Lithium (Li) is the lightest alkali metal on the periodic table, possessing unique electrochemical properties. Its ability to store a large amount of energy for a small mass makes it irreplaceable in modern high-density batteries. This characteristic is the foundation of current global demand. Lithium is the fundamental component in rechargeable lithium-ion batteries that power electric vehicles (EVs), grid-scale energy storage systems, and nearly all consumer electronics.
Lithium’s Primary Geological Habitats
The concentration of lithium into economically viable deposits occurs in two fundamentally different geological environments: dissolved in underground saltwater reservoirs and locked within mineral ore bodies. These two primary habitats dictate the subsequent extraction process and the overall cost profile.
Brine deposits, also known as salars, form when lithium-rich water accumulates in arid, high-altitude salt flats. Extraction involves pumping the subterranean brine to the surface and channeling it into vast, shallow evaporation ponds. Solar energy naturally concentrates the lithium chloride solution as water evaporates and other salts precipitate out. This process takes a significant period of time and is the lowest cost source of lithium production.
Hard rock deposits require the mining of lithium-bearing minerals, most notably spodumene, found within pegmatite rock formations. This requires conventional open-pit mining followed by significant industrial processing to liberate the lithium. The ore is crushed, ground, and beneficiated, often using froth flotation, to create a concentrate containing approximately 6% lithium oxide. This concentrate then undergoes high-temperature thermal treatment, or calcination, followed by acid leaching to dissolve the lithium. The final product is chemically precipitated into battery-grade lithium carbonate or lithium hydroxide.
The Global Landscape of Current Extraction
The majority of the world’s current lithium supply is sourced from geographically concentrated regions. Australia is the world’s largest producer by volume, with its supply almost entirely derived from hard rock spodumene mining. Australia’s output is often shipped as concentrate to China, which dominates the global refining capacity and processes most lithium chemicals into usable battery materials.
South America is the center of brine production, dominated by the “Lithium Triangle,” which spans parts of Chile, Argentina, and Bolivia. Chile and Argentina hold some of the world’s largest estimated lithium reserves, including the prominent Salar de Atacama in Chile. Production relies entirely on the solar evaporation method, utilizing the intense solar radiation and arid climate of the Andean plateaus.
While China is a major processor, it is also a significant producer, extracting lithium from both domestic hard rock and brine sources. The United States, despite having substantial estimated resources, only has one major operating lithium mine in Nevada. Emerging hard rock operations are also developing in North America, particularly in Canada, and in Africa, with Zimbabwe increasing production from its pegmatite deposits.
New and Secondary Supply Streams
To meet increasing demand, new sources are being developed to supplement traditional extraction methods. Direct Lithium Extraction (DLE) represents a suite of emerging technologies designed to selectively separate lithium from brines without the need for large evaporation ponds. DLE technologies, such as adsorption, ion exchange, and solvent extraction, offer significantly higher recovery rates compared to traditional evaporation yields.
This technological shift allows for the commercial extraction of lithium from lower-concentration sources, such as geothermal and oilfield brines, previously considered uneconomical. Geothermal facilities can extract lithium from the hot, mineral-rich water already being brought to the surface for energy production, offering a lower-carbon pathway for supply. DLE also requires a smaller surface footprint and can return the spent brine underground, reducing the environmental impact associated with land and water usage.
Another important source is the recovery of lithium from spent products, often termed urban mining or the secondary supply stream. Lithium-ion battery recycling recovers valuable materials, including lithium, from the discarded “black mass” of electric vehicle and consumer electronic batteries. Although recycling currently contributes a minor share to the total supply, regulatory requirements are establishing mandatory minimum recycled content targets for new batteries. This secondary source is projected to grow substantially as electric vehicles reach their end-of-life cycle, creating a circular economy for the metal.