Interested in lithium-mining companies? We break down the operations and news of the world's largest lithium producers by market cap.
For a long time, most of the world's lithium was produced by an oligopoly of producers often referred to as the Big Three: Albemarle (NYSE:ALB), Sociedad Quimica y Minera de Chile (SQM) (NYSE:SQM) and Arcadium Lithium (NYSE:ALTM), formerly called Livent.
These US-listed companies remain major entities in the lithium sector; however, the space has expanded significantly in recent years, and interested investors should cast a wider net to look at global companies — in particular those listed in Australia and China, as companies in both countries have become major players in the industry.
While Australia has long been a top-producing country when it comes to lithium, China has risen quickly to become not only the top lithium processor and refiner, but also a major miner of the commodity. In fact, China was the third largest lithium-producing country in 2023 in terms of mine production, behind Australia and Chile.
Chinese companies are mining in other countries as well, including top producer Australia, where a few are part of major lithium joint ventures. For example, Australia''s largest lithium mine, Greenbushes, is owned and operated by Talison Lithium, which is 51 percent controlled by Tianqi Lithium Energy Australia, a joint venture between China''s Tianqi Lithium (SZSE:002466,HKEX:9696) and Australia''s IGO (ASX:IGO,OTC Pink:IPDGF). The remaining 49 percent stake in Talison is owned by Albemarle. Joint ventures can offer investors different ways to get exposure to mines and jurisdictions.
Mergers and acquisitions are common in the lithium space, with the biggest news in the industry recently being Allkem and Livent's announcement of a US$10.6 billion merger of equals in May 2023. The resultant company, Arcadium Lithium, now has a production capacity of 248,000 metric tons (MT) of lithium carbonate equivalent per year.
As for Chile, the country's lithium landscape is changing following the announcement of its National Lithium Strategy in mid-2023, which will result in future lithium projects having public-private partnerships.
All in all, lithium investors have a lot to keep an eye on as the space continues to shift. Read on for an overview of the current top lithium-producing firms by market cap. Data was current as of September 13, 2024.
Biggest lithium-mining stocks 1. SQM (NYSE:SQM)Company Profile
Market cap: US$10.66 billion Share price: US$38.38
In Chile, SQM sources brine from the Salar de Atacama; it then processes lithium chloride from the brine into lithium carbonate and hydroxide at its Salar del Carmen lithium plants near Antofagasta. SQM is expanding production at the Salar del Carmen from 180,000 MT to 210,000 MT starting this year. To help lessen its environmental impact, the company has announced it will invest US$1.5 billion into the Salar Futuro project, a technology upgrade that includes advanced evaporation technologies, direct lithium extraction and a seawater and desalination plant.
Chile's aforementioned National Lithium Strategy has created some uncertainty for SQM, but the government has stated it will respect its current contracts, which run through 2030. In early 2024, the Chilean government said that state-owned mining company Codelco and SQM have formed a "common partnership" in which Codelco will hold a 50 percent stake plus one share to give it majority control.
Outside of South America, SQM is developing the Mount Holland lithium project in Australia; the project is known as one of the world''s largest hard-rock deposits. Mount Holland is a joint venture with Wesfarmers (ASX:WES,OTC Pink:WFAFF), which took over Australian lithium-mining company Kidman Resources in 2019. The company stated in its 2022 annual report that it expects lithium hydroxide production to commence by H1 2025.
In mid-June, SQM penned a long-term supply deal with Hyundai (KRX:005380) and Kia (KRX:000270) to provide lithium hydroxide for electric vehicle batteries. SQM, which already has supply agreements with Ford Motors (NYSE:F) and LG Energy (KRX:373220), said it will provide Hyundai and Kia with a portion of their future lithium hydroxide supply.
Market cap: US$10.27 billionShare price: US$87.42
North Carolina-based Albemarle underwent a realignment in 2022, dividing the lithium company into two primary business units, one of which — the Albemarle Energy Storage unit — is focused wholly on the lithium-ion battery and energy transition markets. It includes the firm's lithium carbonate, hydroxide and metal production.
Albemarle has a broad portfolio of lithium mines and facilities, with extraction in Chile, Australia and the US. Looking first at Chile, Albemarle produces lithium carbonate at its La Negra lithium conversion plants, which process brine from the Salar de Atacama, the country''s largest salt flat. La Negra has been in operation since 1984 and now consists of three plants, with the latest, La Negra III/IV, coming online in 2022. The newest plant includes a thermal evaporator that reduces water consumption by up to 30 percent. Going forward, Albemarle is hoping to implement direct lithium extraction technology at the salt flat by 2028 or 2029, a move that would help further reduce water usage.
Albemarle''s Australian assets are both joint ventures. The company and Mineral Resources (ASX:MIN,OTC Pink:MALRF) own the MARBL joint venture, which owns and operates the Wodgina hard-rock lithium mine and on-site Kemerton lithium hydroxide facility in Western Australia. Albemarle previously held 60 percent interests in both Wodgina and Kemerton; now, following multiple changes to their joint venture agreement this year, the two companies each have 50 percent interests in Wodgina, and Albemarle has 100 percent ownership of Kemerton. The company''s other Australian joint venture is the aforementioned Greenbushes mine, in which it holds a 49 percent interest alongside Tianqi and IGO.
As for the US, Albemarle is working to expand its role in domestic production and processing in line with the government''s Inflation Reduction Act. The company owns the Silver Peak lithium brine operations in Nevada's Clayton Valley, which is currently the country''s only source of lithium production; it plans to double the site''s lithium production by 2025.
