Lithium Price

On the periodic table of elements, lithium is classified as an alkali metal, together with sodium (Na), potassium (K), rubidium (Rb), cesium (Cs), and francium (Fr).

 

Quick Overview of Lithium

✔️An overview of the element lithium (Li) and its discovery
✔️The production of lithium
✔️Trading lithium as a commodity
A short overview of the lithium price
Uses of lithium
Did you know?

 

An overview of the element lithium (Li) and its discovery

The alkali metals can be found in the first column of the periodic table, below hydrogen (H) which is classified as a non-metal and the most abundant element in the universe. They are called alkali metals because they typically form alkalis, which are strong bases that can easily neutralise acids. Alkali metals are not found in the pure state of the Earth’s crust.

Lithium is indicated by the chemical symbol Li and has an atomic number of 3, indicating the number of protons in the element’s nucleus.

The element constitutes only a small percentage of the crust of the Earth, about 0.0007%. It is not found free in nature but occurs in minerals such as petalite, spodumene, lepidolite, and amblygonite. Lithium is also found in brine deposits, as salts in mineral springs, and in salt deserts, referred to as salars.

 

Discovery of lithium

A Swedish chemist, Johan August Arfvedson (also spelled Arfwedson) (1792 – 1841), discovered the element in 1817 in Stockholm during analysing the mineral petalite. He tried to isolate the new element but without success because the battery he used was not powerful enough.

The actual isolation of the metal lithium was done in 1818 by two chemists, William Brande (1788 – 1866) and Humphry Davy (1778 – 1829), working independently. Davy extracted a small quantity of lithium metal by electrolysis of lithium carbonate.

By 1855, the German chemist, Robert William Bunsen (1811 – 1899), and the British chemist, Augustus Matthiessen (1831 – 1870), were independently producing lithium metal in large quantities by electrolysis of molten lithium chloride.

The name ‘lithium’ originates from the Greek word lithos for ‘stone’ because the metal was thought to occur only in minerals at the time of its discovery.

 

Properties of lithium

• Lithium is a soft metal at room temperature. It is so soft, it can be cut with a knife.
• It has a density of 0.534 grams per cubic centimetre, making it the lightest of all the metals. Its density is about half that of water and is able to float on water.
• An excellent conductor of electricity.
• It has a silvery-white colour at room temperature.
• The boiling point is 1 342 degrees Celsius (2 448 degrees Fahrenheit).
• A melting point of 180.50 degrees Celsius (356.90 degrees Fahrenheit).
• It is highly flammable, producing a bright red flame when burning.
• It is very reactive and needs to be stored in mineral oil to prevent it from reacting with water or air. Although, it is less reactive than the other five alkali metals.

 

The production of lithium

Largest global lithium producers in 2025

The top 7 major producers of lithium in 2025 were as follows:

 

1. Australia

Australia mined 55 000 tonnes of lithium content in 2025, by far the largest producer, contributing approximately 55 percent of the world’s lithium.

The country has 5.7 million metric tonnes in lithium reserves with some of the main area deposits in Western Australia where the following lithium mines operate, amongst other mines:

• The Pilgangoora lithium-tantalum project.
• The Earl Grey lithium project is also referred to as the Mt Holland lithium project.
• The Greenbushes lithium project.

According to Mining Technology, five of the world’s biggest lithium mines are located in Western Australia.

 

2. Chile

Chile is the country in the world with the largest lithium deposits – approximately 9.2 million metric tonnes.

The country produced 26 000 tonnes of lithium, mainly mined in the Salar de Atacama region.

 

3. China

China’s production in 2025 was 14 000 tonnes, which were mined in Lake Zabuye and Tibet.

 

4. Argentina

In Argentina, lithium is mined in areas like Salar del Hombre Muerto and Salar de Olaroz. The country’s lithium production was 6 200 tonnes of lithium.

The lithium reserves of Argentina amount to about 2.2 million metric tonnes.

 

5. Brazil

Brazil’s production amounted to 1 500 tonnes, while the country possesses lithium reserves of about 95 000 metric tonnes.

 

6. Zimbabwe

Zimbabwe produced 1 200 tonnes of lithium from its lithium reserves of about 220 000 metric tonnes, mainly located in the Bikita, Goromonzi, and Kamativi areas.

The largest lithium mine in Zimbabwe is the Arcadia lithium project, which is an open pit mine.

 

7. Portugal

Portugal is a lithium-producing country with lithium reserves of about 60 000 tonnes. The country produced 900 tonnes of lithium content in 2025.

Other countries producing considerable amounts of lithium are the USA, Canada, and Bolivia. Mexico, although not among the top global producers of lithium, hosts the world’s largest lithium mine, the Sonora lithium project, located in Sonora.

Statista estimated that global lithium production amounted to 100 000 metric tonnes in 2025, which was a peak in lithium production.

 

The 7 biggest lithium-mining companies in the world

In August 2025, Investing News listed the following 7 mining companies as the major lithium-mining companies in the world:

The market capitalisations of the companies are indicated in brackets.

