China may have bumped Australia out of its spot as the world’s second largest holder of lithium resources, but the shift holds little water compared to our unmatched exports.
The Ministry of Natural Resources in China has released data revealing a 10.5 per cent increase in the country’s share of global lithium reserves, making it second only to Chile in the world’s most lithium-rich regions.
China previously held sixth place among the world’s top reserve-holders, with a 2800km lithium belt in western China touted to hold between 6.5–30 million tonnes responsible for the jump.
The region has yet to be claimed by any mining hopefuls, making future production many years down the track.
Currently, China imports most of its lithium from Australia, which is then refined and exported across the world into rapidly growing electric vehicle (EV) and renewable energy markets.
As such, Australia is still firmly the world’s biggest lithium exporter.
According to the Australian Bureau of Statistics, Australia produced 46 per cent of the world’s lithium in 2020.
The latest Resources and Energy Quarterly report from the Federal Government has revealed that despite softened earnings from lithium exports over the past year, the hangover of which will continue into the first half of 2025, figures are expected to rise again to stabilise at $8.2 billion by 2026.
As prices recover, Australia is expected to add more lithium supply to the global pot than any other country in the lead up to 2026, showing the nation is rising to meet the anticipated 17 per cent increase in global demand.
While China accounted for 65 per cent of global lithium demand in 2023, the behemoth produced only 25 per cent of supply, according to Cameron Hughes, battery markets analyst at UK-based CRU.
“The discovery has the potential to decrease China’s reliance on overseas imports, however it is unlikely that the region will become completely self-reliant,” Hughes told the ABC.
“Demand is growing quickly, ensuring a role for both Australian and Chinese producers.”
