Australia Lithium Market Size, Trends & Forecast (2025–2034)

Australia is one of the world’s most critical players in the Australian lithium market and the broader global lithium supply chain. With vast reserves of lithium-bearing spodumene and a strong mining infrastructure, the country plays a pivotal role in fueling the growing demand for electric vehicles (EVs), energy storage systems, and renewable energy technologies. As the global shift toward decarbonization accelerates, Australia's lithium sector is gaining strategic importance, attracting significant investment and policy support.

Australia’s lithium mining is concentrated in Western Australia, home to some of the largest and most advanced lithium operations globally. The country’s strong regulatory framework, transparent mining policies, and well-developed export channels make it a dependable source for global lithium buyers.

Australian Lithium Market Size

Although specific 2024 figures vary across sources, the market size of Australia’s lithium industry continues to expand rapidly. Backed by increasing global battery demand, especially from the EV sector, the value of lithium exports has been climbing steadily, positioning Australia as a top global lithium exporter. Major shipments are directed to markets such as China, South Korea, and the United States, where lithium is refined and integrated into downstream applications.

As of 2024, Australia produces over 50% of the world’s lithium, and demand is pushing mining companies to boost output and expand processing capabilities. This surge sets the groundwork for robust future growth.

Australian Lithium Market Trends

• EV Boom Driving Demand: The global surge in electric vehicle production is the single largest driver of lithium demand, prompting Australian miners to scale operations.

• Onshore Refining & Processing: To move up the value chain, Australia is investing in domestic refining facilities to export battery-grade lithium hydroxide rather than raw spodumene.

• Strategic Partnerships: Mining firms are securing long-term supply agreements with EV manufacturers and battery producers, ensuring stable demand pipelines.

• Sustainability Pressure: Investors and regulators are pushing for cleaner mining processes and transparency in supply chains, encouraging ESG-aligned operations.

• Government Incentives: State and federal policies are supporting critical minerals exploration and processing through grants, tax breaks, and streamlined approvals.

Australian Lithium Market Growth

The Australian lithium market is projected to grow at a CAGR of 9.10% from 2025 to 2034, driven by several key factors:

• Rising Global Battery Demand: Lithium-ion batteries remain the dominant technology for EVs and grid storage, fueling continuous demand for high-purity lithium.

• Domestic Value Addition: Expansion of local processing facilities in Western Australia is creating more value for mined resources, increasing export value.

• Innovation in Extraction: Advancements in lithium extraction technologies are making it feasible to tap lower-grade deposits and improve yield efficiency.

• Supply Security Concerns: Global buyers are diversifying away from single-source suppliers, which benefits Australia due to its geopolitical stability and reliability.

Australian Lithium Market Segmentation

Breakup by Type

• Alloy

• Compound

• Metal

Breakup by Application

• Consumer Goods

• Grease

• Automotive

• Grid Storage

• Air Treatment

• Pharmaceuticals

• Others

Breakup by End Use

• Consumer Electronics

• Industrial

• Automotive

• Medical

• Energy Storage

• Others

Australian Lithium Market Forecast (2025–2034)

The Australian lithium market is poised for sustained expansion, with output and processing capabilities expected to scale significantly through 2034. Forecasted to grow at a compound annual growth rate of 9.10%, the sector is aligning closely with the global surge in clean energy adoption and battery manufacturing. As electric vehicles, energy storage systems, and renewable energy infrastructure continue to gain traction, demand for Australian lithium is set to grow in parallel.

Several developments are expected to influence the market trajectory over the next decade. Investment in lithium hydroxide refineries is accelerating, as Australia moves toward value-added exports rather than shipping raw spodumene. Downstream players, including global automakers and battery manufacturers, are becoming more involved through long-term offtake agreements and joint ventures, helping secure supply chains. AI and automation are being integrated into mining operations, enhancing efficiency and reducing operational costs. In addition, there is growing momentum around lithium battery recycling, with new initiatives supporting circular economy goals and reducing resource dependency.

With these advancements, Australia is reinforcing its status as a reliable and high-quality lithium supplier, offering geopolitical stability, resource abundance, and technological innovation. As countries push for electrification and emissions reduction, Australia’s lithium market is expected to play an increasingly central role in the global energy transition.

Competitive Landscape

Australia’s lithium market is populated by both emerging and established players, each contributing to the country’s growing prominence in the global lithium value chain. The competitive environment is dynamic, with joint ventures, mergers, and international partnerships playing a central role in project development.

Key players in the Australian lithium market include:

MetalsGrove Limited: An emerging explorer with active lithium and critical minerals projects in Northern Australia.

MinRex Resources Limited: Focused on early-stage exploration, MinRex is expanding its footprint in Western Australia’s lithium-rich regions.

Liontown Resources Limited: Developer of the Kathleen Valley Lithium Project, one of the most advanced battery-grade spodumene projects in the country.

Tianqi Lithium Holding Pty Ltd: A Chinese-owned company operating in Australia, co-owner of the Greenbushes lithium mine and involved in downstream processing in Kwinana.

Lithium Metal Australia: A key player aiming to close the loop by producing lithium hydroxide and lithium metal for next-gen battery applications.

Others: A mix of ASX-listed junior miners and global partners working to capitalize on Australia’s vast lithium reserves.