Lithium Market Stabilizes in 2025 Amid Rising Demand and Technological Advances
The global lithium market is undergoing significant changes in 2025, driven by rising demand for electric vehicles (EVs) and energy storage solutions alongside advancements in extraction technologies. Despite recent price volatility, industry experts remain optimistic about long-term growth as the clean energy transition continues to accelerate.
At CERAWeek 2025, analysts highlighted the persistent gap between supply and demand. Global lithium consumption rose 27% year-on-year in 2023 to reach 180,000 tons, largely driven by battery production for EVs. However, the U.S. remains heavily reliant on imports, with most lithium sourced from Chile and Argentina, while China accounts for 77% of the graphite used in lithium-ion batteries.
Innovative extraction methods like Direct Lithium Extraction (DLE) are reshaping the industry by offering more sustainable and efficient alternatives to traditional mining. DLE minimizes water usage and environmental disruption while achieving recovery rates of up to 98%. François-Michel Colomar of Adionics emphasized the importance of these technologies in scaling sustainable lithium production to meet growing demand.
Looking ahead, lithium prices are projected to rebound to between $15,000 and $20,000 per ton by 2028 as demand continues to outstrip supply. Recycling initiatives are also gaining traction as a key strategy for supplementing primary lithium sources. Adionics’ technology enables high-purity lithium extraction from recycled batteries without generating toxic waste, supporting a circular supply chain.
The industry faces challenges balancing rapid production with sustainability. Colomar predicts that beyond 2030, advancements in battery technology—such as solid-state cells—and localized supply chains will further transform the sector As global EV sales are expected to reach 54.7 million units by 2030, the pressure on lithium supply chains is likely to intensify.
