The global demand for lithium mining reached USD 3,963.1 million in 2024 and is further anticipated to witness a year over year growth of 6.6% in the year 2025 and clock USD 4,248.4 million in total revenues by the year end. Demand for this lithium mining is projected to reach USD 8,514.8 million by 2035, registering a CAGR of 7.2% during the assessment period (2025 to 2035).
As the world pivots toward cleaner energy and a sustainable future, lithium has emerged as the indispensable cornerstone of this transformation, earning the moniker “the new oil” With approximately 0.6% of the world’s lithium reserves currently extracted, this lightweight metal has become the linchpin for powering electric vehicles (EVs), renewable energy storage, and next-generation technologies.
Unlike oil, lithium offers the promise of decarbonization, making it not just a resource of the present but the cornerstone of a greener tomorrow. As nations race to secure this strategic mineral, the lithium mining market is no longer just an industrial sector-it’s the driving force behind a tectonic shift in global energy paradigms.
Australia, Chile, China, and Argentina hold nearly 70-80% of the world’s lithium reserves. These nations are not just mining giants today; they are set to become economic powerhouses in the near future. Australia leads in hard-rock mining, while Chile and Argentina, part of the “Lithium Triangle,” have vast brine resources.
China is a leader in refining and battery production, giving it control over much of the supply chain. As global demand surges, these countries will see rapid economic growth, cementing their place at the center of the lithium revolution.
| Attributes | Key Insights |
|---|---|
| Estimated Market Value, 2025 | USD 4,248.4 Million |
| Projected Market Value, 2035 | USD 8,514.8 Million |
| Value CAGR (2025 to 2035) | 7.2% |
Lithium mining boom presents a chance for nations like the United States, European countries, and others to innovate and transform their economies. While they may not have vast lithium reserves, these regions are focusing on technological advancements and industrial strategies to capitalize on the lithium revolution.
For example, the United States has initiated projects like the Lithium Valley initiative in California to develop domestic extraction and processing capabilities, using cutting-edge technologies like direct lithium extraction (DLE) to reduce environmental impact. Germany and France are leading the way in building advanced gigafactories to manufacture EV batteries, aiming to rival Asia’s dominance in battery production.
Europe's Green Deal as well as the USA Inflation Reduction Act encourage minimizing fossil fuel dependence by boosting reliance on renewable energies like lithium for energy storage in renewables and electric cars. R&D investments and breakthroughs in solid-state battery technology, which also have high efficiency and safe usage promises, are very high.
These developments enable countries with limited or no lithium reserves to add value through innovation, create employment in high-tech industries, and reduce dependence on imported materials. By embracing lithium, these regions can help build stronger economies while participating in a greener and more sustainable future.
High demand for lithium is chosen by these countries because of its unique properties such as high electrochemical potential, light weight, and energy density, which are well suited for rechargeable batteries. With the pace of acceleration of EV adoption and grid-scale energy storage becoming a crucial step toward renewable energy integration, lithium demand is likely to escalate exponentially.
It is not just the growth of batteries; aerospace, specialty glass, and pharmaceuticals are all dependent on this versatile element. Once a niche market, it is now the backbone of technologies that are reshaping industries and reconfiguring global supply chains.
The lithium mining industry is on the cusp of explosive growth as governments and corporations set ambitious climate targets. Rapid adoption of electric vehicles, rapid improvements in battery technologies, and growing geopolitics focused on resource security are perfect storm conditions for lithium demand.
The competition to ramp up lithium mining and production is not merely about competing for market share-it's actually about setting the new global economic playing field for the 21st century. While nations, such as the United States and Europe, increase their drives to secure lithium resources, the market is no longer a commodity story-it is a strategic imperative that's reshaping the future of industries, economies, and the planet.
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The below table represents the global lithium mining annual growth rates from 2025 to 2035. In this study, we took into consideration the trend of growth in the industry from January to December but differentiated the first half of the year (H1) with respect to H2 for a given year 2025 against the base year 2025. Stakeholders get a full view of the performance of the sector throughout time, which can also be used to identify potential future trends.
Graphs contain sectoral growth in the first and second halves of 2025 to 2035. Originally forecasted to have an annual growth rate of 6.9% in H1 2025, it seems the proposed switch-over into H2 will deliver a much higher increase in that forecast trend.
| Particulars | Value CAGR |
|---|---|
| H1 | 6.9% (2025 to 2035) |
| H2 | 7.5% (2025 to 2035) |
| H1 | 6.7% (2025 to 2035) |
| H2 | 7.8% (2025 to 2035) |
For the next period, H1 2025 to H2 2025, the CAGR is expected to dip slightly down to 6.7% in first half and pick up some pace at about 7.8% in second half. The sector has seen a 20 BPS dip in the first half (H1), but there was a marginal gain of 30 BPS recorded for this sector in the second half (H2).
