Critical Mineral Deep Dive: Lithium

This fact sheet from the Environmental and Energy Study Institute describes the role of lithium in the energy transition, its global supply chain, extraction methods, and the environmental and social impacts associated with its production.

• Lithium is designated as a critical mineral by the U.S. Geological Survey and is classified as "highly critical" by the U.S. Department of Energy for the medium term through 2035. Its primary utility lies in high-performance batteries for electric vehicles, grid storage, and consumer electronics due to its electrical conductivity, light weight, and high reactivity.
• Global lithium demand is heavily driven by the transport and energy sectors; in 2025, approximately 90% of demand was for electric vehicle batteries and battery storage, a figure projected to reach 97% by 2035.
• Global production is concentrated in a few regions: Australia produces 37% of the global hard rock lithium supply, while the "lithium triangle" of Argentina, Bolivia, and Chile produces 35% of the global market and holds an estimated 60% of the world's supply in brine deposits.
• The United States relies on imports for over 50% of its lithium consumption, primarily from Chile and Argentina. While the U.S. has various deposits—including the Paradox Basin, Salton Sea, and Smackover Formation—domestic production in 2025 was limited to a single brine facility in Nevada.
• China dominates the refining sector, processing 95% of the world's hard rock lithium and leading in brine refining alongside Chile and Argentina.
• Lithium recycling is currently limited by low collection rates, the reactivity of the mineral, and the fact that electric vehicle batteries are not expected to reach end-of-life in sufficient quantities for cost-effective recovery until after 2030. However, effective recycling could reduce the need for new mines by 25% by 2050.
• Lithium extraction and processing cause significant environmental and social harm, including the consumption of over 65% of local water in Chile's Salar de Atacama and the contamination of water sources for Indigenous communities in Argentina and Chile. In the U.S., 79% of lithium reserves and resources are located within 35 miles of Native American reservations.

APA

Pouy, N. (2026). Critical Mineral Deep Dive: Lithium. Environmental and Energy Study Institute. https://www.eesi.org/papers/view/fact-sheet-critical-mineral-deep-dive-lithium

Chicago

Pouy, Nicole. Critical Mineral Deep Dive: Lithium. Environmental and Energy Study Institute, 2026. https://www.eesi.org/papers/view/fact-sheet-critical-mineral-deep-dive-lithium.

Wikipedia

{{cite report |last1=Pouy |first1=Nicole |title=Critical Mineral Deep Dive: Lithium |publisher=Environmental and Energy Study Institute |date=15 June 2026 |url=https://www.eesi.org/papers/view/fact-sheet-critical-mineral-deep-dive-lithium |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pouy2026critical, author = {Pouy, Nicole}, title = {{Critical Mineral Deep Dive: Lithium}}, institution = {Environmental and Energy Study Institute}, year = {2026}, month = jun, url = {https://www.eesi.org/papers/view/fact-sheet-critical-mineral-deep-dive-lithium}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }