Driving the EV Revolution: The Current State of the Lithium Market
The lithium market is experiencing rapid growth driven by the increasing demand for electric vehicles (EVs) and renewable energy storage solutions. According to recent reports, the global lithium market was valued at approximately $4.3 billion in 2020 and is projected to reach around $8.2 billion by 2025, growing at a compound annual growth rate (CAGR) of 14.3%¹. Lithium has a crucial role in the production of lithium-ion batteries, which are essential for modern electronics and EVs.
The market is dominated by countries with significant lithium reserves, such as Australia, Chile, and China. Australia is the largest producer, contributing about 51% of the world’s supply, followed by Chile with 28%². Leading companies in the lithium market include Albemarle Corporation, Sociedad Química y Minera de Chile (SQM), and Ganfeng Lithium. The robust growth of the lithium market is poised to continue as the transition to green energy accelerates globally.
The United States holds about 4% of the world’s lithium reserves (USGS)³. However, its production capacity has been relatively modest, contributing only a small fraction to the global lithium supply. Major efforts are underway to expand domestic lithium production to meet the growing demand for electric vehicles and renewable energy storage.
² Statista. “Major countries in worldwide lithium mine production from 2010 to 2022.” Statista, 2023.
³ U.S. Geological Survey (USGS). “Mineral Commodity Summaries 2023.” USGS, 2023.
Did you know?
Lithium, the third element on the periodic table, is a highly reactive alkali metal that does not exist freely in nature. Instead, lithium combines with other elements to form various compounds, such as lithium carbonate and lithium chloride. These compounds are commonly extracted from mineral ores and brine pools.
Lithium is a catalyst for technological advancement in multiple sectors
Lithium plays a crucial role in several industries, primarily due to its exceptional properties as a lightweight and highly reactive metal. Its most significant applications include lithium-ion batteries for electronic devices and electric vehicles, ceramics and glass manufacturing, pharmaceuticals, and industrial lubricants.¹
¹ U.S. Geological Survey (USGS). “Mineral Commodity Summaries 2023.” USGS, 2023.
Lithium-ion Batteries
Ceramics and Glass
Pharmaceuticals
Industrial Lubricants
Aerospace and Defense
Aluminum Production
Greases and Lubricants
Metallurgy
Polymer and Chemical Industry
Air Treatment
As battery technology evolves, so does the need for Lithium content
87%
of batteries (LFP & NMC) require approximately
45-60kg
of lithium carbonate during production ¹
¹ Benchmark Mineral Intelligence. 2023 batter intensity estimates of NMC811, NMC622, NMC523, and NMC111
² “The Global Electric Vehicle Market Overview In 2023: Statistics & Forecasts”. Virta Global.
240M
estimated electric
vehicles (EVs) by 2030
10%
of the estimated global fleet
in 2030 will be made up by EVs ²
Lithium in the Media
Lithium: Electrifying the Future
The DOE’s efforts to extract lithium from geothermal brines
U.S. Department of Defense Press Release
DoD enters into an agreement to expand domestic lithium mining for U.S. battery supply chains
Insights on the US Inflation Reduction Act
Lithium supply and battery raw materials report for 2023
Lithium in the Energy Transition: Roundtable Report
A roundtable report on lithium’s role in the energy transition, emphasizing supply chains, market dynamics, and policy needs
Fact Sheet: Lithium Supply in the Energy Transition
Lithium’s vital role in the energy transition along with its supply and sustainability challenges
Corporate Presentation
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