René Muschter
Research Expert covering Industry & Mobility
Global lithium industry - statistics & facts
Lithium is a silver-white colored soft metal that belongs to the alkali metal group. It is the lightest metal and the least dense solid (at room temperature) element. Highly flammable and reactive, it is usually stored in mineral oil to preserve it from corrosion and tarnish. Due to its high reactivity, lithium does not occur in its elemental form; rather, it occurs naturally as part of chemical compounds. Commercial lithium production consists of isolating lithium through electrolysis from a mixture of potassium chloride and lithium chloride. Global mine output has grown substantially, reflecting rising demand across industries.
A scramble for reserves as demand surges
The total global reserves of lithium have increased in recent years, along with an increase in lithium exploration activity. Although Chile has the world's largest lithium reserves, at an estimated 9.2 million metric tons in 2025, Australia is actually the largest producer of lithium. China is the second-largest lithium producer, and Chile ranks third.
Batteries first: lithium's role in the energy transition
Lithium has several uses, including perhaps its most famous use, in lithium-ion batteries. In fact, lithium-ion batteries accounted for 88 percent of global lithium consumption in 2025, and its use for this application continues to grow as the race to power electric vehicles accelerates. To meet clean energy needs, global lithium supply as raw material is forecast to nearly double by 2030 compared to 2025 levels. Other uses for lithium include lubricating greases, glass and ceramics, metallurgy, nuclear fusion applications, among others. Additionally, lithium has medical applications in the form of lithium carbonate, which is used in medication for bipolar disorder as a mood stabilizer.
A shifting landscape among top producers
There are a handful of dominant lithium producing companies in the world. The Chilean company Sociedad Quimica y Minera de Chile S.A. (SQM) and the United States-based Albemarle are the two leading lithium chemical producers: SQM's lithium production accounted for roughly 14 percent of the global lithium produced in 2025, while Albemarle accounted for about 12 percent. Rio Tinto, meanwhile, ranks as the leading lithium mining company by market capitalization. As global lithium demand is forecast to exceed 1.5 million metric tons of lithium carbonate equivalent by 2026, more producers are entering the market.
