Omari Gates
Australia has one of the world's largest lithium reserves, and is the biggest producer and exporter of lithium by weight, with most of its production coming from mines in Western Australia. In 2020, 46% of the world's lithium came from Australia, and exports of lithium are expected to continue to increase, forecasted to contribute $9.4 billion in revenue to the Australian economy by 2023-24. Most Australian lithium is produced from hard-rock spodumene, and is shipped to China for further processing. However, the Australian government wants to break the world's dependence on China for processing the minerals driving the green revolution, and is exploring new models for producing battery chemicals closer to home.
| Characteristics | Values |
|---|---|
| Lithium reserves | Australia has one of the biggest lithium reserves in the world |
| Lithium production | Australia is the biggest producer of lithium by weight |
| Lithium mines | Most of Australia's lithium production comes from mines in Western Australia |
| Lithium mining companies | Orocobre, Core Lithium, Pilbara Minerals, Mineral Resources, Altura Mining, Tianqi Lithium, Talison Lithium, IGO Limited |
| Lithium export | Australia is the world's biggest exporter of lithium |
| Lithium export percentage | In 2020, 46% of the world's lithium came from Australia |
| Lithium export revenue | Exports of lithium are expected to contribute $9.4 billion in revenue to the Australian economy by 2023-24 |
| Lithium export cap | A 2023 estimate suggests that lithium production in Australia will hit a cap of 1.2 million tonnes of lithium carbonate equivalent by 2030 |
| Lithium export destination | Most of Australia's lithium is shipped to and sold in China for further processing |
| Lithium export destinations in the future | The Australian government is trying to break its dependence on China and is exploring selling lithium to allies like the United States and South Korea |
| Lithium export port | Processed ore is shipped out via the port of Esperance |
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What You'll Learn
- Most of Australia's lithium is shipped to China
- Australia is the world's biggest exporter of lithium
- Australian lithium is mostly produced in Western Australia
- The Mt Cattlin mine in Western Australia shipped 192,000 dry tonnes of spodumene in 2019
- Australia wants to reduce its dependence on China for lithium processing
Most of Australia's lithium is shipped to China
Australia has one of the world's largest reserves of lithium and is the biggest producer and exporter of lithium by weight. Most of the country's lithium production comes from mines in Western Australia, with the world's largest hard-rock lithium mine, the Greenbushes mine, located in this region. Other notable mines include the Mt Cattlin mine near Ravensthorpe, which produced 192,000 dry tonnes of spodumene in 2019.
Australian lithium mines primarily extract spodumene concentrate, a lithium mineral derived from pegmatite. Spodumene is a greenish crystalline powder that is about 6% lithium and sells for about $5,700 a ton. After extraction, the spodumene is shipped to China for further processing. This is because most Australian lithium mines use extremely carbon-intensive power sources, especially diesel, for extraction and processing, and shipping the spodumene to China for refining also uses highly carbon-intensive fuels.
China is not only a major processor of lithium but also a significant producer, alongside countries like Argentina and Chile. However, while these countries produce lithium mainly from salt lakes, Australian lithium is predominantly produced from hard-rock spodumene. In 2020, Australia contributed about 46% of the world's lithium supply, and it is estimated that the country will remain the top producer in the following years.
While Australia has been shipping most of its lithium to China, the Australian government and businesses are trying to reduce this dependence. Pilbara Minerals, the country's largest independent lithium miner, is exploring a new model for producing battery chemicals closer to the lithium mining sites. The aim is to sell these chemicals to allies like the United States and South Korea, reducing the reliance on China for processing the minerals critical to the green revolution.
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Australia is the world's biggest exporter of lithium
Australia is the world's largest producer of lithium by weight, with most of its production coming from mines in Western Australia. The country is home to lithium miners Orocobre, Core Lithium, Pilbara Minerals, Mineral Resources, and Altura Mining. Australia has one of the world's biggest lithium reserves, and most of its lithium is produced from hard-rock spodumene. The world's largest hard-rock lithium mine, the Greenbushes mine, is located in Western Australia and is co-operated by the Chinese company Tianqi Lithium and the Australian companies Talison Lithium and IGO Limited.
In January 2021, the Australian Bureau of Statistics created a new statistical commodity code, Lithium Concentrates (AHECC code 25309011), to capture spodumene concentrate exported by Australia. The country's lithium production is expected to increase, with a 2023 estimate suggesting it will hit a cap of 1.2 million tonnes of lithium carbonate equivalent by 2030. However, Australia's proportion of global lithium production is expected to decrease by then.
Australia's lithium is primarily shipped to China for further processing, but the country is trying to reduce its dependence on China for lithium mining. Pilbara Minerals, Australia's largest independent lithium miner, is exploring a new model for producing battery chemicals closer to where the lithium is mined and sold to allies like the United States and South Korea.
