Which Country Holds the Largest Lithium Reserves? A Deep Dive into Global Battery Metal Supply

The global lithium market is experiencing unprecedented growth, driven by the explosive expansion of electric vehicles and energy storage systems. But which country has the most lithium reserves, and does that translate into market dominance? The answer is more nuanced than simple reserve numbers suggest.

The Global Lithium Reserve Snapshot

As of 2024, total worldwide lithium reserves stand at 30 million metric tons. However, these reserves are highly concentrated. Just four nations—Chile, Australia, Argentina, and China—control approximately 73% of global deposits, reshaping geopolitical dynamics around battery technology and clean energy transitions.

Benchmark Mineral Intelligence forecasts that lithium-ion battery demand will surge dramatically, with EV and energy storage system (ESS) related consumption both expected to increase by over 30% year-on-year through 2025. This trajectory makes understanding reserve distribution critical for investors and policymakers alike.

Chile: The Undisputed Reserve Heavyweight

Chile dominates global lithium reserves with 9.3 million metric tons—nearly one-third of all known deposits worldwide. The Salar de Atacama region alone accounts for approximately 33% of the world’s lithium reserve base, hosting what’s considered the most “economically extractable” lithium on the planet.

Despite holding the largest stockpile, Chile ranked second in production during 2024, generating 44,000 metric tons. Major operators SQM and Albemarle control most operations through their presence in the Atacama salt flats. In 2023, Chilean President Gabriel Boric initiated partial nationalization efforts, bringing state-owned Codelco into controlling positions across all Atacama operations—a move designed to capture greater value from the nation’s mineral wealth while supporting the transition to sustainable economies.

The country’s regulatory framework, while protective of national interests, has constrained its global market share relative to its reserve abundance. Looking ahead, the 2025 bidding process for seven lithium operation contracts across six salt flats will introduce new competition, including a Codelco-Eramet-Quiborax consortium.

Australia: Production Powerhouse with Hard-Rock Advantages

Australia’s 7 million metric tons of reserves rank second globally, yet the country achieved the world’s largest lithium production in 2024. This apparent paradox reveals a critical truth: reserve size doesn’t equal production efficiency.

Australian deposits differ fundamentally from Chilean and Argentine sources—they exist as hard-rock spodumene rather than brines, requiring different extraction methods. The Greenbushes mine, operated through a joint venture involving Talison Lithium (partnered with Tianqi Lithium and Albemarle), has produced lithium continuously since 1985 and remains a cornerstone of global supply.

Recent price volatility has prompted some operators to halt or reduce activities pending market stabilization. Simultaneously, emerging research published by the University of Sydney in collaboration with Geoscience Australia reveals untapped lithium potential in Queensland, New South Wales, and Victoria—regions previously overshadowed by Western Australia’s dominance. These findings suggest Australia’s production runway extends well beyond current major mining centers.

Argentina: Rising Output, Strategic Positioning

Argentina holds 4 million metric tons of reserves and ranks fourth in global production at 18,000 metric tons annually. As part of the “Lithium Triangle” (alongside Chile and Bolivia), Argentina hosts more than half of world’s total lithium reserves.

The government’s commitment intensified with a US$4.2 billion investment pledge in 2022 aimed at expanding production capacity. This strategy bore fruit in 2024, when Argosy Minerals received approval to expand Rincon salar operations, scaling production from 2,000 to 12,000 metric tons annually. Mining giant Rio Tinto announced an even more ambitious US$2.5 billion expansion plan, targeting capacity increases from 3,000 to 60,000 metric tons by 2028.

Argentina’s competitive positioning stems from cost efficiency—the nation maintains profitable production even during low-price environments. With approximately 50 advanced lithium mining projects in development, the country is positioned as a significant future supplier.

China: Reserves, Processing Dominance, and Market Strategy

China commands 3 million metric tons of proven lithium reserves, ranking fourth among major reserve holders. However, this figure undersells China’s actual influence on global markets. The country produced 41,000 metric tons in 2024 while simultaneously controlling lithium-ion battery manufacturing, processing facilities, and refining operations—effectively governing the value chain beyond raw material extraction.

China’s deposit composition mirrors its strategic flexibility: brines constitute the majority, but spodumene and lepidolite hard-rock reserves provide diversification. The nation imports significant lithium from Australia to feed its massive electronics and EV manufacturing sectors.

In late 2024, US State Department officials alleged China employs predatory pricing strategies to eliminate non-Chinese competitors—a claim reflecting rising tensions over supply chain control. More recently, Chinese media reported a dramatic reserve expansion, claiming national deposits now represent 16.5% of global resources (up from 6%), including a newly discovered 2,800-kilometer lithium belt in western regions with proven reserves exceeding 6.5 million tons of lithium ore and potential resources surpassing 30 million tons.

The Secondary Reserve Tier

Beyond the “Big Four,” several nations hold meaningful stockpiles: Canada (1.2 million MT), the United States (1.8 million MT), Zimbabwe (480,000 MT), Brazil (390,000 MT), and Portugal (60,000 MT—Europe’s largest). Portugal produced 380 metric tons in 2024, signaling Europe’s emerging role in battery supply chains.

Reserves vs. Production: The Critical Distinction

The most important insight for investors: which country has the most lithium reserves tells only half the story. Reserve abundance doesn’t guarantee market influence or profitability. Australia produces more despite holding fewer reserves than Chile. Argentina achieves cost competitiveness through operational efficiency. China controls processing and manufacturing despite modest reserve rankings.

Future production growth will depend on technological efficiency, capital investment, regulatory frameworks, and price environments—not reserve size alone. As global lithium demand accelerates through the coming decade, nations with strategic combinations of abundant reserves, operational expertise, and integrated supply chains will emerge as the true market leaders.