# Lithium: Overview

How batteries came to swallow nearly all lithium

Source page: https://www.materialinsights.org/commodities/lithium/overview/

What this tab covers What the commodity is used for, why, in what volumes and with what alternatives, and its chain from mine or field to end user. Also the latest price moves, top recent news, three things to know, and buttons into each tab.

#### Key uses

| Use | Share | Annual volume | Why this commodity | Alternatives |
|---|---|---|---|---|
| **Electric vehicle batteries** | 66% | about 174,000 t Li (about 0.93 Mt LCE) in 2025basis | Lithium is the lightest metal and has the most negative electrode potential, so lithium-ion cells store more energy per kilogram than any commercial alternative. Both LFP and nickel-rich (NMC/NCA) cathodes need lithium carbonate or hydroxide, so EV growth drives the market whatever chemistry wins. USGS MCS 2026 Lithium; Benchmark Mineral Intelligence, 'Global lithium ion battery demand rose 29% in 2025' | Sodium-ion cells (lower energy density, emerging in small cars and two-wheelers) Hydrogen fuel cells for some heavy vehicles |
| **Stationary storage and other batteries (grid, telecom, industrial)** | 18% | about 46,000 t Li in 2025basis | LFP cells have fallen far enough in cost to firm up solar and wind and to replace diesel backup. Benchmark reports stationary storage demand grew more than 60% a year in 2024-2025, the fastest of any lithium use. USGS MCS 2026; Benchmark Mineral Intelligence 2025 and Oct 2026 | Sodium-ion batteries Pumped hydro Flow batteries (vanadium, iron) Lead-acid for some backup uses |
| **Portable electronics (phones, laptops, tools)** | 4% | about 12,000 t Li in 2025basis | Lithium cobalt oxide and NMC cells give the highest energy in the smallest volume, which matters most in phones and laptops. Lithium cost is a tiny part of the device price. USGS MCS 2026; Benchmark Mineral Intelligence 2025 | Nickel-metal hydride (older, heavier) No practical substitute in smartphones today |
| **Ceramics and glass** | 4% | about 10,500 t Li in 2025basis | Lithium lowers melting temperature and thermal expansion, making heat-resistant glass-ceramic cooktops and ovenware. Spodumene and petalite concentrates are used directly, without chemical conversion. USGS MCS 2026 Lithium | Sodic and potassic fluxes (USGS) Borosilicate glass for some cookware |
| **Lubricating greases** | 2% | about 5,300 t Li in 2025basis | Lithium-12-hydroxystearate grease stays stable across a wide temperature range and resists water, so it is the default grease for vehicle and industrial bearings. USGS MCS 2026 Lithium | Calcium and aluminium soap greases (USGS) Polyurea greases |
| **Other: air treatment, continuous-casting mould flux, medical and others** | 6% | about 15,800 t Li in 2025basis | Lithium bromide and chloride absorb moisture in industrial air conditioning; lithium in mould powders speeds steel casting; lithium carbonate treats bipolar disorder. Each niche values a specific chemical property. USGS MCS 2026 Lithium | Other desiccants and fluxes in industrial uses No direct substitute for lithium salts in some psychiatric treatment |

 USGS 2025 global end-use shares (batteries 88%). The battery share is split using Benchmark's 2025 battery demand mix by GWh (EV 75%, portables 5%, storage and other 20%), so the battery sub-shares are indicative. Benchmark puts 2026 lithium demand at 2.11 Mt LCE, 92% from batteries.

