How Lithium is Mined Across the Globe: Top 4 Lithium Reserves by Country

Understanding how lithium is mined globally requires examining where the world’s largest deposits are concentrated and the extraction methods employed in each region. For investors interested in the lithium sector, knowing not just which countries produce the most lithium, but also how that lithium is extracted, provides valuable insight into production capacity and future growth potential. Global lithium reserves currently stand at 30 million metric tons as of 2024, according to the US Geological Survey, with reserves data reflecting contained lithium content.

The world’s lithium mining operations employ two primary extraction methodologies: salt lake (brine) mining and hard-rock spodumene mining. These approaches differ significantly in cost, environmental impact, and production timelines, shaping the strategic advantages of different lithium-producing nations. As demand for lithium-ion batteries continues to surge—driven by electric vehicles and energy storage systems—understanding how major countries mine their lithium reserves becomes increasingly important.

Salt Lake Mining: Chile Dominates with 9.3 Million Metric Tons of Lithium Reserves

Chile holds the world’s largest lithium reserves at 9.3 million metric tons, with the majority located in the Salar de Atacama region, which contains approximately 33 percent of global lithium reserve base. The country’s dominance stems largely from its massive salt lake deposits, which are mined through brine extraction methods. How lithium is mined in Chile involves pumping mineral-rich brine from underground aquifers, evaporating it in large ponds, and processing the concentrated solution to extract lithium compounds.

SQM and Albemarle operate the primary lithium mining facilities in Salar de Atacama, leveraging decades of operational experience. Despite possessing the world’s largest reserves, Chile ranked as the second-biggest lithium producer in 2024, generating 44,000 metric tons. This apparent paradox reflects regulatory challenges rather than resource scarcity. In 2023, Chilean President Gabriel Boric announced plans to partially nationalize the country’s lithium industry, aiming to strengthen state control through Codelco, the state-owned mining company. Codelco has since negotiated for substantially larger stakes in both SQM and Albemarle’s operations, securing controlling interests in all Salar de Atacama mining activities.

According to the Baker Institute, Chile’s strict legal framework governing mining concessions has constrained its ability to expand lithium extraction and capture greater market share relative to its resource abundance. However, recent developments signal potential change. In early 2025, the government received seven bids for lithium mining contracts across six salt flats, with a consortium comprising Eramet, Quiborax, and Codelco emerging as a significant contender. Winners are expected to be announced in March 2025, with plans for expanded extraction operations.

Hard-Rock Spodumene Extraction: Australia’s Alternative to Brine Mining

Australia holds 7 million metric tons of lithium reserves, concentrated primarily in Western Australia, but these deposits take a fundamentally different form than Chile’s brine resources. Australian lithium reserves exist as hard-rock spodumene deposits, requiring distinct mining and processing techniques. How lithium is mined in Australia involves traditional hard-rock mining operations—extracting ore from open-pit or underground mines, crushing the material, and processing it through flotation and thermal conversion to recover lithium compounds.

This extraction method contrasts sharply with brine mining in several respects: it requires significant capital investment in mining infrastructure, has higher direct operational costs per ton, but offers faster production ramp-up and smaller environmental footprints in terms of water usage. Despite holding fewer reserves than Chile, Australia emerged as the world’s largest lithium producer in 2024, reflecting the efficiency advantages of hard-rock mining operations.

The Greenbushes lithium mine, operational since 1985, represents the flagship of Australian lithium extraction. Operated by Talison Lithium—a joint venture involving Tianqi Lithium, IGO, and Albemarle—Greenbushes demonstrates how hard-rock mining operations achieve scale and consistency. However, recent lithium price pressures have prompted several Australian mining companies to curtail or suspend operations and development projects pending market recovery.

Emerging research reveals untapped lithium potential extending beyond Western Australia’s established mining regions. A 2023 study published in “Earth System Science Data,” led by University of Sydney researchers in collaboration with Geoscience Australia, mapped lithium-rich soil concentrations across the continent. The study identified elevated lithium densities in Queensland, New South Wales, and Victoria, suggesting future mining opportunities as global demand intensifies. Professor Budiman Minasny noted that the mapping “identifies areas with elevated concentrations” and “highlights areas that can be potential future lithium sources,” signaling broader geographic opportunities for Australia’s growing mining sector.

Mining Operations Expansion: Argentina’s Strategic Lithium Development

Argentina ranks third globally with 4 million metric tons of lithium reserves, contributing to the “Lithium Triangle”—the designation for the three-nation cluster of Argentina, Bolivia, and Chile that collectively hosts over half of the world’s lithium reserves. As the world’s fourth-largest lithium producer in 2024, Argentina generated 18,000 metric tons, demonstrating both production capability and significant growth potential.