Discovery of Global Lithium Reserves Unlocking Future Potential
Lithium findings around the world are giving a new direction to the lithium mining market. Asia, Africa, Europe, and North America have recently reported findings. The importance of lithium in clean energy as a strategic resource is gaining momentum and India's reserve, like 5.9 million metric tons in Kashmir along with further potential in Jharkhand and Rajasthan, will be a key hub for the future of lithium. It contains reserves of 5-19 million tons in Arkansas, United States, through which the country can secure improvement to strengthen its domestic supply and have energy independence.
Africa is rapidly taking the lead in the Lithium race. Countries including Zimbabwe, Namibia and Ghana are unlocking massive potential and attracting more investments from the major world players. For example, CATL, the biggest battery manufacturer globally, teamed up with African projects, which will provide it access to supply electric vehicles in the future.
G anfeng Lithium of China is actively involved with Zimbabwe in its extraction plans. Commodity powerhouse Glencore continues to explore opportunities across Africa. Such collaborations point towards a growing role for the African continent in powering global energy shifts.
Large deposits along the German-Czech border in Europe and in Spain, Austria, and France align with the region's clean energy ambitions. These discoveries underscore the role of lithium in shaping industries, driving economies, and securing a sustainable future.
Surge in Global Lithium Investments and Strategic Contracts
Global lithium investments and strategic partnerships are on an all-time high as nations as well as companies race to secure critical resources amid booming electric vehicle and clean energy industries. Recent happenings indicate a strong intent in the direction of broadening lithium exploration and production capability.
For example, the large contract between India and Argentina that involves the mining of lithium blocks in Catamarca province focuses on the need for a reliable supply chain. Huge investments are being made, such as the USD 2.26 billion loan that Lithium Americas Corp. has secured from the USA Department of Energy to develop processing facilities for its Thacker Pass project in Nevada toward increasing USA production of lithium.
The government in Serbia has signed a strategic partnership with the European Commission focused on lithium and other critical materials for a more continent-wide clean energy ambition. Meanwhile, in South America, the Russian firm Uranium One Group is set to commit to invest USD 450 million in the pilot project of lithium production.
These strategic contracts and investments are a reflection of increased global demand for lithium, further boosting economic growth, energy security, and setting a country up to play a vital role in the transition to sustainable energy.
Ongoing Acquisitions and Expansions Driving Lithium Production Capacity
Strategic acquisition, production expansion, and large-scale projects are growing the lithium market. As a matter of fact, Rio Tinto's recent acquisition of Arcadium worth USD 6.7 billion sets an example of the DLE technology, which promises even faster and more efficient means to extract lithium. This would exemplify an increase in technology advanced through industry to meet the burgeoning demands for lithium used in electric vehicles and renewable energy storage.
Several companies are also increasing their production capacities to meet the growing demand in the global market. Arcadium Lithium is expected to increase its capacity to 100,000 metric tons per year by the end of the decade, with an initial expansion to 40,000 metric tons expected by 2024. New projects are also underway in Africa, where Atlantic Lithium's Ewoyaa project is expected to come on stream by late 2024, further increasing the production capacity in the market.
The focus on local lithium production is not limited to any one region, with ongoing projects in Europe, particularly in France and Portugal, moving forward. In France, several exclusive research permits have been awarded for lithium exploration, further cementing the continent's efforts to secure sources of this critical mineral. All these expansions and investments are crucial to meeting future demand and strengthening the global lithium supply chain.
Environmental and Social Challenges Restraining Growth in the Lithium Mining Market
Lithium mining industry faces several significant challenges that could hinder its growth. Environmental concerns are at the forefront, with lithium extraction from hard rock mines and underground brine reservoirs causing major issues.
Hard rock mining produces large carbon emissions, releasing about 15 tons of CO2 for every ton of lithium extracted. It also requires substantial amounts of water and energy. While requiring significantly less carbon output than conventional extraction, this still leaves massive water demands by up to 1.9 million liters per ton of lithium produced, making significant pressure on water supply already limited in drought.
Lithium mining produces significant wastes, such as magnesium and lime byproducts, without effective remediation measures yet. Water pollution from mining poses a threat to aquatic life and contaminates local water supplies, further harming ecosystems. Social concerns also arise, particularly related to the lack of consultation with indigenous communities.
In many cases, mining projects have proceeded without proper consent, limiting these communities' access to information about the risks involved. Some cases, like new developments in Nevada, have seen lawsuits filed by indigenous groups protesting the potential harm to sacred lands. Environmental and social issues are significant barriers that may slow the expansion of the lithium mining market.
Global industry witnessed a CAGR of 5.3% between 2020 and 2024. Total industry revenue reached about USD 4,248.4 million in 2025. During the forecast period, global sales are projected to fetch a CAGR of 7.2%.
