Before John B. Goodenough created the rechargeable lithium-ion battery in 1980, there wasn't much interest in Lithium. By the middle of the following decade the lithium-ion battery became the go-to solution for powering electronics, and demand for the element soared. Lithium is now the main component in batteries that power not just consumer electronics but also an increasing number of electric cars and stationary energy storage systems.
Global lithium production has been growing for the last three decades—sometimes a bit too quickly. It was just 9,500 metric tons in 1995, it passed 100,000 metric tons for the first time in 2021 and 2023 saw the highest annual production at 180,000 metric tons. According to BP’s 2022 Statistical Review of World Energy, around 74% of the lithium mined that year went into batteries, with 14% being used in glass and ceramics and the remaining 12% going to other uses like lubricant manufacturing or aluminum production.
Lithium is the element of choice for high-density rechargeable electric vehicle batteries because it has the highest charge-to-weight ratio, the highest electrochemical potential (i.e. it can take the highest voltage) and the fastest charging speeds. It is also the lightest out of the most commonly used battery metals (the others being nickel, cobalt, manganese, vanadium and lead), and the best when it comes to the number of charge-discharge cycles that it can take without losing capacity.
There are many different types of lithium-ion-based EV batteries with different chemistries. Most of their anodes are made of graphite, while the cathodes are made of lithium mixed with other metals in varying proportions. The most popular are NMC (Nickel Manganese Cobalt), NCA (Nickel Cobalt Aluminum Oxide) or LFP (Lithium Iron Phosphate). Solid-state batteries, which are expected to be the next big thing in the world of electric vehicles, will also use lithium.
In short, it's a bit of a wonder mineral that is seeing a constant increase in demand. If you've ever wondered how lithium is extracted, where it’s extracted from and what the lithium-ion-powered future looks like, read on.
How Is Lithium Extracted?
Lithium is a metal with a light silvery finish that has the same consistency as cheese. In its pure state, you can cut it with a knife. It has one of the lowest melting points of any metal, at 356 °F or 180.5 °C. It is less abundant in nature than other metals, and even in the places where it is found, it’s usually in a low concentration. The mined ore needs to go through various processes before usable lithium compounds are obtained.
The United States Geological Survey (USGS) estimates that the Earth has reserves of about 88 million metric tons of lithium. Only about a quarter of these lithium reserves are currently deemed economically viable for mining and extraction. However, as technology and our ability to detect lithium in nature improve, we expect more deposits to become viable.
Benchmark Minerals says that about 60% of all lithium extracted comes from hard rock, meaning it is mined similarly to most other metals. Rocks containing lithium are mined, then crushed, and lithium and other useful minerals are separated and sent on for further refining. The lithium-containing hard silicate ore is known as spodumene, which is refined into spodumene concentrate that is then sent around the world, where it is used in lithium-ion battery production.
The rest of the lithium that makes up the global supply comes from brines where it is found as lithium chloride. The process of lithium brine recovery is simpler and it involves pumping the mineral-rich water (brine)—which can be found either on the surface or underground—into pools where it slowly evaporates over several months, eventually leaving lithium and other minerals that are gathered and processed. The resulting product is lithium carbonate, which is sent to battery production plants, where it is used in the cathode and electrolyte parts of the battery.
Of the two processes, obtaining lithium from rocks is considerably more energy-intensive. But it is also expected to make up the majority of lithium production, since there’s more lithium in rocks than there is in brine. There is also lithium in ocean water, but in far lower quantities than other ions like sodium, and it currently isn’t worth extracting.
Which Countries Produce The Most Lithium?
According to the MIT Climate Portal, Chile, which mostly extracts lithium from brines, used to be the global lithium production leader. It has now been overtaken by Australia, where lithium is mined out of rocks. China is third. Its production figure is rising quicker than Chile’s, so it will likely move up to the number two spot in a few years.
Argentina is in fourth place, followed by Brazil, and together they produce more lithium than the rest of the world combined. All of the top lithium-producing countries in the world have plans to increase production. They're trying to meet the ever-growing global need, spurred by the growth of the EV and consumer electronics market.
In the US, California is expected to become the country's lithium-producing powerhouse. It has enough resources for an estimated 300 million EVs.
Battery production plants (most of which are in China) get the lithium in the form of what is generically called lithium carbonate equivalent (LCE), regardless of which method it was obtained. They further refine it to be used in battery cells. The average EV battery pack uses 17.6 pounds of lithium, but this varies widely based on the size of the pack and its specific chemistry.
The average lithium quantity per pack today is less than it was a decade ago, and it will keep going down as EV battery technology continues to improve. Lithium is also a fairly abundant element,. It’s not inherently expensive due to scarcity. What drives up the cost are the processes needed to extract it from both ore and brine and ship it around the world, and the limited capacity of current mining and refining facilities.
Lithium is currently valued at around $15,500 per metric ton in carbonate form in China, where most of it is used to make batteries for both electronics and EVs. That’s about 10% more than in 2023, and Mining.com estimates that its price will continue to rise steadily, reaching around $20,000 in 2025. However, it used to be a lot more expensive, with an all-time high of more than $74,000 after a sudden price surge caused by a major supply deficit in 2022.
Is There Enough Lithium For The EV Future?
With estimates regarding how much lithium is on our planet increasing and the quantity needed for each electric vehicle going down, there isn’t a definitive answer to the question of how many EVs we have enough lithium for. With the data that we have today (88 million metric tons of lithium and 8 kg per EV), simple math tells us that known resources should be enough for 11 billion EVs. But not all 88 million metric tons will be mined. More deposits are also likely to be discovered, and the amount needed per vehicle is falling.
Plus, some battery tech breakthroughs on the horizon may drastically reduce our need for more lithium. Innovations in recycling lithium and reviving and reusing it should greatly increase supply, too. That will help reduce our need to mine it and to dispose of it, both of which impose environmental costs. But with just what's available now, we have plenty of lithium left to power our EV transition.