How lithium is mined in Argentina reflects a combination of brine extraction in salt flat regions and emerging hard-rock operations. Argentina’s lithium mining operations cluster around the Rincon salar and nearby salt deposits, where companies employ brine extraction techniques similar to Chilean operations but often with lower extraction costs. Government investment initiatives have accelerated mining expansion; in May 2022, Argentina committed to investing up to $4.2 billion into its lithium sector over three years to boost output capacity.

Tangible results from this investment strategy emerged in April 2024 when the government approved Argosy Minerals’ expansion plans at the Rincon salar mining site. The expansion project aims to increase annual lithium carbonate production from 2,000 metric tons to 12,000 metric tons—a six-fold increase reflecting Argentina’s aggressive production scaling. The country hosts approximately 50 advanced lithium mining projects in various stages of development, according to Fastmarkets data.

Argentina’s cost-competitive mining environment further strengthens its position. Ignacio Celorrio, executive VP of legal and government affairs at Lithium Argentina, emphasized that “Argentina’s lithium production remains cost-competitive even in a low-price environment,” reflecting advantages in both natural resource distribution and operational efficiency. These factors attracted major investment from mining giant Rio Tinto, which announced plans in late 2024 to invest $2.5 billion in lithium extraction expansion at its Rincon salar operations. The Rio Tinto project will increase capacity from 3,000 to 60,000 metric tons, with full capacity achieved following a three-year production ramp-up beginning in 2028.

Scaling Up Lithium Production: How China Mines Its Domestic Resources

China holds 3 million metric tons of lithium reserves, ranking fourth globally, yet maintains disproportionate influence in global lithium markets through aggressive production scaling and downstream processing control. Chinese lithium reserves comprise a diverse mix of deposit types: mineral brines constitute the majority, but significant spodumene and lepidolite hard-rock reserves also exist, requiring varied mining approaches.

How lithium is mined in China reflects this resource diversity. The country employs both brine extraction techniques in western salt lakes and hard-rock mining operations in spodumene-rich regions. In 2024, China produced 41,000 metric tons of lithium, representing a 5,300 metric ton year-on-year increase, demonstrating rapid production acceleration. Despite these gains, China currently imports most lithium required for domestic battery cell manufacturing, sourcing substantial volumes from Australian hard-rock producers.

China’s strategic advantage extends beyond mining into downstream dominance: the nation produces the majority of the world’s lithium-ion batteries and operates most of the world’s lithium-processing facilities, creating an integrated supply chain from extraction through final battery assembly. This vertical integration supports China’s electric vehicle and electronics manufacturing industries, both requiring massive lithium quantities.

Geopolitical tensions surfaced regarding China’s mining and market strategies. In October 2024, the US State Department accused China of flooding lithium markets with production to establish artificially depressed prices, thereby eliminating non-Chinese competition. Jose W. Fernandez, US Under Secretary of State for Economic Growth, Energy and the Environment, stated: “They engage in predatory pricing… (they) lower the price until competition disappears.”

Recent discoveries signal further Chinese lithium reserve expansion. In early 2025, Chinese media reported significant bolstering of the nation’s lithium ore reserves, with national deposits now accounting for 16.5 percent of global resources, up from 6 percent previously. The expansion stems partly from discovery of a 2,800-kilometer lithium belt in western regions, featuring proven reserves exceeding 6.5 million tons of lithium ore and potential resources surpassing 30 million tons. Technological advances in extracting lithium from salt lakes and mica deposits have additionally expanded accessible reserves, suggesting production capacity will continue escalating.

Emerging Lithium Mining Nations and Global Production Growth

Beyond the four largest reserve holders, numerous countries are developing lithium mining operations to meet surging global demand. The United States holds 1.8 million metric tons, Canada contains 1.2 million metric tons, while Brazil, Zimbabwe, and Portugal host 390,000, 480,000, and 60,000 metric tons respectively. Portugal maintains the largest European lithium reserves and produced 380 metric tons in 2024, with mining operations expanding to meet continental battery manufacturing growth.

As the lithium industry continues expanding, production capacity increasingly scales alongside reserve development. Countries maintaining substantial reserves are emerging as significant producers, investing in mining infrastructure and technological capabilities to capture value from this critical battery metal.

Outlook: Lithium Mining Demand Continues Rising

Demand for lithium-ion batteries is expected to accelerate substantially in 2025 and beyond. According to Benchmark Mineral Intelligence senior analyst Adam Megginson, “Demand for lithium-ion batteries is set to continue to grow rapidly in 2025. Benchmark forecasts that EV and ESS-related demand for lithium will both increase by over 30 percent year-on-year in 2025.” This demand surge underscores why understanding both how lithium is mined and where reserves are concentrated remains essential for investors, policymakers, and industry participants tracking the global battery metal supply chain. As production ramps up across multiple geographies and mining techniques evolve, the countries and companies that master lithium extraction will shape the energy transition’s trajectory.