Lithium in the World: Opportunities vs. Reality

Europe has significant lithium reserves but only extracts a fraction of them. The estimated total lithium reserves in the EU amount to 5.8 million tons, which is comparable to China's 6.8 million tons. China is one of the world leaders in lithium mining (33,000 tons annually, ranking 3rd globally) and is the dominant global processor of lithium. In the EU, lithium is only mined in Portugal (380 tons annually). A major shift could come with the start of lithium mining in Serbia, which has estimated reserves of 1.2 million tons and a potential annual extraction of 58,000 tons. However, both the mining in Serbia and the increase in mining in Portugal face public opposition. The International Energy Agency estimates that the demand for lithium might grow by up to 40 times by 2040. According to UNCTAD, to achieve the 2030 net-zero emission targets, the industry may need around 70 new lithium mines. The largest producer of lithium is Australia (86,000 tons annually). The largest lithium reserves are found in the so-called lithium triangle (Argentina-Chile-Bolivia). Approximately two-thirds of the world's lithium supply is processed in China. Over 80% of the world's lithium consumption is used in battery production, with two-thirds of lithium-ion batteries being produced in China. Only a fraction of lithium is used in other areas (ceramics and glassmaking, lubricants, healthcare, etc.).