1. Albemarle Corporation (US$28.68 billion) is the largest provider of lithium for electric vehicle batteries. The company is situated in North Carolina in the USA.
2. Tianqi Lithium (US$27.24), is a Chinese mining and manufacturing company.
3. Jiangxi Ganfeng Lithium (US$26 billion), a Chinese company.
4. SQM (US$25.73 billion), a Chilean company.
5. Pilbara Minerals (US$6.23 billion) is an Australian company operating in Western Australia.
6. Alkem (US$5.36 billion) is headquartered in Buenos Aires, Argentina.
7. Livent (US$4.66 billion) has its headquarters in Philadelphia in the Commonwealth of Pennsylvania, USA.

 

Producing lithium

Currently, two methods are used to commercially produce lithium, namely, hard rock lithium processing and the extraction of lithium-containing salts from underground brine reservoirs referred to as conventional lithium brine extraction. A third method, producing lithium from clay, is in the process of being developed and is expected to become commercially viable in the near future.

Producing lithium from lithium-containing minerals is a significantly more energy-intensive and complex mining process than extracting lithium-containing salts. Contrarily, producing lithium from brine reservoirs is uncomplicated and less expensive but a time-consuming process.

The information below about the two processes to manufacture commercial lithium is based on information obtained from Storage & Transfer Technologies (STT), a wholly owned subsidiary of Carmeuse, a privately owned Belgium company, and ThoughtCo.

 

• Hard rock lithium processing

The largest concentrations of lithium-containing minerals are found in special igneous rock deposits, referred to as pegmatites by geologists. Only five of the minerals that contain lithium are used to produce lithium, namely lepidolite, amblygonite, eucryptite, petalite, and spodumene, with petalite and spodumene the most important ones and spodumene the most abundant one.

In Australia, the major producer of lithium in the world, the metal is primarily obtained from the mineral spodumene.

After the ore is mined, it is crushed and roasted at 1 100 degrees Celsius (C) which are 2 012 degrees Fahrenheit (F). Next, the ore is cooled to 65°C (140° F). Subsequently, it is then milled and roasted again, now with sulfuric acid at a temperature of 250°C (482°F), a process called acid leaching. In order to produce lithium sulfate and an insoluble residue, sulfuric acid is replaced with lithium ions in this step.

Next, lime is added to remove magnesium (a constituent element in spodumene), and soda ash is applied to precipitate lithium carbonate from the final purified, filtered solution.

 

• Conventional lithium brine extraction

Most of the world’s current commercial lithium production is from countries (Bolivia, Chile, Argentina, and China) that use this method.

Salt-rich water from the subsurface brine reservoirs (called salars) is pumped to the surface and into a series of evaporative ponds. Potassium is often first obtained from early ponds.

Over a period of 12 to 18 months, the water slowly evaporates through solar evaporation, and a variety of salt precipitate out, leaving a brine with an ever-increasing lithium concentration that typically contains anywhere from a few hundred parts per million (ppm) of lithium to up to 7 000 ppm.

A slurry of hydrated lime is added during the evaporation process to precipitate out unwanted elements such as magnesium hydroxide and calcium boron salts. When lithium concentration gets to a certain level, the brine is pumped to a recovery facility to extract the lithium carbonate, a process that usually comprises the following steps:

• Brine purification to get rid of contaminants or unwanted elements.
• Precipitating desirable products and by-products by applying chemical treatments.
• Filtration to remove the precipitated solids.
• Application of soda ash to precipitate out lithium carbonate.
• The lithium carbonate is then washed, filtered, and dried. Excess residual brines are pumped into the salar.

The end product, lithium carbonate, is a stable white powder that is a key intermediary in the lithium market because of its ability to be converted into specific industrial salts and chemicals or processed into pure lithium metal.

 

Trading lithium as a commodity

Lithium is not a traded commodity, implying that you cannot invest directly in the metal, as is the case with other metals like iron, gold, and copper.

Although, there are ways available to trade with or invest in lithium indirectly. For example:

 

Lithium exchange-traded funds (ETFs)

Lithium ETFs are based on the lithium commodity. Lithium ETFs available are:

• The Global X Lithium & Battery Tech ETF (LIT) is a financial instrument that tracks 37 companies involved in the mining of lithium and the manufacture of lithium batteries.
• The Amplify Lithium & Battery Technology ETF.

By investing in lithium ETFs, a trader/investor can get exposure to lithium prices across the global market. If you trade wisely you can gain from the constant fluctuation of the lithium price on the markets.

 

Lithium stocks

Lithium stocks refer to the shares of companies that engage in the mining and/or processing of lithium.

One way to get exposure to companies involved in the lithium sector is to trade with contracts for difference (CFDs) on lithium stocks.

Also, you can buy shares of public companies involved in the mining and/or processing of lithium. The following companies are possibilities. (Please take note: These companies are not recommendations, but only examples.)