The lithium mining industry faced quite a number of challenges, even though vast reserves of the mineral were discovered in the historical period. The countries that reported the most notable lithium deposits included Argentina, Australia, and Zimbabwe. This was because production was slow on account of technical, environmental, and regulatory issues. Extraction methods were energy-heavy and occasioned concerns over carbon emissions and water usage.
Social issues also came into the picture, where protests by the indigenous communities due to no consultation and involvement in decisions regarding mining delayed permits and approvals. This way, even though there were vast reserves, production could not keep up with the sharply increasing demand for lithium based on the markets for electric vehicles and battery storage.
The lithium mining market is likely to see fast growth in the forecasted period. Improvements in DLE technology will also make the production of lithium increasingly sustainable and efficient. Mining activities are likely to grow higher with more investments and partnerships - especially government-supported. It is a global demand for electric vehicle and renewable energy storage.
This would drive up lithium demands, forcing countries to look forward to securing their domestic supplies. This means that as decarbonization pressure increases, the lithium market will be better explored, more rapidly expanded in terms of production, and technologically advanced, creating a more dynamic and resilient market.
Tier 1 companies include industry leaders with annual revenues exceeding USD 200 million. These companies are currently capturing a significant share of 60% to 70% globally. These frontrunners are characterized by high production capacity and a wide product portfolio.
They are distinguished by extensive expertise in manufacturing and a broad geographical reach, underpinned by a robust consumer base. The firms provide a wide range of products and utilize the latest technology to meet regulatory standards. Prominent companies within Tier 1 include Sociedad Química y Minera (SQM), Albemarle, Tianqi Lithium, Ganfeng Lithium, Pilbara Minerals, Mineral Resources, and Arcadium Lithium.
Tier 2 and 3 companies include mid-size and low size players with revenue of below USD 200 million having presence in specific regions and highly influencing the local industry. These players have good technology and ensure regulatory compliance but may not have advanced technology and wide global reach. Prominent companies in tier 2 and 3 include Liontown Resources, Lithium Americas Corp., Sichuan Yahua Industrial and many more.
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The following section talks about the analysis of the sales of lithium mining by major countries. South America countries are expected to depict excellent double-digit growth in the forecast period. All the countries listed below together are expected to achieve a CAGR of approximately 7.4% over the forecast period.
| Countries | CAGR 2025 to 2035 |
|---|---|
| Chile | 7.7% |
| Australia | 7.5% |
| Argentina | 7.3% |
| China | 7.0% |
Australia is the world's biggest lithium miner, accounting for 1.4% of the world's lithium reserves. Its significant lithium deposits are found in Western Australia, particularly in the Greenbushes mine. This region is one of the richest sources of lithium globally, and Australia accounts for nearly half of the world's lithium production. The country's advanced mining technologies and infrastructure support its dominance in the sector.
Due to political stability and strong mining regulations, Australia has become an attractive location for investment. Companies such as Albemarle, Tianqi Lithium, and SQM are very crucial in the Australian production of lithium. Due to growing demand in electric vehicles and energy storage, Australia will continue to increase lithium extraction. Thus, Australia will be the largest lithium supplier globally. Continuous investment and discovery of new deposits will also make Australia one of the leaders in the lithium market.
Chile possesses 0.5% of the world's lithium reserves, but its lithium production is one of the highest in the world. The country's high-altitude Atacama Desert contains a major source of lithium-rich Salar de Atacama. This area has some of the highest lithium concentrations in brine, making extraction more efficient and cost-effective. Chile is part of the Lithium Triangle, along with Argentina and Bolivia, which holds the largest global lithium reserves.
Chile faces some of the same problems as others, such as lack of water and environmental concerns. However, its location is strategic, and extraction costs are relatively low. The Chilean government invests in sustainable mining while providing for the benefit of local communities. With big players such as SQM, Albemarle, and Tianqi Lithium, Chile is set to remain a major supplier of lithium as demand increases globally.
China has only 1.1% of the world's lithium reserves, but its impact is huge on the global market. Its reserves are modest, but it dominates the supply chain of lithium through vast refining and processing capabilities. Its lithium mining projects, particularly in Tibet, are on the expansion list, and strategic focus on securing lithium assets worldwide has made China a leader.
China's further advancement in DLE technology puts it in an even better position. Through control of the processing of lithium, China ensures that it holds a significant share in the global supply of lithium-based products used in batteries. Strong domestic demand for lithium from the growing electric vehicle market will ensure that China continues to play a critical role in the lithium industry, both as a producer and a processor of lithium.
Argentina has 0.3% of the world's lithium reserves and is a key player in the global lithium market, due to its location in the Lithium Triangle, which includes Chile and Bolivia. Lithium resources in Argentina are primarily in brine deposits, which are cheaper and more environmentally friendly than hard rock mining. Already, foreign investments are pouring into Argentina, with companies like Livent, Orocobre, and FMC working on major lithium projects.
