Australia's Lithium Mining Boom: Which Operations Drive Global Supply?

Australia commands an extraordinary 47 percent of worldwide lithium production, establishing itself as the planet’s dominant source of this critical battery metal. With projections showing the country’s lithium export revenue climbing toward AU$10.43 billion by 2029, the nation’s mining sector stands at the forefront of the global energy transition. In 2023 alone, Australian lithium mines delivered 86,000 tonnes of output—a substantial jump from the previous year’s 74,700 tonnes—underscoring accelerating momentum in the sector.

The Eight Powerhouses Reshaping Global Lithium Supply

Greenbushes: The Heavyweight Champion

Greenbushes remains the world’s largest operational lithium mine by output capacity. Run as a 51/49 joint venture between Tianqi Lithium Energy Australia and Albemarle, this long-standing operation has been continuously producing since 1985. In FY2024, the mine churned out 1.38 million tonnes of spodumene concentrate, supported by proven and probable reserves of 179 million tonnes at 1.9 percent lithium oxide (Li2O). A third chemical processing facility currently under construction promises an additional 500,000 tonnes of annual capacity, with completion anticipated during the 2025 fiscal year.

Pilgangoora: Scaling New Heights

Pilbara Minerals’ fully-owned Pilgangoora operation generated 725,329 tonnes of spodumene concentrate in FY2024, making it a critical contributor to Australia’s total output. Sitting atop one of the globe’s largest lithium deposits with 214 million tonnes in reserves at 1.19 percent Li2O, the operation is executing an ambitious expansion programme. The P680 and P1000 initiatives, targeting completion in 2025, aim to increase production capacity from 680,000 to 1,000,000 tonnes annually—a 47 percent boost. A pre-feasibility study completed in June 2024 projects the expanded facility could deliver 1.9 million tonnes of spodumene concentrate yearly across its first decade of operation.

Mount Marion: Underground Expansion Underway

The 50/50 partnership between Mineral Resources and Ganfeng Lithium operates Mount Marion with impressive FY2024 production of 658 million tonnes of spodumene concentrate. The joint venture upgraded plant capacity to 900,000 tonnes annually in 2023. Most significantly, underground development commenced in June 2024, positioning the mine to begin next-phase production by late 2025. With 35.7 million tonnes in reserves averaging 1.42 percent lithium oxide, the operation retains considerable runway for future expansion.

Wodgina: The Comeback Story

After a two-year dormancy following its 2017 launch, Wodgina returned to production in 2022 through the MARBL joint venture pairing Mineral Resources and Albemarle. The FY2024 performance showcased 424,000 tonnes of spodumene concentrate alongside 36,768 tonnes of lithium hydroxide output. The asset boasts 164.6 million tonnes in proven and probable reserves at 1.15 percent Li2O. Notably, Mineral Resources increased its ownership stake to 50 percent in February 2023, strengthening its control over this critical asset.

Mount Holland: Newest High-Grade Operation

Covalent Lithium, the 50/50 joint venture between Wesfarmers and SQM, operates Mount Holland—recognized globally as one of the world’s largest hard-rock lithium deposits. The operation marked its spodumene production debut in Q4 2023 with expectations for 380,000 tonnes annual output once fully operational. The associated Kwinana lithium hydroxide refinery, now under construction, will target approximately 50,000 tonnes of lithium hydroxide production annually upon 2025 completion.

Kathleen Valley: Late-Stage Ramp-Up

Liontown Resources brought Kathleen Valley online in July 2024, marking a significant new entry into Australia’s lithium mining landscape. The operation achieved first shipment in September 2024, dispatching 11,855 wet tonnes of spodumene concentrate grading 5.2 percent lithium oxide to existing customers. Full production is projected to reach approximately 500,000 tonnes annually by end of Q1 2025, with year-six expansion plans targeting 700,000 tonnes per year. With 68.5 million tonnes in reserves at 1.54 percent Li2O, the mine holds substantial long-term potential.

Mount Cattlin: Ownership Transition

Rio Tinto’s US$6.7 billion acquisition of Arcadium Lithium brings Mount Cattlin into the mining behemoth’s portfolio. This pegmatite deposit simultaneously produces lithium and tantalum. However, September 2024 announcements indicated Allkem—Arcadium’s subsidiary—plans to suspend Stage 4A waste stripping and place the mine into care and maintenance by end of H1 2025 following Stage 3 completion. 2023 production reached 239,000 tonnes of spodumene concentrate from 5.74 million tonnes of reserves grading 1.2 percent Li2O.

Finniss: Weathering Price Headwinds

Core Lithium’s Finniss operation in the Northern Territory represents Australia’s only major lithium mine outside Western Australia. The facility delivered 95,020 tonnes of spodumene concentrate in FY2024 and achieved first production in February 2023. However, operations at the Grants open-pit mine and the prospective BP33 underground project entered temporary suspension during early 2024 following deteriorating lithium price forecasts. Management initiated a restart study expected to conclude during H1 2025, targeting a return to normal operations.

The Geological Advantage: Why Western Australia Dominates

The overwhelming majority of Australian lithium resources concentrate in Western Australia, where robust hard-rock deposits containing spodumene and lepidolite support the nation’s industry. Typical Australian lithium deposits grade between 1 and 3 percent lithium oxide, establishing competitive extraction economics that sustain profitability even during price corrections.

Market Tailwinds Supporting Long-Term Growth

Despite recent price retreats, fundamental demand drivers remain intact. BloombergNEF forecasts global passenger electric vehicle sales will surge 21 percent in 2024 to reach 16.7 million units, with 70 percent anticipated as fully electric. Currently, 80 percent of worldwide lithium consumption flows toward rechargeable battery manufacturing—a dynamic that locks in sustained demand for Australian lithium mines and concentrates investor attention on Australia’s production capacity.