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The World’s Top 10 Lithium Mining Companies

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VCE The World’s Top 10 Lithium Mining Companies

The World’s Top 10 Lithium Mining Companies

Battery demand for electric vehicles, energy storage systems, and portable electronic devices is propelling lithium mining around the planet.

As a result, worldwide lithium production increased by 21% in 2021 compared to 2020 to approximately 100,000 metric tons.

The above infographic lists the world’s largest mining companies of the white metal by market capitalization.

Where Does Lithium Come From?

There are two primary sources to obtain lithium:

  • Brine: Lithium brine deposits are accumulations of saline groundwater enriched in dissolved lithium. Although abundant in nature, only select regions in the world contain brines, mostly in South America.
  • Mineral/Hard Rock: Lithium found in ‘hard rock’ is a part of minerals hosted in pegmatites, rock units formed when mineral-rich magma intrudes from magma chambers into the Earth’s crust. As the magma cools, water and other minerals become concentrated.

Lithium can also be extracted from lithium clays, but there’s still no commercial scale of production for this method of extraction.

Here’s a look at lithium resources and production by country:

Country Mine Production (metric tons)Reserves (metric tons)
🇦🇺 Australia55,0005,700,000
🇨🇱 Chile26,0009,200,000
🇨🇳 China14,0001,500,000
🇦🇷 Argentina6,2002,200,000
🇧🇷 Brazil1,50095,000
🇿🇼 Zimbabwe1,200220,000
🇵🇹 Portugal90060,000
🇺🇸 United StatesWithheld750,000
🌐 Other countries 2,700,000

According to the U.S. Geological Survey, four mineral operations in Australia, two brine operations each in Argentina and Chile, and two brine and one mineral operation in China accounted for the majority of global lithium production in 2021.

The Largest Lithium Miners

The world’s largest lithium producer, Albemarle Corporation, operates at the Chilean resource of Salar de Atacama in partnership with the second biggest producer, Sociedad Química y Minera de Chile (SQM). Salar de Atacama is home to almost a quarter of the world’s current supply of lithium and has been in operation since the 1980s.

Albemarle also has assets in Nevada, U.S., and Australia. Its Clayton Valley operation is the only source of lithium production in the United States.

RankCompanyMarket Cap (in billions $)
#1Albemarle33.9
#2SQM (Sociedad Química y Minera de Chile)29.6
#3Tianqi Lithium25.0
#4Ganfeng Lithium22.9
#5Mineral Resources Ltd. 9.4
#6Pilbara Minerals8.6
#7Allkem6.5
#8Livent6.2
#9Sichuan Yahua Industrial4.8
#10Lithium Americas4.2

While Australia and Chile account for the majority of lithium supply, China has more than half of all capacity for refining it into specialized battery chemicals.

As part of the country’s efforts to dominate the clean energy metals supply chain, three Chinese companies are also among the top lithium mining companies. The biggest, Tianqi Lithium, has a significant stake in Greenbushes, the world’s biggest hard-rock lithium mine in Australia.

Lithium Supply Security

Between 2000 and 2010, lithium consumption in batteries increased by 20% annually. In the following decade, that figure jumped to 107% per year for batteries, with overall lithium consumption growing 27% annually on average.

Demand for lithium is forecast to almost triple by mid-decade from last year’s level, according to BloombergNEF.

Therefore, lithium supply security has become a top priority for tech companies in Asia, Europe, and the United States.

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Electrification

Visualized: What is the Cost of Electric Vehicle Batteries?

The cost of electric vehicle batteries can vary based on size and chemical composition. Here are the battery costs of six popular EV models.

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The Cost of EV's Battery

What is the Cost of Electric Vehicle Batteries?

The cost of an electric vehicle (EV) battery pack can vary depending on composition and chemistry.

In this graphic, we use data from Benchmark Minerals Intelligence to showcase the different costs of battery cells on popular electric vehicles.

Size Matters

Some EV owners are taken by surprise when they discover the cost of replacing their batteries.

Depending on the brand and model of the vehicle, the cost of a new lithium-ion battery pack might be as high as $25,000:

VehicleBattery TypeBattery CapacityBattery CostTotal Cost of EV
2025 Cadillac Escalade IQNickel Cobalt Manganese Aluminum (NCMA)200 kWh$22,540$130,000
2023 Tesla Model SNickel Cobalt Aluminum (NCA)100 kWh$12,030$88,490
2025 RAM 1500 REVNickel Cobalt Manganese (NCM)229 kWh$25,853$81,000
2022 Rivian Delivery VanLithium Iron phosphate (LFP)135 kWh$13,298$52,690
2023 Ford MustangLithium Iron Phosphate (LFP)70 kWh$6,895$43,179
2023 VW ID.4Nickel Cobalt Manganese (NCM622)62 kWh$8,730$37,250

The price of an EV battery pack can be shaped by various factors such as raw material costs, production expenses, packaging complexities, and supply chain stability. One of the main factors is chemical composition.

Graphite is the standard material used for the anodes in most lithium-ion batteries.

However, it is the mineral composition of the cathode that usually changes. It includes lithium and other minerals such as nickel, manganese, cobalt, or iron. This specific composition is pivotal in establishing the battery’s capacity, power, safety, lifespan, cost, and overall performance.

