Where the World's Lithium Supply Is Concentrated: A Deep Dive Into Global Reserve Distribution

The global lithium reserves landscape is heavily concentrated, with a handful of nations controlling the vast majority of the world’s deposits. As demand for lithium continues to surge—driven by the expansion of electric vehicles, energy storage systems, and battery manufacturing—understanding which countries hold the most significant reserves has become critical for investors and industry players alike. Currently, worldwide lithium reserves total 30 million metric tons, with the top reserves concentrated in a remarkably small number of countries that are reshaping the clean energy transition.

The Lithium Triangle: Where Over Half of Global Supplies Are Located

Three neighboring South American nations—Chile, Argentina, and Bolivia—together comprise the “Lithium Triangle,” which hosts more than half of the world’s lithium reserves. This geographic concentration underscores why these countries are becoming increasingly important to global energy security and battery supply chains.

Chile’s Dominance: 9.3 Million Metric Tons of World Supply

Chile leads globally with 9.3 million metric tons of lithium reserves, making it by far the largest holder of the battery metal. The Salar de Atacama region alone contains approximately 33 percent of the world’s lithium reserve base, with much of it classified as “economically extractable.” Major producers SQM and Albemarle operate extensively in this region, though the country has recently shifted its approach to lithium extraction.

In late 2023, the Chilean government announced plans to partially nationalize the lithium industry, with state-owned Codelco negotiating for controlling interests in major operations. Despite holding enormous reserves, Chile produced 44,000 metric tons in 2024—making it the second-largest producer globally. Recent bidding rounds for lithium operation contracts suggest the government is seeking to accelerate production and maximize economic value from these vast deposits.

Argentina’s Rapid Development: 4 Million Metric Tons and Growing

Argentina ranks third globally with 4 million metric tons of lithium reserves, positioning itself as the fourth-largest lithium producer in the world with 18,000 MT of output last year. The nation has demonstrated aggressive expansion plans, with the government committing up to US$4.2 billion to boost lithium production. In 2024, major mining company Rio Tinto announced a US$2.5 billion investment to expand capacity at its Rincon salar operations from 3,000 to 60,000 metric tons by 2028.

“Argentina’s lithium production remains cost-competitive even in a low-price environment,” according to industry executives, highlighting the country’s structural advantages in the sector. With approximately 50 advanced lithium mining projects in development, Argentina represents one of the fastest-growing reserves regions with untapped production potential.

Beyond the Lithium Triangle: Australia and Asia’s Reserves

Australia’s Hard-Rock Advantage: 7 Million Metric Tons

Australia holds 7 million metric tons of lithium reserves, primarily concentrated in Western Australia. Unlike the brine deposits found in South America, Australia’s lithium comes from hard-rock spodumene deposits. This geological difference affects extraction methods but hasn’t prevented Australia from becoming the world’s largest lithium producer in 2024, ahead of even Chile.

The Greenbushes mine, operated by a joint venture including Talison Lithium and major producers Tianqi Lithium and Albemarle, has been producing lithium since 1985 and represents one of the world’s most significant hard-rock sources. Emerging research has identified additional untapped lithium potential in Queensland, New South Wales, and Victoria, suggesting Australia’s reserve base may expand significantly in coming years.

China’s Strategic Position: 3 Million Metric Tons Plus Processing Dominance

China holds 3 million metric tons of proven lithium reserves but plays a far more significant role in global lithium than reserves alone suggest. The country produced 41,000 metric tons in 2024 and currently hosts the majority of the world’s lithium-processing facilities and battery manufacturing capacity. While China imports much of its raw lithium from Australia, it controls the downstream processing that transforms raw material into battery-grade lithium chemicals.

Recent discoveries have bolstered China’s reserve estimates, with media reports claiming deposits now account for 16.5 percent of global resources—up from 6 percent previously. A newly identified 2,800-kilometer lithium belt in western regions reportedly contains proven reserves exceeding 6.5 million tons of lithium ore with potential resources surpassing 30 million tons.

Other Major Reserves-Holding Nations

Beyond the top four, several other countries hold significant lithium reserves worth monitoring:

• United States — 1,800,000 MT
• Canada — 1,200,000 MT
• Zimbabwe — 480,000 MT
• Brazil — 390,000 MT
• Portugal — 60,000 MT (largest in Europe)

Portugal, despite having smaller reserves, produced 380 metric tons of lithium in 2024 and represents growing European interest in developing domestic battery supply chains.

The Supply Outlook: Demand Acceleration and Production Implications

Lithium demand is accelerating far faster than reserve additions. Industry analysts project that EV and energy storage system demand for lithium will both increase by over 30 percent year-on-year in 2025 alone. This surging demand is pushing countries with the highest reserves to expand production capacity rapidly.

The concentration of top lithium reserves across a small number of countries creates both opportunities and challenges. Nations with substantial deposits—particularly those in the Lithium Triangle—are positioning themselves as critical infrastructure for the global energy transition. At the same time, geopolitical competition for lithium supply is intensifying, with major powers securing long-term supply agreements and investing in extraction infrastructure.

The top reserves countries are not necessarily the top producers, highlighting the importance of geological type, political stability, investment capital, and processing infrastructure in determining who actually supplies global demand. As lithium remains essential for lithium-ion battery technology powering electric vehicles and energy storage installations, controlling reserves has become a strategic asset in the clean energy race.