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Lithium facts

Lithium and its compounds enable clean energy and transportation through rechargeable batteries for electric vehicles and electronic products and as key ingredients in low-melting point glasses and lubricants. Lithium compounds are produced in a variety of forms including lithium carbonate (Li2CO3), lithium oxide (Li2O), and lithium hydroxide (LiOH).

Key facts

  • Manufacturing of rechargeable batteries for electronics, electric vehicles, and grid storage is the largest global use for lithium, representing 74% of total demand.
  • The Government of Canada has identified lithium as a critical mineral because it is a key material in the renewable energy transition, and Canada has the potential to be a supplier.
  • Canada does not currently produce lithium but has large hard rock spodumene deposits and brine-based lithium resources.
  • Australia is the world’s largest lithium producer, accounting for nearly half of global production in 2021. Bolivia, Chile and Argentina (the “lithium triangle”) have the largest estimated resources, with nearly 50 million tonnes of lithium between the three countries.

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. Demand for lithium ion batteries has grown significantly in recent years, driving global exploration and enabling new lithium projects to be considered. Batteries accounted for 74% of total demand in 2021.

Also used in glass products, lithium increases the durability, corrosion resistance, and thermal resistance for use at extreme temperatures. It is used in such items as glass-ceramic stovetops, glass containers, specialty glass, and fibreglass. Because of its natural properties, lithium contributes to improved process productivity and energy savings 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.

Lithium, global uses, 2021

circular chart
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This circular chart shows the major global uses of lithium as of 2021. The largest use was for batteries (74%); followed by ceramics and glass (14%); lubricating greases (3%); continuous casting fluxes (2%); and others (7%).

Production

Canada had limited production of lithium from 2014 to 2019 and very little in 2021. Several companies are currently working to develop lithium projects from traditional hard rock mining to unconventional sources such as oilfield brines and industrial wastewaters, in Ontario, Quebec, Alberta, Manitoba and Saskatchewan.

These projects range from early exploration to a pre-production stage. There was some production of lithium as a by-product of tantalum at the Tanco Mine in Manitoba, which began in 2021. This lithium is shipped internationally for processing.

The North American Lithium mine near Val-d’Or, Quebec, formerly the Quebec Lithium mine, reached commercial production in early 2018 and shipped spodumene concentrate to refineries in China for processing into lithium carbonate. Prices of lithium products and spodumene concentrate fell sharply later that year when global spodumene capacity nearly doubled, primarily in Australia.

North American Lithium suspended production in 2019, sought bankruptcy protection, and was acquired by Sayona Québec in 2021, a joint venture between Sayona Mining (Australia) and Piedmont Lithium (United States). The new owners plan to restart the North American Lithium mine, develop other mining projects in Quebec, and build a lithium hydroxide or lithium carbonate refinery.

After several years of exploration and construction, Nemaska Lithium produced its first spodumene concentrate at the Whabouchi Mine in Quebec in early 2017. The company suspended production in 2019, and the mine was put on care and maintenance. After seeking bankruptcy protection, Nemaska was acquired by the Pallinghurst Group in partnership with the Government of Quebec and emerged from creditor protection in 2020. The company plans to restart the mine and build a lithium hydroxide refinery in Bécancour, Quebec.

Canada currently has an estimated 3.2 million tonnes of lithium oxides resources (measured and indicated) at hard rock deposits. Lithium brines in Alberta and Saskatchewan could increase these resources as technology and processing are advanced to extract lithium compounds economically from oil and gas fields, including from existing infrastructure and industrial wastewaters.

Canadian lithium projects, 2021-2022

map
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This map shows the location, status and stage of Canadian lithium projects and mines.

Quebec

  • The North American Lithium project is active at the pre-production stage.
  • The Whabouchi project is active at the pre-production stage.
  • The Authier project is active at the advanced stage.
  • The James Bay project is active at the advanced stage.
  • The Rose project is active at the advanced stage.
  • The Moblan project is active at the exploration stage.
  • The Sirmac project is active at the exploration stage.

Ontario

  • The Pakeagama Lake project is active at the advanced stage.
  • The Separation Rapids project is active at the advanced stage.
  • The Georgia Lake project is active at the advanced stage.
  • The Seymour Lake project is active at the exploration stage.
  • The Jackpot project is active at the exploration stage.

Manitoba

  • The Tanco Mine is mining tantalum with lithium as a by-product. The ore is exported for processing.
  • The Thompson Brothers project is active at the advanced stage.
  • The Mayville Lithium project is active at the exploration stage.
  • The Lithium Two project is active at the exploration stage.
  • The Zoro 1 project is active at the exploration stage.

Saskatchewan

  • The Prairie Lithium brine project is active at the advanced stage.

Alberta

  • The SBH Black Shale project is on hold at the advanced stage.
  • The Clearwater brine project is active at the advanced stage.
  • The Fox Creek brine project is active at the exploration stage.
  • The Sturgeon Lake brine project is active at the exploration stage.

International context

Australia is the global leader in lithium production, with five mines accounting for nearly half of the lithium production in 2021. Brine operations in Chile and Argentina and mines in China accounted for most of the remaining forecasted production in 2021.

China is the global leader in lithium processing, with most of the processed products being used in battery production.

