Commodity profile – Lithium

The document details the global lithium landscape, highlighting the dominance of Australia, Chile, and China in mining and refining. It analyzes the shift in demand toward battery manufacturing, which now accounts for 87% of total lithium use, and examines the technical pathways for extraction, including brine-based, hard-rock, and emerging clay-based methods. The report also addresses geopolitical risks, such as export bans in Zimbabwe, and environmental concerns, specifically water scarcity in producing regions and the GHG emissions intensity of different processing routes.

• Global lithium production is highly concentrated, with Australia, Chile, and China accounting for 76% of mined output in 2024. China further dominates the downstream value chain, holding a 65% global share of lithium compounds production and 57% of refining supply in 2024.
• Lithium demand has shifted dramatically toward the energy transition; battery manufacturing represented 35% of demand in 2015 but rose to 87% by 2024. World lithium consumption for batteries grew from 12,000 mt of contained lithium in 2015 to 191,000 mt in 2024, driven largely by China's electric vehicle (EV) sector.
• Lithium reserves are primarily distributed across three deposit types: salar-brine deposits (57%), hard rock (26%), and other conventional/unconventional sources (9%), with volcano-sedimentary deposits making up 8%.
• Extraction methods vary by cost and environmental impact. Hard-rock mining is energy-intensive with higher operating costs but shorter development timelines. Brine evaporation has lower operating costs but a high water footprint and high upfront capital costs. Direct Lithium Extraction (DLE) is an emerging technology that may reduce land and water use.
• Geopolitical and regulatory interventions are increasing to secure supply and promote domestic value addition. Examples include Zimbabwe banning raw lithium ore exports and later announcing a ban on lithium concentrates by 2027, and the US Inflation Reduction Act creating sourcing requirements for EV tax credits.
• The environmental profile of lithium varies by processing route, with hard-rock lithium carbonate production showing higher GHG emissions intensity (17.05 tCO2 per metric tonne of LCE) compared to brine-based lithium carbonate (5.68 tCO2 per metric tonne of LCE).
• Secondary supply from recycling is an emerging source, accounting for approximately 3.5% of global lithium production in 2024, primarily centered in China.

APA

International Institute for Sustainable Development (2026). Commodity profile – Lithium. https://www.iisd.org/system/files/2026-06/commodity-profile-lithium.pdf

Chicago

International Institute for Sustainable Development. Commodity profile – Lithium. 2026. https://www.iisd.org/system/files/2026-06/commodity-profile-lithium.pdf.

Wikipedia

{{cite report |author=International Institute for Sustainable Development |title=Commodity profile – Lithium |date=June 2026 |url=https://www.iisd.org/system/files/2026-06/commodity-profile-lithium.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{internationalinstituteforsustainabledevelopment2026commodity, author = {{International Institute for Sustainable Development}}, title = {{Commodity profile – Lithium}}, institution = {International Institute for Sustainable Development}, year = {2026}, month = jun, url = {https://www.iisd.org/system/files/2026-06/commodity-profile-lithium.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }