Australia's Lithium Mining Dominance: A 2024 Overview

The Global Lithium Supply Picture

Australia commands nearly half of the world’s lithium mining output, making it the undisputed leader in global lithium production and supply. This strategic position comes at a pivotal moment, as battery technology and electric vehicle adoption accelerate worldwide. Industry forecasts suggest Australia’s lithium mining sector could generate export revenues exceeding AU$10.43 billion by 2029, underscoring the commodity’s rising importance to the nation’s economy.

The lithium market has experienced notable price corrections from recent peaks, yet market analysts remain optimistic about long-term demand trajectories. The green energy transition—particularly the surge in electric vehicle manufacturing—is expected to sustain robust lithium demand for years to come. Global passenger EV sales are projected to climb 21 percent in 2024 to approximately 16.7 million units, with roughly 70 percent being fully electric vehicles.

Lithium Applications Driving Demand

Lithium’s versatility extends across multiple industries. Traditionally, the metal strengthens and lightens aluminum and magnesium alloys used in aircraft and rail production. However, the transformative application lies in rechargeable battery technology. Today, 80 percent of global lithium consumption fuels battery manufacturing, predominantly for consumer electronics and electric vehicles. Lithium’s unique electrochemical properties make it irreplaceable for creating the lightweight, high-energy-density batteries that power modern EVs.

This convergence of EV proliferation and battery demand has positioned Australian lithium mining as a critical infrastructure for the global energy transition.

Australia’s Lithium Mining Geography and Production

The majority of Australia’s lithium mining operations concentrate in Western Australia, where hard-rock spodumene deposits dominate the landscape. These deposits typically grade between 1 and 3 percent lithium oxide. In 2023, the country produced 86,000 tonnes of lithium—a 15 percent increase from 2022’s 74,700 tonnes. Production momentum accelerated around 2018 following the launch of two spodumene projects in 2017.

Spodumene extraction remains the primary lithium mining technique, though secondary minerals like lepidolite also contribute to supplies.

Major Lithium Mining Operations

Greenbushes: The Global Benchmark

Status: Fully operational
Annual FY2024 output: 1.38 million tonnes spodumene concentrate
Reserves: 179 million tonnes at 1.9% Li2O

The Greenbushes operation represents Australia’s—and globally—the largest active hard-rock lithium mining site. Operated by Talison Lithium (a joint venture between Tianqi Lithium Energy Australia and Albemarle), the mine traces its origins to 1983, with continuous lithium processing since 1985. This operational longevity reflects both technical refinement and market reliability. Currently, a third chemical processing facility is under construction, designed to process 500,000 tonnes of spodumene concentrate annually, with completion anticipated during FY2025.

Pilgangoora: Expansion in Motion

Status: Active production
FY2024 production: 725,329 tonnes spodumene concentrate
Reserves: 214 million tonnes at 1.19% Li2O

Pilbara Minerals operates Pilgangoora, one of the world’s largest lithium ore bodies positioned in Western Australia’s Pilbara region near Port Hedland. The asset comprises dual processing facilities: Pilgan and Ngungaju plants, each producing spodumene and tantalite concentrates. The company initiated expansion projects P680 and P1000 in March 2023, targeting a 47 percent production increase—from 680,000 tonnes to 1 million tonnes annually of spodumene concentrate. A June 2024 pre-feasibility study indicated the expanded operation could yield 1.9 million tonnes of spodumene concentrate per year across the first decade of operation.

Mount Marion: Joint Venture Growth

Status: Operating
FY2024 production: 658,000 tonnes spodumene concentrate
Reserves: 35.7 million tonnes at 1.42% Li2O average grade

Located southwest of Kalgoorlie in the Yilgarn Craton, Mount Marion operates as a 50/50 joint venture between Mineral Resources (operator) and Ganfeng Lithium. Since commencing operations in 2017, the partnership upgraded annual plant capacity to 900,000 tonnes by 2023. Underground development commenced as of June 2024, with initial production from this expanded phase expected by end-2025, representing a strategic shift toward deeper ore reserves.