World mine production of lithium by country, 2021
Ranking Country Tonnes Percentage of the total
1 Australia 55,000 52.5%
2 Chile 26,000 24.8%
3 China 14,000 13.4%
4 Argentina 6,200 5.9%
5 Brazil 1,500 1.4%
6 Zimbabwe 1,200 1.1%
7 Portugal 900 0.9%
World total   104,800 100.0%

World mine production of lithium, 2012–2021 (p)

bar graph
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This bar graph shows the world's annual mine production of lithium from 2012 to 2021. Lithium production was 35,000 tonnes in 2012 and stayed relatively steady until 2015 when it was 31,500 tonnes. After surging demand for lithium batteries to support the growing market for electronics, electric vehicles, and renewable energy storage, mine production increased in 2016 to 38,000 tonnes. Mine production increased significantly to 69,000 tonnes in 2017 and to 95,000 tonnes in 2018.

After the surplus of supply hit the market in 2017 and 2018, prices decreased, which lead to decreased production in 2019 and 2020 of 86,000 and 82,500 tonnes, respectively. The prices recovered in 2021, as did lithium demand, driving up production to a record high of over 104,000 tonnes.

World reserves

More than half of the estimated global lithium resources are located in the salt flats of Bolivia, Chile and Argentina, much of that in Bolivia. It is estimated that there are 89 million tonnes of lithium resources globally. Sociopolitical conditions have affected access to Bolivia’s resources while Chile and Argentina, which are more investor-friendly, are ranked first and third, respectively, for proven reserves.

Australia ranks second in the world for proven reserves with 5.7 million tonnes and first for production with 55,000 tonnes produced in 2021. Chile accounted for 41% of global lithium reserves in 2021, whereas Canada ranked sixth in the world with 3% of reserves at 681,000 tonnes.

World reserves of lithium by country, 2021
Ranking Country Lithium content (tonnes) Percentage of the total
1 Chile 9,200,000 41.0%
2 Australia 5,700,000 25.4%
3 Argentina 2,200,000 9.8%
4 China 1,500,000 6.7%
5 United States 750,000 3.3%
6 Canada 681,000 3.0%
7 Zimbabwe 220,000 1.0%
8 Brazil 95,000 0.4%
9 Portugal 60,000 0.3%
  Other 2,019,000 9.0%
World total   22,425,000 100.0%

Trade

Exports

  • Canada exported 4 tonnes of lithium carbonates in 2021 after exporting almost none in 2020. Most of it was from Ontario and went to India.
  • Canada exported 45 tonnes of lithium oxide and hydroxide in 2021, at a total value of $131,000. The same amount was exported in 2020, almost all of which came from Quebec and was exported to China. The quantities exported in the last two years were a significant decline from the 41,000 tonnes exported in 2019 and 97,000 tonnes exported in 2018.
  • The decline in both lithium carbonate exports and lithium oxide and hydroxide exports in 2020 and 2021 was due to the Whabouchi and North American Lithium mines in Quebec being suspended following the fall of global lithium prices.
  • Canada domestically exported $38.6 million of lithium primary cell and batteries (non-rechargeable) and lithium-ion batteries globally, 56% 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 carbonates imports totaled $21.7 million, a small increase from $20.5 million in 2020. Russia and China accounted for over 60% of the net imports of lithium oxide and hydroxide, whereas Chile accounted for over 65% of the net imports of lithium carbonates.
  • Imports of lithium primary cells and batteries (non-rechargeable) and lithium-ion batteries were $92 million and $741 million, respectively, up from $85 million and $519 million in 2020. China and the Unites accounted for over 70% of the net imports of lithium-bearing batteries.

Prices

Lithium carbonate spot prices have been volatile over the past decade because of soaring demand and a sudden surplus of new lithium development that developed in response. By 2021, demand increased again, leading to a surge in lithium carbonate spot prices as the year continued, reaching US$27,400 per tonne by November 2021.

A surge in lithium demand for use in electronics, electric vehicles and renewable energy storage led to a spike in spot carbonate prices up to US$24,000 per tonne in 2017. After a surplus of new lithium projects reached commercial production in 2017 and 2018, spot prices crashed to a low of US$12,000 per tonne by the end of 2018.

The surplus was driven primarily by new spodumene mines being considered in Australia – two in 2017 and five more in 2018. Prices dropped further to US$7,300 per tonne by the end of 2019 and less than US$5,000 per tonne by the end of 2020.

Lithium carbonate spot prices surged again from US$7,000 per tonne in January 2021 to US$26,200 per tonne by November 2021. Prices continue to rise because of supply constraints and soaring demand for electric vehicles. Spot lithium hydroxide prices also increased significantly from US$9,000 per tonne in January 2021 to US$27,400 per tonne in November 2021.

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. A long-time battery recycler, Toxco-Canada, in British Columbia is the only facility in the world that offers both primary and secondary lithium battery recycling. Toxco-Canada has been recycling batteries since 1992.

Notes and sources

Totals may be different because of rounding.

All dollars are Canadian unless otherwise indicated.

Lithium refers to lithium metal unless otherwise specified.

Uses

  • Lithium, global uses, 2021
    • United States Geological Survey, Mineral Commodity Summaries 2022

Production

  • Canadian lithium projects, 2021–2022
    • Natural Resources Canada, compiled from company reports

International context

  • World mine production of lithium by country, 2021
    • United States Geological Survey, Mineral Commodity Summaries 2022
  • World mine production of lithium, 2012–2021 (p)
    • United States Geological Survey, Mineral Commodity Summaries 2014–2022

World reserves

  • World reserves of lithium by country, 2021
    • United States Geological Survey, Mineral Commodity Summaries 2022
    • Canada's reserves: Natural Resources Canada, S&P Global Market Intelligence and company technical reports

Trade

  • Natural Resources Canada; Statistics Canada

Prices

  • United States Geological Survey, Mineral Commodity Summaries 2018-2021

Recycling

  • Company reports
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