Lithium facts

Lithium and its compounds enable clean energy and transportation through rechargeable batteries for electric vehicles. Lithium compounds are produced in a variety of forms including lithium carbonate (L_i2CO₃), lithium oxide (Li2O), and lithium hydroxide (LiOH).

Learn more about lithium

Uses

Lithium is a highly reactive metal that is used to make energy-dense rechargeable batteries for electronics, such as laptops, cell phones, electric vehicles, and grid storage. The growing demand for lithium-ion batteries has significantly increased global exploration and spurred new lithium projects. In 2023, batteries accounted for 87% of total demand.

Lithium also enhances the durability, corrosion resistance, and thermal resistance of glass products used in glass-ceramic stovetops, glass containers, specialty glass, and fibreglass. Its properties improve productivity and reduce energy consumption in glassmaking.

Lithium is a critical mineral for the energy transition and net-zero emissions will require greater reliance on both new and recycled sources of lithium for batteries.

Production

From 2014 to 2020, Canada’s lithium production was limited. However, since 2021, the TANCO Mine in Manitoba has been producing lithium for export and processing.

Several companies are advancing lithium projects across Canada, exploring both traditional hard rock mining and unconventional sources such as oilfield brines and industrial wastewaters. These projects are at various stages, from early exploration to pre-production, and are located in Ontario, Quebec, Alberta, Manitoba, and Saskatchewan.

The North American Lithium mine near Val-d’Or, Quebec (formerly Quebec Lithium) commenced commercial production in early 2018, shipping spodumene concentrate to China for processing into lithium carbonate. Due to a sharp decline in lithium and spodumene concentrate prices later that year, the mine suspended operations in 2019 and sought bankruptcy protection. It was acquired by Sayona Quebec in 2021 in a joint venture between Sayona Mining (Australia) and Piedmont Lithium (United States). The mine started limited production of lithium concentrate in March 2023, with plans to ramp up production throughout 2024, aiming for steady production levels by year-end. The new owners also plan to build a lithium hydroxide or lithium carbonate refinery.

Nemaska Lithium began producing spodumene concentrate at the Whabouchi Mine in Quebec in early 2017. However, production was suspended in 2019, and the mine entered care and maintenance. After filing for bankruptcy, the company was acquired by the Pallinghurst Group in partnership with the Gouvernement du Québec and emerged from creditor protection in 2020. Nemaska plans to restart the mine and build a lithium hydroxide refinery in Bécancour, Quebec. Ford Motor Company entered into a long-term agreement with Nemaska Lithium for the supply of lithium products, which it intends to use in the manufacturing of its electric vehicle batteries.

Canada currently has an estimated 3.2 million tonnes of lithium oxide resources in hard rock deposits. Advancements in technology and processing of lithium brines in Alberta and Saskatchewan may further increase these resources by extracting lithium compounds from oil and gas fields and industrial wastewaters.

International context

Australia led global lithium production in 2023, with five of its mines contributing more than half of the world’s total output. Brine operations in Chile and Argentina and mines in China accounted for most of the remaining production.

China dominates lithium processing, with most of the processed products being used in battery manufacturing.

World mine production of lithium by country, 2023

Ranking	Country	Tonnes	Percentage of the total
1	Australia	74,700	51.0%
2	Chile	38,000	25.9%
3	China	22,600	15.4%
4	Argentina	6,500	4.5%
5	Brazil	2,630	1.8%
6	Zimbabwe	1,030	0.7%
7	Canada	520	0.4%
8	Portugal	380	0.3%
World total		146,450	100.0%

World reserves

Global lithium resources are estimated at 105 million tonnes, with over half located in the salt flats of Bolivia, Chile, and Argentina. Bolivia holds the largest share, but sociopolitical challenges have limited access to its reserves. In contrast, Chile and Argentina, which offer more favourable conditions for investors, rank first and third, respectively, in proven reserves.

Australia, which holds the second-largest proven reserves with 6.2 million tonnes, led global production in 2023 with 74,700 tonnes. Chile accounted for 33.6% of global reserves, while Canada ranked sixth with 930,000 tonnes, representing 3.4% of total reserves.

