China is poised to overtake Australia as the world's largest lithium miner in 2026 on the back of aggressive state backing and vast lepidolite reserves, Reuters reported Thursday, citing consultancy Fastmarkets.

Chinese miners are forecast to outproduce Australian counterparts by up to 10,000 metric tons in 2026, according to the report.

Despite weak prices and slim profits, China's lithium output is expected to hit 900,000 metric tons by 2035-well ahead of rivals Australia (680,000 metric tons), Chile (435,000 metric tons) and Argentina (380,000 metric tons), Reuters wrote.

Environmental costs and unprofitability haven't slowed production, thanks to local government pressure and Beijing's supply chain ambitions, according to the report. China already refines 70% of the world's lithium and dominates electric vehicle sales with 60% of global sales.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)