Australia has one of the biggestlithium reserves,[1] and is the biggest producer of lithium by weight,[2] with most of its production coming from mines inWestern Australia. Most Australian lithium is produced from hard-rockspodumene,[3] in contrast to other major producers like Argentina, Chile and China, which produce it mainly fromsalt lakes.[4]
The world's largest hard-rock lithium mine, theGreenbushes mine, is in Western Australia.[5] It is co-operated by the Chinese companyTianqi Lithium and the Australian companiesTalison Lithium andIGO Limited.[6] In 2021, it contributed 40% of the lithium mined in Australia.[7]
Australia is home to lithium minersOrocobre,Core Lithium,Pilbara Minerals,Mineral Resources and Altura Mining.[8]
A 2023 estimate suggests that lithium production in Australia will hit a cap of 1.2 million tonnes (2.6 billion pounds) of lithium carbonate equivalent by 2030, and that the country will by then remain the top producer but with a smaller proportion of the world's production compared with 2023.[9]
TheGreenbushes mine in the southwest of Western Australia is Australia's oldest and biggest lithium mine.[7] It was opened in 1984 by Greenbushes Tin, which had discovered major lithium deposits at the site four years previously while exploring fortantalum. The mine was purchased byTalison Minerals in 2007.[10]
In the year to July 2022, Greenbushes produced 1.03 million tonnes (2.26 billion pounds) of spodumene concentrate.[11]
The Mount Marion mine is an open-pit mine in Western Australia nearKalgoorlie. It was originally developed by a joint venture betweenMineral Resources and Neometals and became operational in 2017.Ganfeng Lithium purchased Neometals' stake in 2018. The mine is today co-owned equally by Mineral Resources and Ganfeng.[12]
Mount Marion contains the world's second-biggest high-grade lithium mineral resources, with an estimated 71 million tonnes (160 billion pounds) of spodumene.[12]
Pilbara Minerals produces out of its Pilgangoora lithium-tantalum project located in Western Australia'sPilbara region.[13] The site is located 120 kilometres (75 mi) fromPort Hedland. By 2018, the company had "attracted a group of high quality, experience global offtake partners including Gangfeng Lithium, General Lithium,Great Wall Motor Company andPOSCO" as potential customers of its Pilgangoora project[13] and was exploring options to scale the project.[13][needs update]
The Pilgangoora mine was owned by Altura Mining until 2021, when the company went bankrupt. Its assets were purchased by Pilbara Minerals forA$201 million (US$151 million).[14]
Pilbara Minerals commenced construction of its Pilgangoora project in January 2017 which was completed in late July 2018, producing its first lithium concentrate one month later.[15] Pilbara Minerals delivered 111,199 dry tonnes (250 million pounds) to date[when?] for 2019 financial year with forecasted production for its March quarter between 47,000 and 52,000 dry tonnes (100 and 110 million pounds).[16] On 28 March 2019 Pilbara announced it will commence a partnering process to support its expansion of the Pilgangoora project.[17]
TheMt Cattlin mine is an open-pit mine nearRavensthorpe, Western Australia. It was developed byGalaxy Resources (now Allkem) and opened in 2010. The site contains an estimated 8.2 million tonnes (18 billion pounds) of lithium reserves with a lithium oxide equivalent content of 1.23%. In 2019, the mine produced 192,000 dry tonnes (420 million pounds) of spodumene.[19] Mining was temporarily suspended there in 2013 due to a drop in lithium prices, but was restarted in 2016.[20]
Processed ore is shipped out via the port ofEsperance around 200 kilometres (120 mi) east of the mine.[19]
The Wodgina lithium mine in Western Australia is operated by a joint venture betweenAlbemarle andMineral Resources. It has a theoretical annual production capacity of 750,000 tonnes (1.7 billion pounds). The site was inactive from 2019–2021, as low lithium prices made its operation unprofitable.[21]
Historically, Wodgina was primarily an iron mine. Iron extraction there ceased in 2017.[22]
TheFinniss Lithium Project in theNorthern Territory is the only Australian lithium mine outside ofWestern Australia. It opened in 2022 and is operated byCore Lithium.[23] The project will unfold in stages,[when?] initially with open-pit mining near Grants and Hang Gong, as well as underground mining at the Grants, BP33, and Carltonprospects.[24] The mine is estimated to contain 31 million tonnes (68 billion pounds) of lithium-containing minerals, with alithium oxide-equivalent content of 1.3%.[25] During construction, the project was given'Major Project Status' by the Australian government, which meant it was eligible for a streamlined federal approval process and help in dealing with local and state approval processes.[26] Battery-gradelithium hydroxide was produced as part of the test works on spodumene mineral concentrate samples from the project in April 2021.[24]Tesla contracted[when?] for 110,000 tonnes (240 million pounds) of spodumene concentrate over four years from the Finniss lithium mine.[27][23]
The Mount Holland mine is an open-pit mine situated 105 kilometres (65 mi) southeast ofSouthern Cross. Developed by Covalent Lithium (a joint venture between theChilean companySociedad Química y Minera and the Australian companyWesfarmers), with operations commencing in late 2023.[28] The project plans to produce 380,000 tonnes (840 million pounds) of spodumene concentrate to a refinery inKwinana. The refinery is planned to produce 50,000 tonnes (110 million pounds) oflithium hydroxide a year[when?] with asodium sulfate by-product.[29]
Similar to Wodgina, the location was previously used for gold mining as the Bounty gold mine from 1989 to 2001, with much of the infrastructure removed prior to construction.
