Global Lithium Reserves Landscape: Where the World's Battery Metal Is Concentrated

The global lithium reserves in the world total approximately 30 million metric tons as of 2024, according to the US Geological Survey. Understanding how these reserves are distributed geographically is crucial for investors, industry participants, and policymakers seeking to grasp the future dynamics of battery metal supply. With lithium-ion battery demand projected to grow over 30% year-on-year in 2025 alone, driven by electric vehicle and energy storage systems adoption, the concentration of lithium reserves in specific regions will increasingly shape global energy transitions and economic power.

Asia-Pacific’s Strategic Position in World Lithium Reserves

China’s Expanding Reserve Base

China currently holds 3 million metric tons of lithium reserves, making it the fourth-largest reserve holder globally. However, recent discoveries are dramatically reshaping this picture. In early 2025, Chinese media reported significant upward revisions to the country’s lithium reserve assessments. Official claims now place China’s lithium resources at 16.5% of global totals—a substantial jump from the previously reported 6%. This surge is attributed to the discovery of a 2,800-kilometer lithium belt in western regions, with proven reserves now exceeding 6.5 million tons of lithium ore and potential resources surpassing 30 million tons.

Despite comparatively modest reserves, China’s dominance in lithium processing and battery manufacturing is unparalleled. The country produced 41,000 metric tons of lithium in 2024 and hosts the majority of the world’s lithium-processing facilities and lithium-ion battery production capacity. Its massive industrial demand stems from electronics manufacturing and electric vehicle production. Currently, China imports most raw lithium from Australia to feed its processing infrastructure.

In October 2024, the US State Department accused China of employing predatory pricing strategies to saturate markets and eliminate non-Chinese competitors. 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.”

Australia: Production Powerhouse With Secondary Reserve Position

Australia maintains 7 million metric tons of lithium reserves, concentrated predominantly in Western Australia. A critical distinction sets Australia apart: its lithium exists as hard-rock spodumene deposits rather than brines, requiring different extraction technologies compared to competitors.

Notably, Australia became the world’s largest lithium producer in 2024 despite holding the second-largest global reserve base. The Greenbushes mine, operated by Talison Lithium—a joint venture between Chinese producer Tianqi Lithium, Australian miner IGO, and global company Albemarle—has operated continuously since 1985 and represents one of the world’s most productive lithium operations.

Recent research published in “Earth System Science Data” (2023) conducted by University of Sydney researchers in collaboration with Geoscience Australia identified untapped lithium potential beyond Western Australia’s traditional mining regions. High lithium concentrations were mapped in Queensland, New South Wales, and Victoria, signaling future expansion opportunities as global demand accelerates.

Market disruptions have reshaped Australian production strategies. Declining lithium prices have compelled several domestic lithium companies to curtail or suspend operations and development projects, awaiting improved market conditions.

The Lithium Triangle: South America’s Dominance in Global Lithium Reserves

Chile: Largest Global Reserve Holder

Chile holds 9.3 million metric tons of lithium reserves—the largest concentration globally. The Salar de Atacama region alone comprises approximately 33% of the world’s lithium reserve base, hosting most of the planet’s “economically extractable” lithium. Chile was the second-largest lithium producer in 2024, extracting 44,000 metric tons despite its commanding reserve position.

Two major companies dominate Chilean lithium extraction: SQM and Albemarle, both operating intensively in Salar de Atacama. In April 2023, Chilean President Gabriel Boric announced partial nationalization of the lithium industry to strengthen the economy and protect environmental resources. State-owned company Codelco has negotiated substantially larger stakes in both SQM and Albemarle’s Chilean assets and will hold controlling interests in all Salar de Atacama operations going forward.

Regulatory constraints have paradoxically limited Chile’s global market share expansion. According to analysis from the Baker Institute, Chile’s stringent legal framework governing mining concessions has restricted the nation’s ability to capture market share proportional to its mineral wealth.

Early 2025 developments signaled potential acceleration. Chile received seven bids for lithium operation contracts across six salt flats, with a notable consortium comprising Eramet, Chilean miner Quiborax, and Codelco emerging as a key contender. Winners were scheduled for announcement in March 2025, with an extended second bidding phase designed to boost competition and participation.

Argentina: The Rising Producer

Argentina ranks third in global lithium reserves with 4 million metric tons. As part of the “Lithium Triangle” alongside Chile and Bolivia, Argentina shares in a region containing over 50% of the world’s total lithium reserves. The country is also the world’s fourth-largest lithium producer, yielding 18,000 metric tons in 2024.

The Argentine government demonstrated strong commitment to lithium sector expansion through multiple channels. In May 2022, authorities committed up to US$4.2 billion in investments over three years specifically targeting lithium industry growth. Subsequently, in April 2024, the government approved expansion of Argosy Minerals’ Rincon salar operations, targeting an increase in annual lithium carbonate production from 2,000 metric tons to 12,000 metric tons.

Argentina currently hosts approximately 50 advanced lithium mining projects in development. According to Fastmarkets data, the nation’s lithium production remains cost-competitive even in depressed price environments, enhancing long-term viability. Lithium Argentina’s executive VP of legal and government affairs, Ignacio Celorrio, emphasized: “Argentina’s lithium production remains cost-competitive even in a low-price environment.”

Late 2024 brought a significant expansion announcement. Mining giant Rio Tinto committed US$2.5 billion to expand lithium extraction at its Rincon salar operations, targeting capacity increases from 3,000 to 60,000 metric tons annually. Full production capacity is scheduled for 2028 following a three-year ramp-up period.

Emerging Reserve Holders: Diversifying Global Supply

Beyond the dominant four nations, several countries maintain noteworthy lithium reserves that contribute to global supply diversification:

• United States — 1.8 million metric tons
• Canada — 1.2 million metric tons
• Zimbabwe — 480,000 metric tons
• Brazil — 390,000 metric tons
• Portugal — 60,000 metric tons (Europe’s largest)

Portugal stands as Europe’s leading lithium reserve holder and produced 380 metric tons in 2024, maintaining production levels consistent with the prior year.

Strategic Implications: Lithium Reserve Distribution Shaping Energy Futures

The concentration of world lithium reserves demonstrates a highly uneven global distribution with profound geopolitical implications. The Lithium Triangle nations—Chile, Argentina, and Bolivia—collectively contain over half of all global lithium reserves, establishing South America as the critical foundation of global battery metal supply.

Meanwhile, Asia-Pacific’s lithium processing dominance, particularly China’s manufacturing and refinement capabilities, creates an asymmetrical dynamic: raw material reserves concentrate in South America while value-added processing concentrates in Asia. This geographic separation between raw resources and processing infrastructure creates both opportunities and vulnerabilities in global battery supply chains.

As lithium demand accelerates, driven by electric vehicle proliferation and stationary energy storage deployment, competition for reserve access intensifies. Nations with substantial lithium reserves gain strategic leverage, while countries dependent on imports must secure long-term supply agreements. The coming years will determine whether current reserve-holding advantages translate into sustained competitive positions or whether technological innovations in extraction efficiency or battery chemistry alter the competitive landscape entirely.