Excluding production from the United States, world lithium production in 2021 increased 21%, to approximately 100,000 tons, with various projects under construction in several countries, including Mexico, according to the United States Geological Survey (USGS, for its English acronym).
The increase occurred in response to strong market demand for lithium-ion batteries and rising lithium prices. At the same time, the USGS estimated global lithium consumption in 2021 at 93,000 tons, an increase of 33% over 2020.
The only lithium production in the United States was from a brine operation in Nevada. Two companies produced a wide range of lithium compounds downstream in the United States from lithium carbonate, lithium chloride, and lithium hydroxide (domestic or imported). Domestic production data was withheld to prevent disclosure of company-owned data.
Four mineral operations in Australia, two brine operations each in Argentina and Chile, and two brine operations and one mineral operation in China accounted for the majority of global lithium production.
In addition, smaller operations in Brazil, China, Portugal, the United States and Zimbabwe also contributed to global lithium production. Due to the resurgence in demand and the increase in lithium prices in 2021, lithium operations established throughout the The world resumed capacity expansion plans that were postponed in 2020 in response to the global Covid-19 pandemic.
The USGS highlighted that the security of lithium supply has become a priority for technology companies in Asia, Europe and the United States. Therefore, strategic alliances and joint ventures between technology companies and exploration companies continued to be established to guarantee a reliable and diversified supply.
Brine-based lithium sources were in various stages of development in Argentina, Bolivia, Chile, China, and the United States.
Meanwhile, mineral-based sources of lithium were found in various stages of development in Australia, Austria, Brazil, Canada, China, Congo, Czech Republic, Finland, Germany, Mali, Namibia, Peru, Portugal, Serbia, Spain, the United States. States and Zimbabwe.
Finally, lithium-clay sources were in various stages of development in Mexico and the United States; and a source of searlesite was under development in the United States.
Spot prices for lithium carbonate in China (cost, insurance and freight to North Asia) increased from about $7,000 per tonne in January 2021, to about $26,200 in November.
In fixed contracts, the annual average price of lithium carbonate in the United States was $17,000 per ton in 2021, more than double that of 2020.
Spot prices for lithium hydroxide in China (North Asia) rose from around $9,000 per tonne in January to around $27,400 in November last year.
Finally, spodumene (6% lithium oxide) spot prices in China rose from $450 per ton in January to $2,300 in November, and lithium metal (99.9% lithium) prices in China climbed from $77,000 per ton in January to $97,000 in July.