Fact Sheet Critical Mineral Deep Dive: Lithium

This fact sheet from the Environmental and Energy Study Institute describes the role of lithium as a critical mineral for clean energy, its global supply chain, extraction and processing methods, and the environmental and social externalities 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 is in high-performance batteries for electric vehicles, grid storage, and consumer electronics, with demand for EV batteries and storage accounting for approximately 90% of global demand in 2025, a figure projected to reach 97% by 2035.
• Global lithium production is concentrated in a few regions. The "lithium triangle" of Argentina, Bolivia, and Chile hosts an estimated 60% of the world's supply in brine deposits and produces 35% of the global market. Australia is the leader in hard rock lithium production, providing 37% of the global supply. China dominates the refining process, processing 95% of the world's hard rock lithium and leading in brine refining alongside Chile and Argentina.
• The United States relied on imports for over 50% of its lithium consumption in 2025, primarily from Chile and Argentina. Domestic production in 2025 was limited to a single brine facility in Nevada, although other lithium-rich areas include the Paradox Basin (Arizona, Colorado, New Mexico, and Utah), the Salton Sea in California, the Smackover Formation in the Gulf region, the Carolinas, and northern New England. Processing occurs at the Kings Mountain facility in North Carolina, with new sites developing in South Carolina and on the Texas-Arkansas border.
• Lithium recycling currently lacks widespread pathways due to low collection rates and the fact that EV batteries are not expected to reach end-of-life in sufficient numbers for cost-effective recovery until after 2030. However, effective recycling could potentially reduce the requirement for new lithium mines by 25% by 2050.
• Lithium extraction and processing cause significant environmental and social harm, particularly in water-stressed regions. In Chile's Salar de Atacama, production consumed over 65% of local water. Toxic waste has contaminated water for Indigenous communities in Argentina and Chile, and a mine in Tibet caused mass fish and livestock deaths. In the U.S., 79% of lithium reserves and resources are located within 35 miles of Native American reservations.

APA

Pouy, N. (n.d.). Fact Sheet Critical Mineral Deep Dive: Lithium. Environmental and Energy Study Institute. https://www.eesi.org/files/FactSheet_CriticalMinerals_Lithium.pdf

Chicago

Pouy, Nicole. Fact Sheet Critical Mineral Deep Dive: Lithium. Environmental and Energy Study Institute, n.d. https://www.eesi.org/files/FactSheet_CriticalMinerals_Lithium.pdf.

Wikipedia

{{cite report |last1=Pouy |first1=Nicole |title=Fact Sheet Critical Mineral Deep Dive: Lithium |publisher=Environmental and Energy Study Institute |url=https://www.eesi.org/files/FactSheet_CriticalMinerals_Lithium.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{pouyndfact, author = {Pouy, Nicole}, title = {{Fact Sheet Critical Mineral Deep Dive: Lithium}}, institution = {Environmental and Energy Study Institute}, url = {https://www.eesi.org/files/FactSheet_CriticalMinerals_Lithium.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }