Fact Sheet Critical Mineral Deep Dive: Lithium

Lithium is a critical mineral essential for electric vehicle batteries and grid storage, with demand for these applications expected to reach 97% by 2035. While deposits are globally abundant, viable extraction is concentrated in the 'lithium triangle' (Argentina, Bolivia, and Chile) and Australia. The United States relies on imports for over 50% of its consumption as of 2025, with limited domestic production and processing. Extraction and processing cause significant environmental damage, including water depletion in arid regions and toxic contamination, disproportionately affecting Indigenous communities. Recycling remains limited but could potentially reduce the need for new mines by 25% by 2050.

• Lithium is essential for clean energy due to its electrical conductivity, light weight, and reactivity, which enable high battery voltages and longevity. In 2025, approximately 90% of global lithium demand was driven by electric vehicle batteries and battery storage, a figure projected to increase to 97% by 2035.
• Global lithium supply 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, while Australia produces 37% of the global supply from hard rock lithium.
• The United States faces significant supply chain vulnerabilities, relying on imports—mainly from Chile and Argentina—for more than 50% of its lithium consumption in 2025. Domestic production was limited to a single Nevada brine facility in 2025, and China dominates the midstream, processing 95% of the world's hard rock lithium.
• Lithium extraction and processing create severe environmental and social externalities. 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 79% of U.S. lithium reserves and resources are located within 35 miles of Native American reservations.
• Recycling of lithium is currently constrained by low collection rates, the reactivity of the mineral, and the fact that EV 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 requirement for new mines by 25% by 2050.

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} }