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| Lithium |
Accelerated Energy Transition Spurs Lithium Shortages
Global lithium demand could exceed 13 million metric tons by 2050 due to accelerating energy transition policies.
However, current supply projects may fail to meet demand beyond the mid-2030s.
Wood Mackenzie highlights deficits emerging as early as 2028 under net-zero scenarios.
Electrification remains the primary lithium demand driver, with electric vehicles consuming 72–80 percent of total demand.
Meanwhile, stationary energy storage systems also grow rapidly, supporting renewable grid integration.
Recycling contributes increasingly but cannot offset near-term supply shortages.
Investment and Recycling: Critical for Market Balance
The lithium industry requires $104–276 billion investment to expand mining, refining, and supply chains.
Significant capital deployment is essential to avoid long-term market imbalances.
By 2050, recycling may supply 2.3–2.7 million metric tons, supporting circular economy goals.
ScrapInsight Commentary
Lithium demand growth will pressure supply chains, elevating prices and incentivizing recycling infrastructure.
Timely investment and regional diversification remain crucial to secure market stability and support net-zero policies.
