The United States has been importing thousands of tons of lithium annually, with over 4,000 tons flowing into the country in 2025 alone—meeting more than half of American demand. This figure rose from 3,300 tons in 2024 and 3,700 tons in 2023.
Global lithium production has grown steadily, increasing by 31% in 2025 compared to 2024 and 18% the previous year. U.S. demand has followed a similar upward trajectory.
The nation relies heavily on imports, with almost all of its lithium originating from Argentina and Chile. However, processing and refining this mineral—a critical step before use—has been dominated by China. Reports indicate China controls more than 60% of global lithium processing capacity, creating downstream dependency despite upstream sourcing from South America.
A recent U.S. Geological Survey (USGS) discovery revealed substantial deposits in the Appalachian mountains. The agency announced these reserves could “replace 328 years of U.S. imports.” Specifically, the Southern Appalachians hold over 1.5 million tons of lithium, while the northern ranges in Maine and New Hampshire contain nearly one million tons.
USGS Director Ned Mamula described the findings as a major contribution to national mineral security: “This research shows that the Appalachians contain enough lithium to help meet the nation’s growing needs— a major contribution to U.S. mineral security, at a time when global lithium demand is rising rapidly.”
The USGS noted these deposits could produce 1.6 million grid-scale batteries for electric grid stabilization, a 1,000-year supply of laptops globally, or 500 billion smartphones.
EPA Administrator Lee Zeldin emphasized the discovery’s significance: “This means being able to reduce our reliance on foreign sources,” he stated. “Critical minerals—from extraction through processing—need to be ramped up inside the United States.”
Three decades ago, the U.S. was the world’s largest producer of lithium and its compounds. A Department of Energy report titled “Critical Materials Strategy” detailed that in the early 1990s, the nation was the leading global producer and consumer. The agency also sold approximately 37,200 tonnes of excess lithium from nuclear programs of the 1950s and 1960s. By 1997, the U.S. closed its last spodumene mine in North Carolina, ending domestic lithium carbonate production.
However, environmental regulations made imports more cost-effective, leading to a decline in U.S. production and increasing reliance on China for this critical element.
The United States is now signaling readiness to both extract and process lithium domestically. A January 14 White House executive order underscores the need for increased domestic processing of lithium and other critical minerals.
This development coincided with clearance for restart of a dormant mine in North Carolina’s Kings Mountain, inactive since the 1980s. In 2023, the U.S. Department of Defense purchased $90 million worth of lithium from an Albemarle site near Charlotte. The company, which has processed lithium for 50 years, estimates its North Carolina operation could extract up to 420,000 tons of lithium-bearing spodumene concentrate annually.
Additionally, Tesla recently activated what CEO Elon Musk described as the largest lithium refinery in America.
