Global Lithium Reserves: Where the Battery Metal's Future Is Being Shaped

With lithium demand projected to surge over 30 percent in 2025 for both EV and energy storage applications, understanding where the world’s battery metal supplies are located has become critical for investors and industry stakeholders. The planet’s total lithium reserves reached 30 million metric tons as of 2024, yet these reserves are heavily concentrated in just a handful of nations. This geographic concentration has profound implications for battery supply chains and the global energy transition.

The Lithium Triangle’s Dominance

Three countries form what’s known as the lithium triangle—Chile, Argentina, and Bolivia—together controlling more than half of the world’s identified lithium reserves. This concentration gives these South American nations extraordinary leverage in shaping global battery markets. Among the lithium triangle nations, Chile stands as the reserve powerhouse with 9.3 million metric tons, while Argentina holds 4 million metric tons. Bolivia, though part of the triangle, maintains additional strategic importance within the regional ecosystem.

Australia: Hard-Rock Reserves and Production Leadership

Australia possesses 7 million metric tons of lithium reserves, primarily in the form of hard-rock spodumene deposits concentrated in Western Australia. What distinguishes Australia from its South American counterparts is its production output—the country was the world’s largest lithium producer in 2024, demonstrating that reserve size doesn’t always correlate directly with production volume. The Greenbushes mine, operated through a joint venture involving Talison Lithium, Tianqi Lithium, and Albemarle, has been in continuous operation since 1985 and represents one of the world’s most significant production facilities.

However, a sharp decline in lithium prices during recent years prompted several Australian mining operators to reduce or suspend operations temporarily. This highlights the complex relationship between abundant reserves and economic viability. New research initiatives are mapping lithium concentrations across Queensland, New South Wales, and Victoria, suggesting future production could expand beyond Western Australia’s current dominance.

Chile’s Strategic Control and Development Trajectory

Chile’s 9.3 million metric tons of reserves, concentrated in the Salar de Atacama region which houses roughly one-third of global reserves, make it the undisputed reserve leader. Yet Chile ranked only second in 2024 production at 44,000 metric tons, behind Australia. The country’s regulatory framework has limited its ability to capture greater market share despite its geological advantages.

Recent government initiatives signal changing dynamics. In 2023, the Chilean government announced plans to partially nationalize the lithium industry, with state-owned Codelco negotiating controlling interests in major operations. By early 2025, the government opened bidding for lithium contracts across six salt flats, with winners to be announced in March 2025. These structural reforms could reshape Chile’s role in global supply chains.

Argentina’s Emerging Production Expansion

Argentina’s 4 million metric tons of reserves place it third globally, yet the country produced only 18,000 metric tons in 2024 as the world’s fourth-largest producer. This gap between reserves and current production reflects significant untapped potential. The Argentine government committed US$4.2 billion to lithium industry development in 2022, with recent approvals for major expansions underway.

Rio Tinto announced in late 2024 a US$2.5 billion investment to increase lithium extraction capacity at Argentina’s Rincon salar from 3,000 to 60,000 metric tons annually by 2028. Argosy Minerals received approval in April 2024 to expand operations at the same site from 2,000 to 12,000 metric tons annually. Argentina currently hosts approximately 50 advanced lithium mining projects, positioning the nation as a critical growth engine for future supply.

China: Processing Dominance Despite Modest Reserves

China holds 3 million metric tons of lithium reserves—the smallest among the top four—yet its role in global markets extends far beyond reserve volumes. The nation produced 41,000 metric tons in 2024 and dominates global lithium-ion battery manufacturing and processing operations. China currently imports most lithium needed for its battery industry from Australia and other suppliers, relying on its processing expertise rather than domestic reserves.

Recent developments signal shifting reserve dynamics. Chinese media reported in early 2025 that national deposits now represent 16.5 percent of global resources, up from 6 percent, attributed to discovery of a 2,800-kilometer lithium belt in western regions with proven reserves exceeding 6.5 million tons of lithium ore. However, geopolitical tensions emerged when the US State Department accused China in October 2024 of predatory pricing practices designed to eliminate non-Chinese competition.

The Broader Lithium Reserve Landscape

Beyond the top four, significant reserves exist in secondary markets: the United States holds 1.8 million metric tons, Canada 1.2 million metric tons, Zimbabwe 480,000 metric tons, Brazil 390,000 metric tons, and Portugal 60,000 metric tons. Portugal maintains the largest European reserves and produced 380 metric tons in 2024. These secondary producers increasingly matter as battery demand diversifies supply chain dependencies.

What This Means for the Energy Transition

The concentration of lithium reserves in the lithium triangle and Australia creates both opportunity and risk. While these regions possess the geological endowment needed to support decades of battery production, their regulatory policies, political stability, and investment climate will determine whether reserve abundance translates into actual supply. The lithium industry’s trajectory depends not just on where reserves exist, but on how efficiently and responsibly they’re developed.