Lithium nickel cobalt aluminum oxide (NCA) battery cells have an average price of $120.3 per kilowatt-hour (kWh), while lithium nickel cobalt manganese oxide (NCM) has a slightly lower price point at $112.7 per kWh. Both contain significant nickel proportions, increasing the battery’s energy density and allowing for longer range.

At a lower cost are lithium iron phosphate (LFP) batteries, which are cheaper to make than cobalt and nickel-based variants. LFP battery cells have an average price of $98.5 per kWh. However, they offer less specific energy and are more suitable for standard- or short-range EVs.

Which Battery Dominates the EV Market?

In 2021, the battery market was dominated by NCM batteries, with 58% of the market share, followed by LFP and NCA, holding 21% each.

Looking ahead to 2026, the market share of LFP is predicted to nearly double, reaching 38%.

NCM is anticipated to constitute 45% of the market and NCA is expected to decline to 7%.

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How Clean is the Nickel and Lithium in a Battery?

This graphic from Wood Mackenzie shows how nickel and lithium mining can significantly impact the environment, depending on the processes used.

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How clean is the lithium and nickel in battery

How Clean is the Nickel and Lithium in a Battery?

The production of lithium (Li) and nickel (Ni), two key raw materials for batteries, can produce vastly different emissions profiles.

This graphic from Wood Mackenzie shows how nickel and lithium mining can significantly impact the environment, depending on the processes used for extraction.

Nickel Emissions Per Extraction Process

Nickel is a crucial metal in modern infrastructure and technology, with major uses in stainless steel and alloys. Nickel’s electrical conductivity also makes it ideal for facilitating current flow within battery cells.

Today, there are two major methods of nickel mining:

  • From laterite deposits, which are predominantly found in tropical regions. This involves open-pit mining, where large amounts of soil and overburden need to be removed to access the nickel-rich ore.

  • From sulphide ores, which involves underground or open-pit mining of ore deposits containing nickel sulphide minerals.

Although nickel laterites make up 70% of the world’s nickel reserves, magmatic sulphide deposits produced 60% of the world’s nickel over the last 60 years.

Compared to laterite extraction, sulphide mining typically emits fewer tonnes of CO2 per tonne of nickel equivalent as it involves less soil disturbance and has a smaller physical footprint:

Ore TypeProcessProductTonnes of CO2 per tonne of Ni equivalent
SulphidesElectric / Flash SmeltingRefined Ni / Matte6
LateriteHigh Pressure Acid Leach (HPAL)Refined Ni / Mixed Sulpide Precipitate / Mixed Hydroxide Precipitate13.7
LateriteBlast Furnace / RKEFNickel Pig Iron / Matte45.1

Nickel extraction from laterites can impose significant environmental impacts, such as deforestation, habitat destruction, and soil erosion.

Additionally, laterite ores often contain high levels of moisture, requiring energy-intensive drying processes to prepare them for further extraction. After extraction, the smelting of laterites requires a significant amount of energy, which is largely sourced from fossil fuels.

Although sulphide mining is cleaner, it poses other environmental challenges. The extraction and processing of sulphide ores can release sulphur compounds and heavy metals into the environment, potentially leading to acid mine drainage and contamination of water sources if not managed properly.

In addition, nickel sulphides are typically more expensive to mine due to their hard rock nature.

Lithium Emissions Per Extraction Process

Lithium is the major ingredient in rechargeable batteries found in phones, hybrid cars, electric bikes, and grid-scale storage systems. 

Today, there are two major methods of lithium extraction:

  • From brine, pumping lithium-rich brine from underground aquifers into evaporation ponds, where solar energy evaporates the water and concentrates the lithium content. The concentrated brine is then further processed to extract lithium carbonate or hydroxide.

  • Hard rock mining, or extracting lithium from mineral ores (primarily spodumene) found in pegmatite deposits. Australia, the world’s leading producer of lithium (46.9%), extracts lithium directly from hard rock.

Brine extraction is typically employed in countries with salt flats, such as Chile, Argentina, and China. It is generally considered a lower-cost method, but it can have environmental impacts such as water usage, potential contamination of local water sources, and alteration of ecosystems.

The process, however, emits fewer tonnes of CO2 per tonne of lithium-carbonate-equivalent (LCE) than mining:

SourceOre TypeProcessTonnes of CO2
per tonne of LCE
MineralSpodumeneMine9
Mineral Petalite, lepidolite and othersMine 8
BrineN/AExtraction/Evaporation3

Mining involves drilling, blasting, and crushing the ore, followed by flotation to separate lithium-bearing minerals from other minerals. This type of extraction can have environmental impacts such as land disturbance, energy consumption, and the generation of waste rock and tailings.

Sustainable Production of Lithium and Nickel

Environmentally responsible practices in the extraction and processing of nickel and lithium are essential to ensure the sustainability of the battery supply chain.

This includes implementing stringent environmental regulations, promoting energy efficiency, reducing water consumption, and exploring cleaner technologies. Continued research and development efforts focused on improving extraction methods and minimizing environmental impacts are crucial.

Sign up to Wood Mackenzie’s Inside Track to learn more about the impact of an accelerated energy transition on mining and metals.

 

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