LITHIUM

(Data in metric tons of lithium content unless otherwise noted)

Domestic Production and Use: The only lithium production in the United States was from a brine operation in
Nevada. Two companies produced a wide range of downstream lithium compounds in the United States from
domestic or imported lithium carbonate, lithium chloride, and lithium hydroxide. Domestic production data were
withheld to avoid disclosing company proprietary data.

Although lithium markets vary by location, global end-use markets are estimated as follows: batteries, 71%; ceramics
and glass, 14%; lubricating greases, 4%; continuous casting mold flux powders, 2%; polymer production, 2%; air
treatment, 1%; and other uses, 6%. Lithium consumption for batteries has increased significantly in recent years
because rechargeable lithium batteries are used extensively in the growing market for portable electronic devices and
increasingly are used in electric tools, electric vehicles, and grid storage applications. Lithium minerals were used
directly as ore concentrates in ceramics and glass applications.

Salient Statistics—United States: 2016 2017 2018 2019 2020e

Production W W W W W
Imports for consumption 3,140 3,330 3,420 2,620 2,900
Exports 1,520 1,960 1,660 1,680 1,400
Consumption, estimated1 3,000 3,000 3,000 2,000 2,000
Price, annual average, battery-grade lithium
carbonate, dollars per metric ton2 8,650 15,000 17,000 12,700 8,000
Employment, mine and mill, number 70 70 70 70 70
Net import reliance3 as a percentage of
estimated consumption >50 >50 >50 >25 >50

Recycling: One domestic company has recycled lithium metal and lithium-ion batteries since 1992 at its facility in
British Columbia, Canada. In 2015, the company began operating the first U.S. recycling facility for lithium-ion vehicle
batteries in Lancaster, OH. Seven other companies located in Canada and the United States have begun recycling, or
intend to begin recycling, lithium metal and lithium-ion batteries to some degree.

Import Sources (2016–19): Argentina, 55%; Chile, 36%; China, 5%; Russia, 2%; and other, 2%.

Tariff: Item Number Normal Trade Relations

12–31–20
Other alkali metals 2805.19.9000 5.5% ad val.
Lithium oxide and hydroxide 2825.20.0000 3.7% ad val.
Lithium carbonate:
U.S. pharmaceutical grade 2836.91.0010 3.7% ad val.
Other 2836.91.0050 3.7% ad val.

Depletion Allowance: 22% (domestic), 14% (foreign).

Government Stockpile:4

FY 2020 FY 2021
Inventory Potential Potential Potential Potential
Material as of 9–30–20 acquisitions disposals acquisitions disposals
Lithium cobalt oxide
(kilograms, gross weight) 750 — — — —
Lithium nickel cobalt aluminum oxide
(kilograms, gross weight) 2,700 — — — —
Lithium-ion precursors
(kilograms, gross weight) — — — — —

Events, Trends, and Issues: Excluding U.S. production, worldwide lithium production in 2020 decreased by 5% to
82,000 tons of lithium content from 86,000 tons of lithium content in 2019 in response to lithium production exceeding
consumption and decreasing lithium prices. Global consumption of lithium in 2020 was estimated to be 56,000 tons of
lithium content, about the same as that of 2019. During the first half of 2020, the economic impact of the global
COVID-19 pandemic was reported to have been a substantial factor in the reduction of customer demand. The
second half of 2020 saw lithium demand increase owing primarily to strong growth in the lithium-ion battery market.

Prepared by Brian W. Jaskula [(703) 648–4908, [email protected]]

 LITHIUM
Spot lithium carbonate prices in China decreased from approximately $7,100 per ton at the beginning of the year to
about $6,200 per ton in November. For large fixed contracts, the annual average U.S. lithium carbonate price was
$8,000 per metric ton in 2020, a 37% decrease from that of 2019. Spot lithium hydroxide prices in China decreased
from approximately $7,800 per ton at the beginning of the year to about $7,000 per ton in November. Spot lithium
metal (99.9% lithium) prices in China decreased from approximately $83,000 per ton at the beginning of the year to
about $71,000 per ton in November.

