The global lithium mining market recorded a value of USD 4.2 billion in 2025 and is expected to grow to a valuation of USD 8.5 billion by 2035 at a CAGR of 7.2%. This growth is driven by the surging demand for lithium, a critical component in lithium-ion batteries used extensively in electric vehicles (EVs), energy storage systems, and portable electronics.
The accelerating adoption of EVs remains the primary factor propelling lithium demand. The International Energy Agency (IEA) reported a 40% increase in EV sales in 2023, intensifying the pressure on battery supply chains. Major lithium producers such as Albemarle Corporation, Sociedad Química y Minera de Chile (SQM), and Tianqi Lithium have invested significantly to increase mining capacities. Albemarle CEO Kent Masters stated in 2024, “Expanding lithium extraction capabilities is essential to meet global clean energy targets and the rising demand for electric vehicles.”
| Attributes | Key Insights |
|---|---|
| Estimated Market Value, 2025 | USD 4.2 billion |
| Projected Market Value, 2035 | USD 8.5 billion |
| Value CAGR (2025 to 2035) | 7.2% |
Australia dominates lithium production globally, contributing over 50% of total output, followed by Chile and China. The Asia Pacific region is expected to lead market growth due to rapid EV manufacturing expansion and supportive government policies. North America and Europe are witnessing moderate growth as they ramp up domestic battery manufacturing and focus on sustainable sourcing.
Countries like the United States and Germany have announced strategic initiatives to secure lithium supply chains and promote environmentally responsible mining practices. Technological advancements, including direct lithium extraction (DLE), are improving lithium recovery efficiency and reducing environmental impacts compared to conventional mining.
Companies adopting DLE technologies are better positioned to comply with environmental regulations and address sustainability concerns. Recycling lithium from used batteries is emerging as a complementary source, helping alleviate supply pressures. Growing demand for renewable energy storage systems to stabilize electricity grids further drives lithium consumption. The combination of EV market expansion, energy storage needs, and technological innovation is projected to sustain strong growth throughout the forecast period.
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 4.2 billion 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.
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
| Report Attributes | Key Insights |
|---|---|
| Estimated Market Value (2025) | USD 4.2 billion |
| Projected Market Value (2035) | USD 8.5 billion |
| CAGR (2025 to 2035) | 7.2% |
| Base Year for Estimation | 2024 |
| Historical Period | 2019 to 2023 |
| Forecast Period | 2025 to 2035 |
| Quantitative Units | Revenue in USD billion; Metric tons of lithium content for volume |
| Sources | Brine, Hard Rock, Other Resources |
| Product Types | Lithium Carbonate, Lithium Hydroxide, Lithium Chloride, Other Compounds |
| Purity Levels | Battery-Grade Lithium (≥99.5%), Industrial-Grade Lithium (<99.5%) |
| Mining Methods | Open-Pit Mining, Evaporation Pond Extraction, Direct Lithium Extraction (DLE) |
| Countries Covered | USA, Argentina, Australia, Brazil, Canada, Chile, China, Portugal, Zimbabwe, Other Countries |
| Key Players | Albemarle, Arcadium Lithium, Ganfeng Lithium, Liontown Resources, Lithium Americas Corp., Mineral Resources, Pilbara Minerals, Sichuan Yahua Industrial, Sociedad Química y Minera (SQM), Tianqi Lithium |
| Additional Attributes | Surging demand for battery-grade lithium from EV manufacturers and energy storage systems is reshaping global extraction and supply chains. Investment in sustainable extraction methods and refining infrastructure is critical to long-term competitiveness. |
| Customization and Pricing | Customization and Pricing Available on Request |
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 4.2 billion in 2025.
Global demand is anticipated to rise at 7.2% CAGR.
The industry is projected to reach USD 8.5 billion by 2035.
Lithium carbonate segment dominates in terms of share.
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Lithium Mining Market
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