World reserves of lithium by country, 2023

Ranking	Country	Lithium content (tonnes)	Percentage of the total
1	Chile	9,300,000	33.6%
2	Australia	6,200,000	22.4%
3	Argentina	3,600,000	13.0%
4	China	3,000,000	10.8%
5	United States	1,100,000	4.0%
6	Canada	930,000	3.4%
7	Brazil	390,000	1.4%
8	Zimbabwe	310,000	1.1%
9	Portugal	60,000	0.2%
	Other	2,800,000	10.1%
World total		27,690,000	100.0%

Trade

Exports

• Canada exported 10 tonnes of lithium oxide and hydroxide in 2023, an 84% decrease in quantity from 2022. This represented a total value of $3,190,347, much of which came from Quebec and was exported to France.
• Canada exported 1,566 kg of lithium carbonates in 2023, most of which was from British Columbia and went to the United States.
• Since 2020, the quantity of both lithium carbonate and lithium oxide and hydroxide exports significantly declined from the 41,000 tonnes exported in 2019 and 97,000 tonnes exported in 2018. The decline was due to the Whabouchi and North American Lithium mines in Quebec being suspended following the fall of global lithium prices. In early 2022, a substantial price increase revived interest in lithium production.
• Canada exported $66.6 million of lithium primary cell batteries (non-rechargeable) and lithium-ion batteries globally, 40% of which went to the United States.

Imports

• Canada is a net importer of lithium and lithium products. Canada’s lithium oxide and hydroxide as well as lithium carbonate imports totalled $38.7 million, a 6% increase from $34.5 million in 2022. The U.S. accounted for 90% of the net imports of lithium oxide and hydroxide, whereas Chile accounted for over 39% of the net imports of lithium carbonates.
• Imports of lithium primary cell batteries (non-rechargeable) and lithium-ion batteries in 2023 were $119 million and $1.56 billion, respectively, from $136 million and $1.03 billion in 2022.The United States accounted for 52% of net imports of lithium-bearing batteries, while China accounted for 28%.

Prices

Lithium carbonate spot prices have been volatile over the past decade, driven by soaring demand and a rapid influx of new lithium projects in response. In 2023, the annual average U.S. price for lithium carbonate under fixed contracts was $46,000 per ton, a 32% drop from 2022.

A surge in lithium demand for use in electronics, electric vehicles, and renewable energy storage pushed spot prices to US$24,000 per tonne in 2017. However, a surplus of new lithium projects reaching commercial production in 2017 and 2018 caused prices to plummet to US$12,000 per tonne by late 2018.

The oversupply was primarily fuelled by the development of spodumene mines in Australia—two in 2017 and five more in 2018. By the end of 2019, prices had fallen further to US$7,300 per tonne, and by the close of 2020, they had dropped below US$5,000 per tonne.

Lithium carbonate prices rebounded sharply in 2021, surging to US$26,200 per tonne by November of that year. A year later, they had skyrocketed to US$67,000 per tonne, driven by supply constraints and booming demand for electric vehicles. Lithium hydroxide prices followed a similar trajectory, rising from US$35,300 per tonne in January 2022 to US$78,000 per tonne by November.

However, after this historic price surge, lithium prices saw a steep decline in 2023, largely due to concerns about oversupply, the expiration of Chinese EV subsidies, and weaker-than-expected EV sales globally.

Recycling

Lithium is infinitely recyclable, and with the rising adoption of electric vehicles, recycling has been gaining momentum in Canada. British Columbia’s Toxco-Canada, a long-standing battery recycler since 1992, remains the only facility in the world to offer both primary and secondary lithium battery recycling. In 2019, a lithium battery recycler, Li-Cycle, began operations in Ontario and ramped up to recycling and processing up to 5,000 tonnes of used lithium-ion batteries per year in 2020. In 2024, Lithion completed construction of its first commercial plant in Saint-Bruno-de-Montarville, near Montréal. Several other companies, including Electra Battery Materials and Stelco, also have plans to recycle lithium-ion batteries in Canada.