Lithium: Characteristics
The lightest metal, sold as chemicals not metal
What this tab covers The supply and physical characteristics of the commodity. Supply: current production, inventories and stocks, capacity utilisation, geographic and producer concentration, how fast supply responds to price, the project pipeline and capital spending, and logistics and export flows. Material: the physical and chemical properties that set its grade, price and end uses (for example purity and conductivity for metals, API gravity, sulfur and energy content for fuels, moisture, protein and fibre quality for crops).Supply volume characteristics
| Characteristic | Figure | What it means | Source |
|---|---|---|---|
| Current production volume | about 290 kt Li (about 1.54 Mt LCE) mine output in 2025, excluding the US; 222 kt in 2024 | Output rose 31% in 2025, faster than consumption (263 kt, up 20%). Australia mined 92 kt, China 62 kt and Chile 56 kt. | USGS MCS 2026, Lithium |
| Inventory and stock levels | not published as a total; stocks sit in Chinese converters, cathode makers and GFEX warehouses | The 2021-22 boom fed on stockpiling across China's chain, and destocking deepened the 2023-25 bust. Consumption of 263 kt a year means one month equals about 22 kt Li. | USGS MCS 2026; GFEX (qualitative) |
| Capacity utilisation | not published globally; China made 103,600 t of lithium carbonate in April 2026 | Chinese converters using imported spodumene cut operating rates in spring 2026 on tight feedstock, while lepidolite lines held steady. Conversion capacity in China far exceeds feed, so utilisation swings with ore supply. | Mysteel survey (May 2026) |
| Geographic and producer concentration | Australia 38.2%; top-3 (Australia, China, Chile) 79.7%; HHI 2,442 (mine, Li2O basis) | Refining is far more concentrated: China supplied 80% of traded lithium hydroxide by value in 2024. Leading producers are SQM (234 kt LCE), Ganfeng (182 kt LCE) and Rio Tinto (57 kt LCE). | World Mining Data 2024; UN Comtrade 2024; company 2025 reports |
| Supply elasticity | moderate: hard-rock mines 2-5 years; brine projects 5-10 years (indicative) | Hard-rock output responded quickly to the 2021-22 price spike, which is why supply overshot. Brine ponds take a year or more to concentrate before first sales. | USGS MCS 2026; industry norms (indicative) |
| Project pipeline and CapEx | large but price-sensitive; expansions in Argentina, Brazil, Canada, Chile, China, Mali, the US and Zimbabwe in 2025 | Examples: Rio Tinto's Rincon (Argentina, about 60 ktpa LCE planned), Lithium Americas' Thacker Pass (US, 40 ktpa phase 1, targeted late 2027) and new Mali mines (Mali rose from 770 t to 9,400 t Li in 2025). Several projects were postponed in 2025 on low prices. | USGS MCS 2026; company announcements (indicative) |
| Logistics and export flows | lithium carbonate exports (HS 283691) $3.1 billion in 2024: Chile 75.3%; China 68.9% of imports | Spodumene concentrate ships in bulk from Port Hedland and other West Australian ports to China. Chilean and Argentine carbonate leaves via Antofagasta and Pacific ports. Hydroxide flows from China to Korea (62.6% of imports) and Japan (24.3%). The chokepoint is Chinese conversion capacity. | UN Comtrade 2024 (HS 283691, 282520) |
Material characteristics Metal / hard commodity
Lithium is the lightest metal and has the most negative electrode potential, so it stores more energy per kilogram than any other battery metal. Commercially it is sold as chemicals, not metal: spodumene concentrate graded by Li2O content, and battery-grade carbonate or hydroxide graded by purity. Trace impurities such as sodium, iron and magnetic particles decide whether a cathode maker will accept a lot.
| Property | Value / specification | Why it matters | Source |
|---|---|---|---|
| Concentrate grade | SC6 spodumene: about 6% Li2O; prices quoted per tonne at 6% basis | Sets payable value and conversion cost | Fastmarkets / Benchmark price specifications |
| Battery-grade carbonate purity | at least 99.5% Li2CO3 with tight limits on Na, Ca, Mg, Fe and SO4 (indicative) | Off-spec or technical-grade material sells at a discount | Chinese standard YS/T 582 (indicative) |
| Battery-grade hydroxide | LiOH.H2O at least 56.5% LiOH (indicative) | Needed for high-nickel NMC cathodes | Chinese standard GB/T 26008 (indicative) |
| Magnetic impurities | typically below about 1 ppm (indicative) | Metal particles cause cell short circuits | Cathode maker specifications (indicative) |
| Electrochemistry | standard potential -3.04 V; theoretical capacity 3,860 mAh/g for lithium metal | Why lithium-ion cells have high energy density | CRC Handbook |
| Density and melting point | 0.534 g/cm3; melts at 180.5 C | Lightest metal; lithium metal needs inert handling | CRC Handbook |