#### From mine to user

1. **Exploration and resource definition** Brine salars in Chile, Argentina and Bolivia, pegmatites in Australia, Zimbabwe, Brazil, Mali and Canada, and clays in the US; measured and indicated resources total about 150 Mt Li (USGS 2026).
2. **Mining or brine pumping** Hard rock is blasted and hauled from open pits; brine is pumped from wells beneath salt flats.
3. **Concentration** Spodumene is crushed and upgraded by dense-media separation and flotation to about 6% Li2O (SC6); brine is concentrated in evaporation ponds over many months.
4. **Chemical conversion** Concentrate is roasted and acid-leached, and brine is purified, to make battery-grade lithium carbonate or hydroxide; China converts most of the world's spodumene and exported 80% of traded hydroxide by value in 2024 (UN Comtrade).
5. **Cathode active material** Lithium salts are reacted with iron phosphate (LFP) or nickel-manganese-cobalt precursors (NMC) in China, Korea and Japan.
6. **Cell and pack manufacture** Cathode, graphite anode, electrolyte and separator are assembled into cells; global lithium-ion demand reached about 1.59 TWh in 2025 (Benchmark).
7. **End use** EVs took 75% of 2025 battery demand, with storage and electronics the rest (Benchmark).
8. **Recycling** Black mass from scrap cells is leached to recover lithium, nickel and cobalt; the EU end-of-life recycling input rate is still 0% (EU CRM 2023), but Benchmark expects recycling to supply almost half of lithium by 2050.

#### Price movement snapshot 2026-10-25

No public daily or monthly benchmark price for this commodity in the datasets used.
 World production 602k tonnes, 2024 Largest producer Australia 38.21% of world Reserve life 128 yrs reserves ÷ 2025 output

#### Three things to know

- World lithium production, measured as oxide, more than tripled from 2020 to 2024 (World Mining Data).
- US battery-grade lithium carbonate averaged $63,700 per ton in 2022 and $9,000 in 2025 (USGS).
- Chile supplied 75.3% of world lithium carbonate exports in 2024, while China supplied 80.1% of hydroxide exports (UN Comtrade).

#### Top recent news snapshot 2026-10-25, last 30 days

- [Chinese lithium prices tumble to nearly 10-month low on demand concerns](https://news.google.com/rss/articles/CBMioAFBVV95cUxNUUhnRmwxRVBjTl9MMzlNOURtcDI3cnl5ZVBWc3lpVUNPTWNwOVZvUTJaaElLOFNCVXhwR0h4c0VKT1l6Nm1JQTVhTUxUZDdhVmp4Tm5nWG5sZ1cxZEFPYlhyUUVCZUlzcE1MVTlOa0hPR09qV25UekRaY21lRHY3c096RUY1clprektya01LbDVQYzU2ZDNHVVNENDdrY2dj?oc=5)Mining.com · 2026-10-12
- [TRADE REVIEW: Asian lithium market likely to ease late Q4 on feedstock arrivals](https://news.google.com/rss/articles/CBMi6AFBVV95cUxOYW1PZUFvRW5sbkxCVVlMZDdwODh4U3Q2MWFBa1NqZ2N3Ykh0MnVXTHR0eVFFT0F1U1FUUjR0aTVkeFRza0xXWjhNNC1DZkdZYy1CZllGZUQ5T3FYS3FoNEJuY0h4anpzS0VMNWlDcUJndnRISk9ZcG1rcU9QZklrWk4zY3VvaFMzRXJWajZSTE43bWMwTWRwQTZEX21BT0ZBRGFtUnpKeDE5RklxNE1XY1JONE9JQmN4RFZMU3BRR2JacW05V202eW5IN2I4MmVGMjA0U0hkMk81ZzNBNUR5dlRheW4yRjh1?oc=5)S&P Global · 2026-10-12
- [EnergyX signs binding $2 billion lithium supply deal with Trafigura](https://news.google.com/rss/articles/CBMiugFBVV95cUxOM1R0cjZHLWx5QzNyYzdrODNRVExyYkJ5eDZGR1EzSl9jdDdaWk1fSEZ5MTFSR2otMjg5bC1pd19IZ2ZPWkxRQmZXMThFZ1JHV0VDbnRMZFBkbnpKSUhod0dsUDA1T2NBT0J5d1dKVDRwRnZIV0c4WnI1WFdNM3lHRWdULVFENzBvcGt5MEVDY1lrX1B6TnM2N2hKejRMQXlLMVRRTDZLcTVoYWt2RDIzQjNOMUxfRjRCOUE?oc=5)Reuters · 2026-10-12
- [Battery Cell Price Review Q3 2026](https://news.google.com/rss/articles/CBMi3gFBVV95cUxPNHdkOXp0MDJVZnlqdnRIbGpqODlfVnlsdVZLdVk2T1BNLXhad29DVzFTeExTV2F2VzBxUUpIa0xVZUFLb3g3cVVYQmpidDZsYkZUbFJwSmJqYTV0Z256MUV3cmx2Rlp2NzhXZlVnVTVkWV9tNFBHMkNSVzhDNVlEX05mS2xDVDcxcjRRNTZrNkZCTXptVzRLQmxFc3dmeDdxeVF1UGlGRmhzZWo4RWJKRmtldXRsRDhiODE1TjNYNjl3MThtSFlnV3V1bVk5czAyVWR1OWt0cjUxZjVlY2c?oc=5)Benchmark Mineral Intelligence · 2026-10-09
- [EnergyX, Trafigura use Fastmarkets lithium prices as offtake basis](https://news.google.com/rss/articles/CBMipgFBVV95cUxOandJc1lCWnJxWjBJVkVDUnVseHFTN3cwRTVrMUIzNW9kREVZVWdfVG9mdy1zMU84Ty1jUG94VmdzdWE1N1RRYkFscm41RE44ZHpfNlQ0VURLVThkZENFTXcxTGtTWmJnbWhGaGhoVnQ5Ym5IUVJUTWFISFRqTzE2SlQtclJIRXl5VFE2TGVVUHRnUlViSGNDNmlYcVgwZGFMekNxWjZ3?oc=5)Fastmarkets · 2026-10-19