• Albemarle Corporation is an American company listed on the New York Stock Exchange (NYSE).
• Pilbara Minerals Limited is an Australian company, listed on the Australian Securities Exchange (ASX).
• The Chilean company Sociedad Quimica y Minera de Chile (SQM) trades on the NYSE.
• Orocobre is a mining company based in Australia with most of its mining operations in Argentina. The company is listed on the ASX and the Toronto Stock Exchange (TSX).

If you are planning on investing in or trading with lithium you need to find a reliable and regulated commodity broker who will also provide guidance, and a trading platform, and help you to determine your risk appetite. The broker will also indicate the pros, cons, and risks involved when trading lithium as a commodity.

Furthermore, you need to know what lithium is used for, its possibilities, and what drives the price of the metal.

 

 

A short overview of the lithium price

In 2021, lithium prices reached exceptional levels, and so far in 2022, lithium prices have increased more than 126 percent.

On 20 September 2025, Trading Economics reported that ‘lithium carbonate prices in China rose to a record-high 500,500 yun/tonne in September, soaring over 80% year-to-date as surging demand coincides with lower supply.’

The main driver of the metal’s price is the electric vehicle (EV) industry, testing the lithium market’s ability to expand supply. Lithium demand from the EV sector is rising, a trend that analysts expect to continue throughout the 2025s.

The demand for EVs is, amongst other reasons, driven by global clean energy goals. According to Investing News, ‘global electric car sales totalled 4.2 million units in 2025 – up by 108 percent versus 2025 and by 198 percent versus 2019 … and there are no signs of a slowdown in 2025.’

Elon Musk, CEO of Tesla Motors, tweeted in April 2025 that the ‘Price of lithium has gone to insane levels,’ and ‘There is no shortage of the element itself, as lithium is almost everywhere on Earth, but the pace of extraction/refinement is slow.’

Lithium refining is dominated by China, accounting for more than 75 percent of the world’s lithium processing capacity. This scenario put the supply of lithium at risk because any issues delaying the processing of lithium in China could hamper the supply of lithium, causing the metal’s price to rise.

 

Uses of lithium

Biggest global users

As of 2019, China was the biggest global consumer of lithium, accounting for 39 percent of the world’s lithium consumption. China was followed by two other Asian countries, South Korea (20%), and Japan (18%). This means that 77 percent of the world’s lithium consumption happened in Asia.

Europe’s consumption was 10 percent, North America consumed 6 percent, and the rest of the world 7 percent, implying that the three Asian countries consumed eleven times more lithium than the rest of the world, 7.7 times more than the countries in Europe, and 12.83 times more than the North American countries.

All three Asian countries are major manufacturers of lithium-ion batteries.

 

Uses of lithium

Lithium has a variety of applications, including the manufacture of lithium-ion batteries electric vehicles (EVs) in the automotive industry. Analysts estimate that more than 50 percent of lithium mined is used to manufacture batteries.

Lithium is the lightest known metal, making it an ideal metal that can be alloyed with other metals such as aluminium (aluminum), copper, manganese, and cadmium, creating strong lightweight alloys, which is a mixture of two or more metals. Lightweight metals are, inter alia, used in aircraft.

Lithium has the highest specific heat of any of the solid elements, making it suitable for use in heat transfer applications. (Specific heat refers to the quantity of heat required to raise the temperature of one gram of a substance by one Celsius degree (Encyclopaedia Britannica)).

Other uses of lithium include batteries for cordless power tools, the manufacture of ceramics and special glasses, silver solders, and the manufacture of lubricants and greases.

Several lithium compounds are used. For instance:

• Lithium hydroxide is used to purify the air and extract carbon dioxide in the atmosphere of submarines and spacecraft.
• Lithium carbonate or lithium citrate is used in the medical industry to treat gout and serious mental illness such as manic depressive disorder.
• Lithium stearate is used as a high-temperature lubricant.

 

Did you know?

• You cannot use water to put out a lithium fire, because the water will react with the lithium, making the fire worse.
• Lithium can cause burns when it comes into contact with human skin.
• A combination of lithium and strontium salts, and some other chemicals, creates the red colour in fireworks.
• Lithium is the only alkali metal that reacts with nitrogen.
• A technical problem that happens persistently when a new lithium-ion battery is installed in a device (camera, laptop, wristwatch) is that about 20 percent of the battery’s energy capacity is lost before it can be recharged the very first time. This is also true regarding new electric vehicles (EVs).
• Michael Stanley Whittingham, British-born (December 1941) American chemist, was awarded the 2019 Nobel Prize in Chemistry for his research on and development of lithium-ion batteries. Whittingham is a professor in Chemistry at the Binghamton University State University of New York, which mentioned on its website that Whittingham ‘and his team discovered that holding lithium ions between plates of titanium sulfide created electricity,’ and ‘They have laid the foundation for a wireless, fossil fuel-free society.

Whittingham shared the Nobel Price with American chemist John Goodenough and Yoshino Akira, a chemist from Japan.

 

Note: This article does not constitute investment, financial, or trading advice. Please obtain the advice of a professional and regulated commodity broker before making trading and investment decisions.