What if these countries stop Lithium production

Lithium, as we all know, is a metal which is used in rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles.

Australia is the world’s top producer of lithium, which is extracted directly from spodumene, a mineral found in hard-rock mines.

Over the past ten years, the nation’s output increased significantly. Australia produced 13,000 metric tons of lithium in 2013, but by 2023, that amount had dropped to 86,000 metric tons.

Chile is ranked second, although its growth has been slower. Chile’s output increased from 13,500 metric tons in 2013 to 44,000 metric tons in 2023. The South American nation extracts lithium from brine, in contrast to Australia.

Over the years, China—which also extracts lithium from brine—has been contacting Chile. The nation produced 33,000 metric tons last year, up from 4,000 metric tons in 2013.

Three Chinese companies are among the top lithium mining companies, and Chinese companies have increased their ownership shares in lithium producers worldwide.

Tianqi Lithium, owns a sizable portion of Greenbushes, the largest hard-rock lithium mine in the world, which is located in Australia.

The fourth nation on our list, Argentina, has received investments from other nations to boost its output, and it has more than tripled its production over the past ten years.

The market for lithium has experienced a glut recently as a result of all the major producers raising output to meet the demand from the clean energy sector, particularly for electric vehicle (EV) batteries. This has led to a price collapse of over 80% from a record high set in late 2022.

If all these countries decide to stop lithium production then many green technologies, such as electric vehicles and renewable power plants will be halted, and will face heavy loss.

The lithium is also used as a mood stabilizing medicine. If the production is stopped this will create havoc in the medicine industry. As there won’t be any  alternative to the medicine.