Lithium stands as a cornerstone element in the modern technological and industrial landscape, underpinning transformative advancements across energy storage, transportation and electronics. Its unique physicochemical properties – low atomic mass, high electrochemical potential and excellent ionic conductivity – make it irreplaceable in lithium-ion batteries (LIBs), which have become the dominant power source for portable electronics, electric vehicles (EVs), and grid-scale energy storage systems. The global transition toward decarbonization and sustainable development has further elevated lithium’s strategic importance, positioning it at the nexus of clean energy infrastructure and industrial innovation.
The centrality of lithium in battery technology is evident in its role as the charge carrier in LIBs, where it enables high energy density, long cycle life, and relatively low self-discharge rates. These attributes have driven the widespread adoption of LIBs beyond consumer devices into mission-critical applications such as EVs and renewable energy integration. For instance, the deployment of solar and wind power, which are inherently intermittent, relies heavily on battery storage to ensure grid stability and reliability. In this context, lithium-based systems provide scalable solutions that align with national and international climate goals, including those outlined in the Paris Agreement. Projections indicate that global lithium demand could increase fivefold by 2030, primarily fueled by the expansion of the EV market and stationary storage installations.
Beyond batteries, lithium plays a vital role in multiple industrial sectors. It is used in the production of heat-resistant glass and ceramics, lightweight alloys for aerospace applications, greases with extreme temperature tolerance, and pharmaceuticals such as mood-stabilizing drugs. However, the most significant driver of lithium consumption remains the battery sector, where it accounts for over 60% of total usage and is expected to reach up to 80% by 2025. This growing dependence underscores the need for secure and sustainable supply chains, particularly as geopolitical competition intensifies over access to lithium resources.
Geographically, lithium reserves are concentrated in a few key regions, notably the “Lithium Triangle” encompassing parts of Chile, Argentina and Bolivia, which holds an estimated 54% of the world’s known lithium resources. Additional deposits exist in Australia, China and emerging sources in North America and Europe. Extraction methods vary depending on the resource type: brines, pegmatites (hard rock) or clays. Brine-based extraction, particularly from salt flats (salars), dominates current production due to lower costs and simpler processing compared to hard-rock mining. However, conventional brine operations face environmental challenges, including substantial water usage and ecosystem disruption, especially in arid regions like northern Chile, where lithium mining competes with agricultural and indigenous communities for scarce freshwater resources.
In response to these concerns, innovative extraction technologies are being developed to improve efficiency and reduce ecological impact. Direct lithium extraction (DLE) methods, such as adsorption using ion-sieves, solvent extraction, electrodialysis, and hybrid organic-inorganic materials, offer promising alternatives by enabling selective recovery of lithium from low-concentration brines with minimal waste generation.
Notably, DLE can be integrated with geothermal energy plants, allowing simultaneous electricity generation and lithium harvesting while significantly reducing carbon emissions – a dual benefit that enhances both economic viability and environmental sustainability. Recent advances in material science have also led to the development of novel electrode materials, such as MXenes (a class of two-dimensional inorganic compounds along with MBorenes, that consist of atomically thin layers of transition metal carbides, nitrides, or carbonitrides) and silicon-based composites, aimed at improving battery performance and extending device lifespans.
Despite progress in extraction and utilization, end-of-life management of lithium-containing products presents another critical challenge. Current recycling rates for LIBs remain alarmingly low, with less than 5% of spent batteries globally being effectively recycled. This inefficiency not only results in the loss of valuable materials but also contributes to environmental pollution and resource insecurity. To address this, closed-loop recycling strategies based on hydrometallurgical, pyrometallurgical, and direct regeneration techniques are gaining traction. Innovations such as green leaching processes using formic acid and oxygen or biosorption methods offer more sustainable pathways for recovering lithium from spent cathodes without generating hazardous byproducts.
From a policy and governance perspective, ensuring the responsible stewardship of lithium requires coordinated action across nations and industries. Sustainable mining practices, equitable benefit-sharing mechanisms, transparent supply chains, and investment in recycling infrastructure are essential components of a resilient lithium economy. Moreover, digital tools such as data-driven health estimation models and lifecycle assessment frameworks enable better forecasting of battery degradation and optimization of manufacturing processes, contributing to overall system efficiency.
Looking ahead, the continued evolution of lithium-dependent technologies will hinge on overcoming technical, environmental, and socioeconomic barriers. Research into alternative chemistries, such as solid-state batteries and sodium-ion systems, may alleviate some pressure on lithium supplies, but none yet match its performance profile for high-demand applications. Therefore, accelerating innovation in extraction, enhancing circularity through advanced recycling, and fostering international cooperation will be paramount in securing lithium’s contribution to a sustainable industrial future.
The existing figures show the comprehensive lifecycle of lithium-ion batteries, spanning from raw material synthesis and cell manufacturing to use-phase integration and eventual recycling via hydrometallurgical routes. This holistic view emphasizes the interconnectedness of production and recovery stages, reinforcing the necessity of adopting circular economy principles to minimize waste and maximize resource efficiency throughout the value chain. As industrial demand continues to rise, integrating sustainability into every phase of lithium utilization will determine the long-term viability of the technologies it powers.