Australian lithium export revenue drops 74% over the past year

February 03, 2025 — Australian export revenue from lithium plummeted to under A$5 billion in the year to November 2024 from A$ 19.5 billion recorded in the same timeframe a year earlier, based on the export data made available by the Australian Department of Foreign Affairs and Trade. This is a striking 74% decline within just one year.

This significant drop can be attributed to a sharp decrease in lithium prices throughout 2024. According to the Australian Government's Department of Industry, Science, and Resources, the international price of spodumene fell from US$3,730 per tonne in 2023 to an estimated US$964 per tonne in 2024. Similarly, the price of lithium hydroxide saw a drastic decline, decreasing from US$50,288 per tonne to an estimated US$12,167 per tonne over the same period.

Australia retains its position as the world's largest lithium producer, followed closely by China and Chile. However, according to Australian Government's Department of Industry, Science, and Resources, forecasts indicate that Australia's share of global lithium extraction will decrease from 37% in 2024 to 32% by 2026, while China's share is expected to rise from 24% to 27% over the same timeframe.

Mineral resources in Australia: The spotlight on lithium production

Australia is abundant in mineral resources, housing some of the largest reserves of various commodities worldwide. Among these, lithium has emerged as a vital mineral due to its skyrocketing global demand.

Australia's extensive mineral wealth has significantly contributed to its economic development. The nation is a leading producer of vital commodities such as iron ore, gold, and bauxite. These resources have supported a thriving mining sector, playing a crucial role in the country's exports and overall economic success. However, as the world pivots toward renewable energy and electric vehicles, lithium has taken center stage as an increasingly essential mineral.

Often referred to as "white gold," lithium is a critical element in batteries that power electric vehicles, smartphones, and various electronic devices. Australia possesses a substantial share of the world’s lithium reserves, establishing it as a major contender in the global lithium market. Over recent years, lithium production in Australia has surged, driven by the escalating demand for batteries.

Lithium mining predominantly occurs in Western Australia, where several large-scale projects are currently in progress. These projects focus on extracting lithium-bearing minerals, such as spodumene, from open-pit mines. The extracted minerals are then processed to create lithium carbonate or lithium hydroxide, both of which are essential for battery manufacturing.

The growth of lithium production in Australia has yielded numerous benefits, including job creation, economic expansion, and a strengthened position as a key supplier of this critical mineral amid the global shift towards clean energy. Nonetheless, the lithium mining sector also faces various challenges. Environmental issues, such as water consumption and habitat destruction, must be addressed to promote sustainable mining practices. Furthermore, the industry must contend with fluctuating global lithium prices and competition from other lithium-producing countries.

Major lithium producers in Australia

Several companies dominate the Australian lithium market, each contributing significantly to the sector's dynamics.

Pilbara Minerals

Pilbara Minerals is an ASX-listed company that operates the largest independent hard rock lithium operation in the world. Located in the resource-rich Pilbara region of Western Australia, Pilgangoora produces spodumene and tantalite concentrates. Founded in 2013, Pilbara Minerals has swiftly earned its reputation as a pioneer in the lithium sector, achieving production status in less than four years.

Mineral Resources Limited (MinRes)

Mineral Resources Limited (MinRes) is a versatile Australian mining company with a significant focus on lithium. Identifying lithium as a key commodity over ten years ago, the company has strategically developed a portfolio of high-grade lithium assets mainly situated in Western Australia.

IGO Limited

IGO Limited has elevated its focus on commodities pivotal to the clean energy transition, particularly lithium. The company’s partnership with Tianqi Lithium Corporation led to the creation of Tianqi Lithium Energy Australia (TLEA), which owns substantial lithium assets.

Liontown Resources Limited

Liontown Resources Limited has emerged as a significant force in the global lithium market with its focus on high-quality lithium projects. Its flagship Kathleen Valley Lithium Project is expected to be among the world’s largest lithium mines.

Albemarle Corporation

As a global leader in lithium production, Albemarle Corporation greatly values its operations in Australia, focusing on extracting and processing high-quality lithium.

The decline in Australia’s lithium exports reflects significant shifts in global market dynamics, driven primarily by falling prices. However, Australia's lithium sector remains robust, populated by major companies like Pilbara Minerals, Mineral Resources Limited, IGO Limited, Liontown Resources, and Albemarle Corporation. These organizations are strategically positioned to navigate the evolving landscape, leveraging their resources and sustainable practices to meet the growing global demand for lithium essential for the electric vehicle and clean energy markets.

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