Insights into Australian Exports of Lithium

Statistics about international trade in goods and services, on a balance of payments and international trade basis

Released

4/08/2022

Source

International Trade in Goods and Services, Australia, June 2022

Introduction

This article provides insights into the exports of lithium using detailed commodity data from Customs declarations.

Global demand for lithium has grown significantly in recent years. Due to its lightweight properties, lithium is a key component in the production of rechargeable batteries used in electric vehicles (EVs), renewable energy storage, and consumer devices such as mobile phones, laptops, and cameras.

Australia is the world’s biggest exporter of lithium¹. In 2020, 46% of the world’s lithium came from Australia and exports of lithium are expected to continue to increase, forecasted to contribute $9.4 billion in revenue to the Australian economy by 2023-24².

Australian lithium mines primarily extract spodumene concentrate, which is a lithium mineral derived from pegmatite and the most widely exploited lithium mineral source³. Spodumene is further processed to produce lithium hydroxide (preferred for batteries) or lithium carbonate (sometimes used in batteries but more commonly medications, glass production, and other uses). Australian exports of lithium are primarily in the form of spodumene concentrate however as global demand grows, several Australian lithium mines are commencing production of lithium hydroxide⁴.

Exports of Lithium in International Trade Statistics

Within the International Trade in Goods and Services publication, exports of lithium are included under the Standard International Trade Classification (SITC) category 27 Crude fertilizers, other than those of Division 56, and crude minerals (excluding coal, petroleum and precious stones) (Figure 1).

Figure 1 – Exports of SITC 27 (Crude fertilisers and crude minerals)(a)
	SITC 27 ($m)
Jan-21	91
Feb-21	59
Mar-21	82
Apr-21	128
May-21	125
Jun-21	109
Jul-21	120
Aug-21	179
Sep-21	264
Oct-21	189
Nov-21	184
Dec-21	418
Jan-22	326
Feb-22	349
Mar-22	562
Apr-22	525
May-22	973
Jun-22	1,179

Figure 1 – Exports of SITC 27 (Crude fertilisers and crude minerals)(a)

["","SITC 27 ($m)"]

[["Jan-21","Feb-21","Mar-21","Apr-21","May-21","Jun-21","Jul-21","Aug-21","Sep-21","Oct-21","Nov-21","Dec-21","Jan-22","Feb-22","Mar-22","Apr-22","May-22","Jun-22"],[[91],[59],[82],[128],[125],[109],[120],[179],[264],[189],[184],[418],[326],[349],[562],[525],[973],[1179]]]

[]

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[{"value":"0","axis_id":"0","axis_title":"$m (FOB)","axis_units":"","tooltip_units":"","table_units":"","axis_min":null,"axis_max":null,"tick_interval":null,"precision":"-1","data_unit_prefix":"","data_unit_suffix":"","reverse_axis":false}]

(a) FOB = Free on Board (excludes freight and insurance costs)

The Australian Harmonized Export Commodity Classification (AHECC) is the product classification used to identify goods being exported from Australia on Customs declarations. In January 2021, the ABS created a new statistical commodity code, Lithium concentrates (AHECC code 25309011), which captures spodumene concentrate exported by Australia. This change has enabled lithium to be separately identified within International Trade statistics and allows users to gain additional insights into this commodity which were not previously possible.

In June month 2022, exports of lithium concentrates reached a record high of $1,163m, up $1,073m (1189%) from June month 2021. For most of 2021, monthly lithium exports did not exceed $250m. Exports values started to increase rapidly from late 2021, where it more than doubled from November to December 2021. From April 2022 to May 2022, exports of lithium almost doubled again, and in June 2022 surpassed $1 billion for the first time (Figure 2).

For June quarter 2022, total lithium exports were $2,632m, up $2,318m (737%) from the June quarter 2021. From a state perspective, Western Australia accounted for over 99% of Australian lithium exports in each month since January 2021.