Australia's lithium exports are crucial to the global market, with 46% of the world's lithium supply coming from the country in 2020. The lithium produced in Australia is a key component in the production of rechargeable batteries used in electric vehicles, renewable energy storage, and consumer devices such as mobile phones, laptops, and cameras.
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Australian lithium is mostly produced in Western Australia
Australia has one of the world's largest reserves of lithium and is the biggest producer of the metal by weight. Most of the country's lithium production comes from mines in Western Australia.
The Greenbushes mine in Western Australia is the world's largest hard-rock lithium mine. It is co-operated by the Chinese company Tianqi Lithium and the Australian companies Talison Lithium and IGO Limited. In 2021, it contributed 40% of the lithium mined in Australia. Greenbushes is also the country's oldest continuously operated lithium mine, with a history dating back to the discovery of tin in 1888.
The Mt Cattlin mine, another open-pit mine near Ravensthorpe, Western Australia, contains an estimated 8.2 million tonnes of lithium reserves. In 2019, the mine produced 192,000 dry tonnes of spodumene. Other major lithium mines in Western Australia include Wodgina, Pilgangoora, and Mount Marion.
The Australian government is encouraging investment in the lithium industry, aiming to make Western Australia a hub for battery-making and research surrounding lithium battery manufacturing. The federal and state governments, along with industry, have funded a new modern national lithium research centre valued at A$135 million, which will operate out of Curtin University in Perth.
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The Mt Cattlin mine in Western Australia shipped 192,000 dry tonnes of spodumene in 2019
Australia has one of the world's largest reserves of lithium and is the biggest producer of the metal by weight. Most of the country's lithium production comes from mines in Western Australia, with the Greenbushes mine in the southwest being the nation's oldest and biggest lithium mine. The Mt Cattlin mine, located near Ravensthorpe in Western Australia, is another major producer of lithium in the country. In 2019, the mine shipped 192,000 dry tonnes of spodumene, a type of lithium ore.
The Mt Cattlin mine was developed by Galaxy Resources (now Allkem) and opened in 2010. The site contains an estimated 8.2 million tonnes of lithium reserves, with a lithium oxide equivalent content of around 1.2-1.3%. Mining at the site was temporarily suspended in 2013 due to a drop in lithium prices but was restarted in 2016. The mine has a long history of production, with a 17-year mine life planned as of 2016, and it plays a significant role in the global lithium market.
Spodumene is a key source of lithium, and Australia's production of this mineral has had a substantial impact on the global supply. In 2017, a threefold increase in Australia's spodumene production was a major factor in the worldwide production increase of lithium. This surge in spodumene output contributed to Australia overtaking Chile as the largest producer of lithium in the world. The Mt Cattlin mine's substantial shipment of 192,000 dry tonnes of spodumene in 2019 further highlights the significant role that Australian mines play in the global lithium industry.
The processed ore from the Mt Cattlin mine is shipped out through the port of Esperance, located around 200 kilometres east of the mine. The destination of these shipments is often China, which is the primary processor of Australian lithium. However, the carbon-intensive nature of both the extraction and processing of Australian lithium has been noted as an area of concern. As the global demand for lithium continues to rise, the impact of carbon-intensive practices on the environment will become an increasingly critical issue.
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Australia wants to reduce its dependence on China for lithium processing
Australia is the largest producer of lithium by weight, with most of its production coming from mines in Western Australia. The country mines about 53% of the world's lithium supply, which is mostly sold to China for refining and use in products like electric vehicles and mobile phones. However, Australia is now seeking to reduce its dependence on China for processing lithium.
Currently, Australia has two facilities for producing battery-grade lithium hydroxide, both of which have faced significant construction delays. Nevertheless, Australia has the potential to become a major player in the lithium refining market. A government report predicted that the country could capture 20% of this market by 2027.
Australian companies are exploring ways to bring lithium processing closer to home. For example, Pilbara Minerals, Australia's largest independent lithium miner, is working with Australian tech company Calix to refine spodumene into lithium phosphate salt. This is a crucial step in the process of creating battery cells.
However, reducing dependence on China for lithium processing will be challenging. China has hundreds of lithium refining plants, years of experience, and established infrastructure. Additionally, the investment required to set up a lithium hydroxide plant in Australia is estimated to be two and a half times higher than in China. Australia's stringent environmental and labour standards may also make it difficult for the country to compete with China on price.
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Frequently asked questions
Australia ships most of its lithium to China for further processing.
Australian lithium mines primarily extract spodumene concentrate, which is further processed to produce lithium hydroxide or lithium carbonate. This processed lithium is used in batteries that power goods like cellphones and electric cars.
Australia is exploring new models for producing battery chemicals closer to where the lithium is mined and sold to allies like the United States and South Korea.
The Greenbushes mine in Western Australia is the world's largest hard-rock lithium mine.