Five mineral operations in Australia, two brine operations each in Argentina and Chile, and two brine and one mineral
operation in China accounted for the majority of world lithium production. Owing to overproduction and decreased
prices, several established lithium operations postponed capacity expansion plans. Junior mining operations in
Australia and Canada ceased production altogether.

Lithium supply security has become a top priority for technology companies in the United States and Asia. Strategic
alliances and joint ventures among technology companies and exploration companies continued to be established to
ensure a reliable, diversified supply of lithium for battery suppliers and vehicle manufacturers. Brine-based lithium
sources were in various stages of development in Argentina, Bolivia, Chile, China, and the United States;
mineral-based lithium sources were in various stages of development in Australia, Austria, Brazil, Canada, China,
Congo (Kinshasa), Czechia, Finland, Germany, Mali, Namibia, Peru, Portugal, Serbia, Spain, and Zimbabwe; and
lithium-clay sources were in various stages of development in Mexico and the United States.

World Mine Production and Reserves: Reserves for Argentina, Australia, Canada, Chile, China, the United States,
Zimbabwe, and other countries were revised based on new information from Government and industry sources.

Mine production Reserves5

2019 2020e
United States W W 750,000
Argentina 6,300 6,200 1,900,000
Australia 45,000 40,000 64,700,000

Brazil 2,400 1,900 95,000

Canada 200 — 530,000
Chile 19,300 18,000 9,200,000
China 10,800 14,000 1,500,000
Portugal 900 900 60,000
Zimbabwe 1,200 1,200 220,000
Other countries7 — — 2,100,000
World total (rounded) 886,000 882,000 21,000,000

World Resources:5 Owing to continuing exploration, identified lithium resources have increased substantially
worldwide and total about 86 million tons. Lithium resources in the United States—from continental brines,
geothermal brines, hectorite, oilfield brines, and pegmatites—are 7.9 million tons. Lithium resources in other countries
have been revised to 78 million tons. Lithium resources are Bolivia, 21 million tons; Argentina, 19.3 million tons; Chile,
9.6 million tons; Australia, 6.4 million tons; China, 5.1 million tons; Congo (Kinshasa), 3 million tons; Canada,
2.9 million tons; Germany, 2.7 million tons; Mexico, 1.7 million tons; Czechia, 1.3 million tons; Serbia, 1.2 million tons;
Peru, 880,000 tons; Mali, 700,000 tons; Zimbabwe, 500,000 tons; Brazil, 470,000 tons; Spain, 300,000 tons; Portugal,
270,000 tons; Ghana, 90,000 tons; and Austria, Finland, Kazakhstan, and Namibia, 50,000 tons each.

Substitutes: Substitution for lithium compounds is possible in batteries, ceramics, greases, and manufactured glass.
Examples are calcium, magnesium, mercury, and zinc as anode material in primary batteries; calcium and aluminum
soaps as substitutes for stearates in greases; and sodic and potassic fluxes in ceramics and glass manufacture.

e
Estimated. W Withheld to avoid disclosing company proprietary data. — Zero.
1
Defined as production + imports – exports + adjustments for Government and industry stock changes. Rounded to one significant digit to avoid
disclosing company proprietary data.
2
Source: Industrial Minerals, lithium carbonate, large contracts, delivered continental United States.
3
Defined as imports – exports + adjustments for Government and industry stock changes.
4
See Appendix B for definitions.
5
See Appendix C for resource and reserve definitions and information concerning data sources.
6
For Australia, Joint Ore Reserves Committee-compliant reserves were 2.8 million tons.
7
Other countries with reported reserves include Austria, Congo (Kinshasa), Czechia, Finland, Germany, Mali, and Mexico.
8Excludes U.S. production.

U.S. Geological Survey, Mineral Commodity Summaries, January 2021