Critical Minerals and Energy Intelligence

Lithium (Li)

Lithium, atomic number 3, is a soft, silvery-white alkali metal renowned for its exceptional energy density, low weight, and reactivity. With a melting point of 180.5°C, lithium is the lightest solid element and plays a foundational role in the global shift toward electrification and decarbonization.

As demand for electric vehicles (EVs), renewable energy storage, and portable electronics accelerates, lithium’s status as a critical mineral is firmly established—powering the batteries that drive the clean energy transition.

Why lithium matters: strategic applications

Electrification and energy storage

Lithium is indispensable in the transition to sustainable energy due to its unique electrochemical properties:

• electric vehicles (EVs): Lithium-ion batteries are the standard for EVs, offering high energy density and long cycle life. Global EV adoption is projected to drive lithium demand up 84–174% from 2025 to 2030, and as much as 289% by 2035 in growth scenarios

• renewable energy storage: Lithium-based batteries are critical for grid-scale storage, enabling reliable integration of intermittent solar and wind power and ensuring energy availability around the clock

• consumer electronics: Smartphones, laptops, and tablets rely on lithium-ion batteries for lightweight, long-lasting power

Industrial and specialty uses

• aerospace alloys: Lithium is alloyed with aluminum, copper, and manganese to produce strong, lightweight materials for aircraft and advanced manufacturing

• glass and ceramics: Lithium compounds improve thermal shock resistance in specialty glass and ceramics

• lubricants and greases: Lithium hydroxide is a key thickening agent in high-performance lubricants and greases for industrial machinery

Supply and demand dynamics

Demand drivers

• EV and battery growth: The rapid expansion of EVs and stationary energy storage is the dominant force behind surging lithium demand

• technology innovation: Larger battery packs and next-generation battery chemistries are increasing lithium intensity per unit, amplifying demand

• global policy: Ambitious climate targets and government incentives for clean transportation and energy storage are accelerating lithium adoption worldwide

Supply challenges

• production bottlenecks: After years of oversupply, the lithium market is tightening in 2025 due to production cuts, shifting demand, and geopolitical tensions

• resource concentration: The lithium supply chain is highly concentrated, with Australia, Chile, and China dominating global production and refining

• environmental and social concerns: Water-intensive extraction, especially from South American brines, and community opposition in key mining regions pose ongoing risks to supply growth

Major producers

• Albemarle Corporation (USA): the world’s largest lithium producer, with operations in North America, Chile, and Australia

• SQM (Chile): a leader in South American brine extraction and lithium processing

• Ganfeng Lithium (China): a vertically integrated producer with global mining and refining assets

• Tianqi Lithium (China/Australia): a major player with interests in the world’s largest hard-rock lithium mine

Market trends shaping lithium’s future

• clean energy transition: lithium demand will continue to surge as countries invest in EVs, grid storage, and renewable energy infrastructure, cementing its role as the backbone of the battery supply chain

• recycling growth: Lithium-ion battery recycling is expanding rapidly, with North America and Europe scaling up capacity to recover critical materials and reduce reliance on primary supply

• geopolitical dynamics: Trade policies, resource nationalism, and environmental regulations are reshaping the global lithium market, with countries seeking to secure domestic supply chains and maximize economic benefits

Lithium’s unmatched energy storage capabilities make it essential for electrification, renewable energy systems, and advanced manufacturing. As the world pivots toward sustainability and technological innovation, robust lithium demand will persist—solidifying its position as a cornerstone of the modern energy economy.