Figure 2 – Exports of Lithium Concentrates (a)
	Lithium Concentrates ($m)
Jan-21	68
Feb-21	50
Mar-21	76
Apr-21	110
May-21	115
Jun-21	90
Jul-21	110
Aug-21	165
Sep-21	211
Oct-21	137
Nov-21	138
Dec-21	362
Jan-22	282
Feb-22	340
Mar-22	528
Apr-22	517
May-22	952
Jun-22	1,163

 Figure 2 – Exports of Lithium Concentrates (a)

["","Lithium Concentrates ($m)"]

[["Jan-21","Feb-21","Mar-21","Apr-21","May-21","Jun-21","Jul-21","Aug-21","Sep-21","Oct-21","Nov-21","Dec-21","Jan-22","Feb-22","Mar-22","Apr-22","May-22","Jun-22"],[[68],[50],[76],[110],[115],[90],[110],[165],[211],[137],[138],[362],[282],[340],[528],[517],[952],[1163]]]

[]

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[{"value":"0","axis_id":"0","axis_title":"$m (FOB)","axis_units":"","tooltip_units":"","table_units":"","axis_min":null,"axis_max":null,"tick_interval":null,"precision":"-1","data_unit_prefix":"","data_unit_suffix":"","reverse_axis":false}]

(a) FOB = Free on Board (excludes freight and insurance costs)

The increase in lithium exports was due to increases in both quantity and unit value. Since January 2021, the unit value increased more than fourfold reflecting the pickup in global demand for lithium (Figure 3).

Figure 3 - Exports of Lithium Concentrates – quantity and unit value, index January 2021=100
	Quantity (KG)	Unit Value ($/KG)
Jan-21	100	100
Feb-21	68	110
Mar-21	118	95
Apr-21	143	113
May-21	145	117
Jun-21	117	115
Jul-21	106	153
Aug-21	144	170
Sep-21	149	210
Oct-21	88	231
Nov-21	114	180
Dec-21	164	327
Jan-22	104	400
Feb-22	98	513
Mar-22	148	527
Apr-22	138	554
May-22	170	829
Jun-22	223	771

Figure 3 - Exports of Lithium Concentrates – quantity and unit value, index January 2021=100

["","Quantity (KG)","Unit Value ($\/KG)"]

[["Jan-21","Feb-21","Mar-21","Apr-21","May-21","Jun-21","Jul-21","Aug-21","Sep-21","Oct-21","Nov-21","Dec-21","Jan-22","Feb-22","Mar-22","Apr-22","May-22","Jun-22"],[[100],[68],[118],[143],[145],[117],[106],[144],[149],[88],[114],[164],[104],[98],[148],[138],[170],[223]],[[100],[110],[95],[113],[117],[115],[153],[170],[210],[231],[180],[327],[400],[513],[527],[554],[829],[771]]]

[]

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[{"value":"0","axis_id":"0","axis_title":"Index Jan21 = 100","axis_units":"","tooltip_units":"","table_units":"","axis_min":null,"axis_max":null,"tick_interval":null,"precision":"-1","data_unit_prefix":"","data_unit_suffix":"","reverse_axis":false}]

Most Australian lithium is exported to China, accounting for over 85% of total value in each month of 2021 and over 94% in each month of 2022 (year to date). In June 2022, $1,128m worth of lithium was exported to China, accounting for 97% of the total lithium exports for that month (Figure 4).

Figure 4 – Exports of Lithium Concentrates, by China and Total (a)
	China ($m)	Total ($m)
Jan-21	58	68
Feb-21	49	50
Mar-21	75	76
Apr-21	99	110
May-21	106	115
Jun-21	84	90
Jul-21	108	110
Aug-21	149	165
Sep-21	207	211
Oct-21	128	137
Nov-21	126	138
Dec-21	352	362
Jan-22	269	282
Feb-22	336	340
Mar-22	496	528
Apr-22	510	517
May-22	924	952
Jun-22	1,128	1,163

Figure 4 – Exports of Lithium Concentrates, by China and Total (a)

["","China ($m)","Total ($m)"]

[["Jan-21","Feb-21","Mar-21","Apr-21","May-21","Jun-21","Jul-21","Aug-21","Sep-21","Oct-21","Nov-21","Dec-21","Jan-22","Feb-22","Mar-22","Apr-22","May-22","Jun-22"],[[58],[49],[75],[99],[106],[84],[108],[149],[207],[128],[126],[352],[269],[336],[496],[510],[924],[1128]],[[68],[50],[76],[110],[115],[90],[110],[165],[211],[137],[138],[362],[282],[340],[528],[517],[952],[1163]]]

[]

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(a) FOB = Free on Board (excludes freight and insurance costs)

APA

Citation

Insights into Australian Exports of Lithium

APA

Citation

Introduction

Exports of Lithium in International Trade Statistics

Footnotes

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