A lot has been happening in lithium-producing countries across the world following the dramatic and unexpected dip in the world price of the green mineral.
The price of lithium on the world market has witnessed extreme volatility, threatening the sustainability of the sector.
The mineral that soared to a record high in the late 2022 has seen a sharp and prolonged decline for most part of 2023 and 2024.
The Trend
Available data reveal that lithium prices peaked in 2022, when battery-grade lithium carbonate in China surged over 150%, hitting an all-time high of $80,000–$81,000 per metric ton by November–December.
The market prices declined sharply in 2023 as global supply expanded and EV sales growth slowed, with prices plunging to about $17,000 per ton by November 2023, representing a roughly 70% drop from the previous year’s peak.
The dip extended into 2024, with oversupply pushing prices down further to around $9,000–$9,700 per ton in early 2025. In response, producers in Australia and China announced production cuts and delayed projects to stem the decline.
By mid-2025, market sentiment turned bullish as inventories fell, demand strengthened, and regulations tightened. As of December 2025, lithium carbonate prices in China had rebounded to about $13,400 per metric ton, with forecasts pointing to possible further gains if supply deficits emerge.
With this dip in prices, many countries producing lithium, over the period, have deployed several measures to keep the sector afloat. This is because the dramatic collapse of the price for the government means revenue loss, for the companies, means losses, and for the workers, possible loss of jobs and income.
Amid the happenings, a natural resource governance expert, Dr. Steve Manteaw, has compiled the various actions by various governments to sustain the sector.
Western Australia (Australia)
Dr. Manteaw reveals that the government of Australia, as part of a package, announced a A$150 million (which is approximately US$99 million) Lithium Industry Support Program in November 2024 to assist struggling miners.
This package, he says, includes a A$50 million loan facility to provide temporary financial relief to under-pressure companies.
The state further announced temporary waivers for government fees, such as port charges and mining tenement fees, for up to 24 months for qualifying operations.
Argentina
The South American country has announced a new scheme dubbed “Large Investment Incentive Scheme (RIGI) to attract large-scale investments in the sector. The scheme outlines a number of packages and incentives to ensure that it attracts the needed capital investment, not only in the lithium sector, but also in copper mining to keep sectors running.
“The government is using its new Large Investment Incentive Scheme (RIGI) as part of a major economic reform bill to attract large-scale capital investments, including for lithium and copper mining,” Dr. Manteaw noted.
Ghana
Ghana wasn’t missing from the list, although its first lithium mine is yet to begin production. Dr. Manteaw observes that the revised deal for the Ewoyaa Lithium Project is not strange. It aligns with what many countries are doing to cushion the sector.
He remarks that “the government has been in negotiations with Atlantic Lithium, the company developing the Ewoyaa project, which requested a revision of lease terms (including a potential reduction in the royalty rate) to ensure the project remains viable after the price collapse. The government is considering a revised proposal with a potential new, sliding-scale royalty system to balance national interest with project viability.”
United States/Germany
The governments of the United States and Germany, he reveals, have shown support for domestic projects. For example, the U.S. government took a 5% stake in the Thacker Pass project in late 2025.
Germany, he notes, has granted Vulcan Energy Resources €104 million to advance domestic lithium output, signaling strong policy support amidst market volatility.
The Bottomline
For him, these various incentives from lithium-producing countries across the world are not out of the blue; it is a recognition of a sector that is distressed and needs support. It also reveals how the sector is critical and needs support, given its importance to the world’s energy transition agenda.
“These measures demonstrate a recognition by governments of lithium’s strategic importance for the global energy transition and a desire to support their domestic industries through market downturns,” the natural resource governance expert concluded.
