Inside the Race to Control the World’s Lithium Supply
SkimNews Take
The rapid increase in global lithium output, driven by demand, has not diluted China's market share, but rather solidified its control over both production and crucial refining capacity.
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- China dominates lithium mining and refining, projected to supply 32% of global production domestically and 18% overseas by 2027, controlling about half the market and 81% of refining.
- United States aims to reduce reliance on China, with the DOE buying 5% stakes in Lithium Americas and its Thacker Pass JV with GM, targeting the largest Western Hemisphere lithium source.
- International Energy Agency notes lithium‑ion batteries are now central to automotive, power‑grid flexibility, data‑centre backup, and AI, fueling a $150 billion market in 2025.
- U.S. Geological Survey reports the South American “Lithium Triangle” holds 53% of reserves and, with Peru, accounts for 67% of proven reserves, supplying roughly half of global output.
- Lithium Americas Corp and General Motors partner on Thacker Pass, expected to become the biggest lithium producer in the Western Hemisphere.
- Energy Secretary Chris Wright highlighted that the US produces less than 1% of global lithium despite large deposits, underscoring the urgency of new mining projects.
Why it matters: By 2027 China could control half of global lithium production, limiting supply options for US automakers.