Many Australian lithium producers also operate outside of Australia. For instance,Allkem, in addition to operating the Mt Cattlin mine, sources much of its lithium from various Argentinian sites andJames Bay, Canada.[30]
In financial year 2021-2022, Australia produced 330,000 tonnes (730 million pounds) oflithium carbonate equivalent.[33] For comparison, Chile, the world's second biggest lithium producer, produced 45,000 tonnes (99 million pounds) in 2018. China, the third-biggest, produced 38,000 tonnes (84 million pounds).[34] As of 2023, 53% of the world's annual lithium supply is mined in Australia,[35] and 96% of it is exported to China for processing.[36]
Worldwide production increased by 74 percent from 2016 to 2017, predominantly due to a "threefold increase in Australia's spodumene production".[37] In 2017 Australia overtook Chile as the largest producer of lithium.[38]
According to theUnited States Geological Survey,[39]
five spodumene operations inAustralia and two brine operations each inArgentina and Chile accounted for the majority of world lithium production [...]. The leading spodumene operation in Australia increased its spodumene concentrate production by about 40 percent in 2018 and remained the world's largest lithium producer [...].
Like all mines, lithium mines significantly impact their surrounding environments. Most lithium mines in Australia aresurface mines.[40] The most immediate impact of these mines is the removal of all plants, soil and wildlife on the site of the mine. The mining process generates inhalable and respirabledust particles.[41]
Australian lithium extraction has a highercarbon footprint than lithium mining elsewhere. This is primarily because Australian lithium mines use extremelycarbon-intensive power sources, especiallydiesel, for extraction and processing, and because most of it is subsequently shipped to China for further processing, which also uses highly carbon-intensive fuels.[42]
Lithium may be extracted either by mining or from lithiumbrines.[44] More capital outlay is needed for hard-rock spodumene mining than for lithium brines.[44] This plays a role when identifying whether a project is worth an investment or conversely, if it should be abandoned.[45][46]
Market demand is another major factor.[47] The rapid growth and expansion of the electric vehicle sector has caused a surge in demand for lithium forlithium-ion batteries.[48] This generates higher revenues[49] for existing and new market entrants:[50]
Pilbara Minerals managing director and chief executive Ken Brinsden said the demand for higher quality battery materials put WA in the drivers seat [...].
The rising demand in the market for lithium "shows no signs of slowing"[51] in Australia, which hosts the "highest economic concentrations of lithium via several hard rock deposits".[52] However, as reported by theAustralian Financial Review, as supply of lithium grows, the value of existing companies falls.[53] Supply continues to grow as a royal settlement struck by Chilean producer SQM gives the company permission over the next 7 years to more than triple its production,[53] "but federal forecasts in the resources and energy quarterly found while WA will be pulling out a record 419,000 tonnes of lithium ore spodumene from the ground, it won’t reap the same high prices the industry has experienced."[50]
TheAustralian Government is encouraging investment in the lithium industry.[54] As of 10 April 2019[update], thefederal andstate governments along with industry had agreed to fund a new modern national lithium research centre valued atA$135 million which "will operate out ofCurtin University inPerth"forA$53 million.[incomprehensible] The facility aims to make[when?] Western Australia a hub for battery-making and research surrounding lithium battery manufacturing.[54]
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