#### Chemicals made from it
[CAM Battery cathode materials](https://www.materialinsights.org/chemicals/cathode_materials/)[LiPF6 Battery electrolytes](https://www.materialinsights.org/chemicals/electrolytes/)

#### Read the tabs
[Extraction](https://www.materialinsights.org/commodities/lithium/extraction/)[Production](https://www.materialinsights.org/commodities/lithium/production/)[Stocks](https://www.materialinsights.org/commodities/lithium/stocks/)[Cycles](https://www.materialinsights.org/commodities/lithium/cycles/)[Trading](https://www.materialinsights.org/commodities/lithium/trading/)[Movement](https://www.materialinsights.org/commodities/lithium/movement/)[Criticality](https://www.materialinsights.org/commodities/lithium/criticality/)[Characteristics](https://www.materialinsights.org/commodities/lithium/characteristics/)[Emissions](https://www.materialinsights.org/commodities/lithium/emissions/)

## Other sections

- [Summary](https://www.materialinsights.org/commodities/lithium/index.md)
- [Correlation](https://www.materialinsights.org/commodities/lithium/correlation/index.md)
- [Extraction](https://www.materialinsights.org/commodities/lithium/extraction/index.md)
- [Production](https://www.materialinsights.org/commodities/lithium/production/index.md)
- [Stocks](https://www.materialinsights.org/commodities/lithium/stocks/index.md)
- [Cycles](https://www.materialinsights.org/commodities/lithium/cycles/index.md)
- [Trading](https://www.materialinsights.org/commodities/lithium/trading/index.md)
- [Movement](https://www.materialinsights.org/commodities/lithium/movement/index.md)
- [Criticality](https://www.materialinsights.org/commodities/lithium/criticality/index.md)
- [Characteristics](https://www.materialinsights.org/commodities/lithium/characteristics/index.md)
- [Emissions](https://www.materialinsights.org/commodities/lithium/emissions/index.md)
- [Relationships](https://www.materialinsights.org/commodities/lithium/links/index.md)