Global Lithium Refining Industry Landscape
The lithium refining sector sits at the strategic center of the EV battery supply chain, converting raw spodumene concentrate and brine into battery-grade lithium hydroxide (LiOH) and lithium carbonate (Li₂CO₃). As of 2025, global lithium refining capacity exceeds 1.2 million tonnes LCE, with China controlling roughly 72% of conversion capacity.
Market Structure
The industry is dominated by a handful of vertically integrated players—Albemarle, SQM, Ganfeng Lithium, and Tianqi Lithium—which collectively account for nearly half of global output. Rio Tinto’s .7 billion acquisition of Arcadium Lithium in 2025 consolidated the sector further, creating the world’s third-largest lithium producer.
| Region | Share of Refining Capacity | Key Players |
|---|---|---|
| China | ~72% | Ganfeng, Tianqi, Yahua, CATL |
| South America | ~14% | SQM, Albemarle (Chile ops) |
| Australia | ~6% | Tianqi (Kwinana), Covalent Lithium |
| North America | ~5% | Albemarle, Arcadium, Stardust Power |
| Europe | ~3% | AMG Lithium, Vulcan Energy |
Products & Processing Routes
- Lithium Hydroxide Monohydrate (LiOH·H₂O)
- Preferred cathode precursor for high-nickel NMC and NCA batteries. Produced via hard-rock (spodumene) conversion or carbonation-causticization of brine-derived carbonate.
- Lithium Carbonate (Li₂CO₃)
- Used in LFP cathodes, ceramics, and glass. Typically extracted from brine operations in Chile and Argentina.
- Spodumene Concentrate (SC6)
- Intermediate product from hard-rock mines (Australia), shipped to conversion plants primarily in China.
Capacity Expansion & Investment Trends
Major capacity additions are underway globally. Albemarle’s South Carolina Mega-Flex facility will add 50,000 tonnes/yr of lithium hydroxide with potential to scale to 100,000 tonnes. SQM is expanding its Salar de Carmen operations to 300,000 tonnes/yr combined carbonate and hydroxide. In Australia, Covalent Lithium’s Kwinana refinery reached first production of battery-grade hydroxide in 2025, targeting 50,000 tonnes/yr nameplate capacity.
Emerging players like Stardust Power (Muskogee, Oklahoma) and Mangrove Lithium (Delta, British Columbia) are building greenfield refineries, signaling a strategic push toward supply chain localization in North America.