Government is striving for fewer regulations as well as maximum benefit extraction of Lithium for its local population. Other countries: Argentina has lithium-rich neighborhoods next to top producers; thus, they will boost the sales to an economical extent to dominate in world markets due to electric and energy storage's rising demands.
The section talks about the growth trajectories of the leading segments in the industry. As far as product type is concerned, the lithium carbonate segment would most likely dominate and gather a share of around 46.8% in 2025.
The purity level, which would account for 75.4% in the year 2025 is the battery grade lithium market of ≥ 99.5%. Thus, potential clients would be facilitated to take proper business decisions for investing through the given analysis.
| Segment | Lithium Carbonate (Product Type) |
|---|---|
| Value Share (2025) | 46.8% |
Lithium carbonate is the best product in the lithium market, primarily because of its role in powering electric vehicle (EV) batteries. The more the demand for clean energy and electric vehicles increases, the more the importance of lithium carbonate grows. It is the core ingredient in lithium-ion batteries, which are used in everything from EVs to smartphones.
Lithium carbonate is also an all-rounder; it finds its applications in ceramics and glass industries. Its stable price and widely known production techniques make lithium carbonate the go-to choice and surpass other lithium compounds like hydroxide and chloride. As electric mobility takes center stage across the world, demand for lithium carbonate is going to skyrocket.
| Segment | Battery-grade lithium (≥99.5%) (Purity level) |
|---|---|
| Value Share (2025) | 75.4% |
Battery-grade lithium is the largest in the lithium market, with a purity of ≥99.5%, which makes it suitable for use in EV batteries and other energy storage solutions. As clean energy and electric mobility continue to gain traction, demand for high-purity lithium continues to increase.
Battery-grade lithium is used in the manufacture of the lithium-ion batteries that power electric cars, smartphones, and a host of other devices. Because of its ability to deliver excellent performance, safety, and extended lifespan, battery-grade lithium remains the first choice for the manufacturers. With more global interest in electric vehicles and renewable energy systems, the demand for battery-grade lithium will certainly increase, making it remain at the top of the market.
Lithium market is becoming fiercely competitive, and the significant players in the global scenario are Albemarle, Ganfeng Lithium, and SQM, together controlling a lion's share of this production. The companies strategize to invest in securing lithium resources, expanding mining operations, and advancing technologies to catch up with growing demand.
As the electric vehicle industry grows, new entrants join the fray to cash in on the increasing demand for lithium. Lithium Americas and Piedmont Lithium are only two companies focusing on developing new mining projects in North and South America, aiming to supply the lithium for EV batteries.
Companies are also embracing novel techniques such as direct lithium extraction (DLE) to stay ahead in competition, which is an effective method of lithium extraction with less environmental impact. Strategic partnerships with governments and local enterprises are also in focus, which will help the companies secure their supply chains and enhance their market position.
As demand grows, competition within the marketplace will continue to increase with the increasing requirement for Li. Companies should adapt with changes in order to improve production practices, thereby serving the growing needs from sectors such as EV fabrication, battery storage, and more electronic equipment.
Industry Updates
Source included in the study are brine, hard rock, and other resources.
Product Type included in the study are lithium carbonate, lithium hydroxide, lithium chloride, and other compounds.
Purity Level included in the study are battery-grade lithium (≥99.5%), and industrial-grade lithium (<99.5%).
Mining method included in the study are open-pit mining, evaporation pond extraction, and direct lithium extraction (DLE).
Countries considered in the study include USA, Argentina, Australia, Brazil, Canada, Chile, China, Portugal, Zimbabwe, Canada, and other Countries.
The global market was valued at USD 3,276.0 million in 2020.
The global market is set to reach USD 4,248.4 million in 2025.
Global demand is anticipated to rise at 7.2% CAGR.
The industry is projected to reach USD 8,514.8 million by 2035.
Lithium carbonate segment dominates in terms of share.
| Estimated Market Size (2024E) | USD 2,340.5 million |
|---|---|
| Projected Market Value (2034F) | USD 3,960.2 million |
| Value-based CAGR (2024 to 2034) | 5.4% |
| Estimated Market Size (2024E) | USD 5,281.6 million |
|---|---|
| Projected Market Value (2034F) | USD 16,628.9 million |
| Value-based CAGR (2024 to 2034) | 12.2% |
| Estimated Year Value (2023E) | USD 11,885.5 million |
|---|---|
| Projected Year Value (2033F) | USD 19,360.2 million |
| Value CAGR (2023 to 2033) | 5% |
| Projected Value (2027) | USD 10,681.1 Million |
|---|---|
| Value-based CAGR | 5.8% |
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