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.