In September 2023, Albemarle received a US$90 million critical materials award from the US Department of Defense to boost its domestic lithium production and support the country's burgeoning EV battery supply chain.
In its home state of North Carolina, Albemarle is planning to bring its past-producing Kings Mountain lithium mine back online, subject to permitting approval and a final investment decision. In late 2022, Albemarle received US$150 million in funding from the US government to support the building of a commercial-scale lithium concentrator facility on site. This lithium would then supply the company''s planned lithium hydroxide Mega-Flex facility, which will be nearby in Chester County, South Carolina. It is also developing the upcoming Albemarle Technology Park in North Carolina, which will serve as an advanced R&D facility for the acceleration of lithium innovation.
In early June of this year, Albemarle unveiled its project plan for the proposed mine to the community. The mine is expected to produce around 420,000 MT of lithium-bearing spodumene concentrate annually.
Market cap: US$6.72 billionShare price: 25.82 Chinese yuan
Tianqi Lithium, a subsidiary of Chengdu Tianqi Industry Group, is the world''s largest hard-rock lithium producer. The company has assets in Australia, Chile and China. It holds a significant stake in SQM — Tianqi paid US$209.6 million for a 2.1 percent stake in SQM in September 2016, which it then boosted to 23.77 percent for US$4.07 billion in 2018.
In Australia, Tianqi has the Greenbushes mine, which it acquired in 2012 when it purchased Talison Lithium, beating out Rockwood Holdings. However, it subsequently sold a 49 percent interest in Talison to Rockwood, which, as mentioned, is now owned by Albemarle. The company also developed a lithium hydroxide plant in the Kwinana Industrial Area south of Perth in Western Australia. The facility launched production in Q3 2019, and first output took place in mid-2021.
Ownership of Greenbushes became further divided in 2020, when Tianqi sold a stake in its Australian assets to IGO in a US$1.4 billion deal, giving a boost to the then financially troubled Chinese company. The deal gave IGO a 25 percent interest in Greenbushes and a 49 percent interest in Kwinana.
Rising lithium prices later helped further buoy Tianqi, which listed in Hong Kong in 2022, raising about US$1.7 billion in its debut. Commercial production at Kwinana began in December 2022 from Train 1 of the facility, and Train 2 is expected to be commissioned in 2024. The hydroxide plant is being fed by lithium from Greenbushes, and should have a production capacity of 48,000 MT per year once both trains are online.
In February this year, Tianqi Lithium updated its total mineral resources at Greenbushes to 447 million MT with the average grade of lithium oxide at 1.5 percent, or approximately 16 million MT of lithium carbonate equivalent.
Market cap: US$6.29 billionShare price: US$2.09
Ganfeng now has interests in lithium resources around the world, from Australia to Argentina, China and Ireland; its operations include a 50/50 joint venture with Mineral Resources (ASX:MIN,OTC Pink:MALRF) for the Mount Marion mine in Western Australia.
In the last half decade alone, Ganfeng has made multiple significant deals. As mentioned, in 2018, the company bought SQM''s stake in Lithium Americas'' Caucharí-Olaroz lithium brine project in Argentina, and two years later it upped its interest in Caucharí-Olaroz to 51 percent, taking a controlling stake in the asset.
In 2021, Ganfeng continued to expand. The company agreed to buy the shares it did not already own in Mexico-focused Bacanora Lithium for US$264.5 million; it also bought a 50 percent stake in a lithium mine in Mali for US$130 million, as well as a 49 percent stake in a salt lake project in China owned by China Minmetals for 1.47 billion yuan. The company continued its purchasing spree in 2022 when it bought private company LitheA, which owns the rights to two lithium salt lakes in Argentina's Salta province, for US$962 million.
In May 2023, Ganfeng entered into a cooperation agreement with Leo Lithium (ASX:LLL,OTC Pink:LLLAF). The giant invested AU$106.1 million into Leo, which will go toward ramping up the latter company's Goulamina project in Mali. Ganfeng now holds a 9.9 percent interest in the company.
Ganfeng has supply deals with companies such as Tesla (NASDAQ:TSLA), BMW (OTC Pink:BMWYY,ETR:BMW), Korean battery maker LG Chem (KRX:051910), Volkswagen (OTC Pink:VLKAF,FWB:VOW) and Hyundai.
Market cap: US$5.83 billionShare price: AU$2.90
Pilbara Minerals operates its 100 percent owned Pilgangoora lithium-tantalum asset in Western Australia, which achieved commercial production in 2019. The operation consists of two processing plants: the Pilgan plant, located on the northern side of the Pilgangoora area, which produces a spodumene concentrate and a tantalite concentrate; and the Ngungaju plant, located to the south, which produces a spodumene concentrate.
In 2021, the company acquired Altura Lithium following a cash payment of US$155 million. Pilbara has partnerships with Ganfeng Lithium, General Lithium, Great Wall Motor Company (OTC Pink:GWLLF,HKEX:2333), POSCO (NYSE:PKX), CATL (SZSE:300750) and Yibin Tianyi. In the December quarter of 2023, Pilbara announced commissioning activities at its South Korean-based lithium hydroxide processing plant, a joint venture with partner POSCO. Early in 2024, Pilbara extended its offtake agreements with Gangeng and Chengxin Lithium Group.
Pilbara is currently working on multiple expansion projects at Pilgangoora. Its P680 expansion is for a primary rejection facility and a crushing and ore-sorting facility; while the P1000 expansion is targeting a spodumene production increase at the site to 1 million MT per year.
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