World demand for lithium continues to grow in many different markets. The outlook for near term supply is discussed in this paper. Lithium is derived from spodumene (1.5-4.0% Li) and lithium brines. Lithium brines have the highest concentrations of the element than any other natural source. Lithium carbonate is the largest product produced regarding percentage of production. Asian markets are growing and using lithium products at an ever increasing rate. Chile (Solar de Atacama) is the leading supplier of the chemical. The geography of Solar de Atacama is superior to all other sites worldwide regarding extremely low rainfall and high evaporation rate. This combination results in a very energy efficient operation. It is anticipated that new production capacity (30%) will come onstream between 2005-2008.