Wodgina: The Comeback Operation

Status: In production
FY2024 output: 424,000 tonnes spodumene concentrate + 36,768 tonnes lithium hydroxide
Reserves: 164.6 million tonnes at 1.15% Li2O

Wodgina launched in 2017 but transitioned to care and maintenance within two years as market conditions softened. The MARBL joint venture—formed between Mineral Resources and Albemarle—successfully reactivated the mine in 2022, capitalizing on renewed lithium demand. Mineral Resources increased its ownership stake to 50 percent in February 2023, while Albemarle retained 50 percent interest plus full ownership of the lithium hydroxide processing facility. Combined output from Wodgina and Mount Marion enabled Mineral Resources to achieve record spodumene shipments during FY2024.

Mount Cattlin: Portfolio Addition for Rio Tinto

Status: Operating
2023 production: 239,000 tonnes spodumene concentrate
Reserves: 5.74 million tonnes at 1.2% Li2O

Mount Cattlin represents a pegmatite deposit hosting both lithium and tantalum since 2010. The asset is slated for acquisition by Rio Tinto as part of the mining conglomerate’s USD $6.7 billion proposed takeover of Arcadium Lithium. In September 2024, Allkem (Arcadium’s subsidiary) announced plans to suspend expansionary Stage 4A activities and place the operation into care and maintenance by mid-2025 following Stage 3 completion, reflecting market pricing pressures.

Mount Holland: New-Generation Refining Capacity

Status: Active
2023 Q4 production: 15,000 tonnes spodumene concentrate
Reserves: 83.9 million tonnes at 1.57% Li2O

Among the world’s largest hard-rock lithium mining deposits, Mount Holland emerged as a significant new entrant. Covalent Lithium—a 50/50 joint venture between Wesfarmers and SQM—launched spodumene production in Q4 2023, targeting 380,000 tonnes annually. The operation distinguishes itself by incorporating downstream refining: Covalent’s Kwinana lithium hydroxide refinery is under construction, positioning full-site commissioning for 2025 with anticipated annual lithium hydroxide production of 50,000 tonnes.

Kathleen Valley: Latest Operational Milestone

Status: Recently commenced
Projected annual output: 608,000 tonnes spodumene concentrate
Reserves: 68.5 million tonnes at 1.54% Li2O

Liontown Resources brought Kathleen Valley online in July 2024, marking fresh operational momentum in Australian lithium mining. The asset achieved ~500,000 MT annual production capacity by Q1 2025, with further expansion planned for year six to reach 700,000 MT annually. Initial shipments commenced in September 2024—11,855 wet metric tonnes with 5.2 percent lithium oxide concentrate grade—to an established offtake partner.

Finniss: Temporary Pause Amid Price Headwinds

Status: Suspended operations
FY2024 production: 95,020 tonnes spodumene concentrate
Reserves: 9.3 million tonnes at 1.38% Li2O

Located in the Northern Territory—Australia’s sole major lithium mining site outside Western Australia—Finniss (Core Lithium) achieved first spodumene concentrate production in February 2023. However, deteriorating lithium price outlooks prompted operational suspension and suspension of the proposed BP33 underground project. Core Lithium is conducting a restart feasibility study, anticipated completion in H1 2025, while pursuing a long-term multi-mine development strategy.

The Investment Thesis for Australian Lithium Mining

Australia’s lithium mining sector is positioned at the intersection of global EV adoption, battery technology advancement, and energy transition capital flows. The 2023-2024 period demonstrated both challenges—highlighted by price volatility and temporary operational pauses—and opportunities, evidenced by new project launches and capacity expansions.

With eight major operations across varying production scales, geographic diversification, and multiple ownership structures, Australia’s lithium mining landscape offers investors granular exposure to global battery supply chain dynamics. The sector’s trajectory through 2025 and beyond will likely reflect EV demand momentum, raw material pricing cycles, and the pace of downstream refining capacity development—all critical variables shaping global lithium mining fundamentals.