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).

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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.

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.

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 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.