The growing demand for electric vehicles (EVS) and expansion of renewable energy storage systems are driving the growth of Lithium Mining Market at a CAGR of 18.6% during the forecast period 2025 to 2035

Market Research Future (MRFR) has published a cooked research report on the “Global Lithium Mining Market” that contains the information from 2019 to 2035.

 The Global Lithium Mining Market is estimated to register a CAGR of 18.6 % during the forecast period of 2025 to 2035.

MRFR recognizes the following companies as the key players in the Global Lithium Mining Market — Albemarle Corporation, Mineral Resources, Arcadium Lithium, Savannah Resources, American Lithium Corp., Lithium Americas, Pilbara Minerals, Sociedad Quimica Y Minera, Tianqi Lithium, Bacanora Lithium and others.

The Global Lithium Mining Market accounted for registering a CAGR of 18.6 % during the forecast period and is estimated to reach USD 17.54 billion by 2035.

The growing demand for Electric Vehicles (EVs) has become one of the primary drivers of the global lithium mining market. Lithium is a crucial component of the rechargeable batteries that power EVs, and as the transition to clean energy accelerates, the need for lithium is expected to surge. EVs offer a more sustainable alternative to traditional internal combustion engine vehicles by producing zero emissions, which aligns with global efforts to reduce carbon footprints and mitigate climate change. As governments worldwide implement stricter environmental regulations and incentives to promote EV adoption, the demand for lithium-ion batteries—which rely heavily on lithium—has skyrocketed.

The automotive industry's shift toward electrification is perhaps the most significant factor in driving lithium demand. Major automakers such as Tesla, General Motors, and Volkswagen have announced ambitious plans to transition their vehicle fleets to electric power over the next few decades. For instance, Tesla, a leader in the EV market, has seen remarkable growth in demand for its vehicles, directly contributing to the surge in lithium demand. In 2025, the revenue in the Electric Vehicles market is projected to reach a staggering US$828.6bn worldwide. Looking ahead, it is expected that the market will demonstrate a steady annual growth rate (CAGR 2025-2029) of 6.95%. This growth will ultimately lead to a projected market volume of US$1,084.0bn by 2029.

In addition to the automotive sector, lithium is also critical for other energy storage applications, such as those used in renewable energy systems. Lithium-ion batteries are widely used in solar and wind energy storage, enabling the storage of electricity generated from intermittent renewable sources. With the global push toward decarbonization and the expansion of renewable energy, this additional demand for lithium further emphasizes the importance of securing a stable and sustainable supply.

Countries and companies are responding to this growing demand by ramping up lithium production. For example, Australia, the world's largest producer of lithium, primarily extracts the metal from spodumene ore. In the "Lithium Triangle" of South America—comprising Chile, Argentina, and Bolivia—lithium is extracted from brine pools found in salt flats. Chile, a leading producer in this region, has seen its lithium industry grow in tandem with the global rise in EV demand. China, a major consumer and producer of lithium, has also been heavily investing in both mining operations and battery production to secure its dominance in the electric vehicle supply chain.

In conclusion, the growth of the EV market is undeniably the dominant force driving the expansion of the global lithium mining market. As the world accelerates its transition to electric mobility and renewable energy, the need for lithium is set to intensify, prompting both opportunities and challenges in the mining and supply chain sectors. The next few years will likely see continued investments in both lithium mining and innovative, sustainable extraction methods to meet the growing demands of a cleaner energy future.

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Segmental Analysis

The Global Lithium Mining Market has been segmented based on Source, by Type and by Application.

Based on Source, this segment includes Brine and Hard Rocks. The Brine segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Brine sources, primarily found in salt flats and underground aquifers, have been a traditional and dominant source of lithium production, particularly in regions like the Lithium Triangle in South America, encompassing Chile, Argentina, and Bolivia. The extraction process involves pumping lithium-rich brine to the surface, where it is evaporated to concentrate the lithium before being chemically processed to produce lithium carbonate or lithium hydroxide. Brine extraction offers a lower cost and energy-efficient method compared to hard rock mining, especially for large-scale operations. However, brine mining faces environmental challenges such as significant water usage and potential disruption of local ecosystems, which can lead to regulatory scrutiny.

Based on Type, this segment includes Hydroxide, Carbonate, Chloride, Concentrate. The Hydroxide segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. Lithium hydroxide is a critical component in the production of high-energy-density batteries, especially for electric vehicles (EVs) and energy storage systems. It is used to produce high-nickel-content lithium-ion batteries, which offer better performance in terms of energy density and longevity. As the demand for EVs continues to rise, the need for lithium hydroxide is growing rapidly. The production of lithium hydroxide requires a more complex process than lithium carbonate, involving the conversion of lithium carbonate or other lithium compounds into lithium hydroxide. This process can be more energy-intensive, making it relatively more expensive. Despite these challenges, lithium hydroxide is becoming increasingly important due to its use in next-generation battery chemistries that are expected to dominate the EV market.

Based on Application, this segment includes Battery, Ceramics and Glass, Lubricants and Greases, Polymer, Flux Powder, Refrigeration, Others. The Battery segment dominated the global market in 2024, while it is projected to be the fastest–growing segment during the forecast period. The battery segment is the largest and fastest-growing application for lithium, driven primarily by the booming electric vehicle (EV) market and the increasing demand for energy storage systems. Lithium-ion batteries, which are used in EVs, consumer electronics, and renewable energy applications, require lithium compounds like lithium carbonate and lithium hydroxide. The shift toward electric vehicles as a cleaner, more sustainable mode of transport has created a massive surge in demand for lithium-based batteries, making the battery sector the key driver of growth in the lithium mining market. This trend is expected to continue as governments around the world enforce stricter emission regulations and as the adoption of renewable energy storage systems increases.

Regional Analysis

Geographically, the Global Lithium Mining Market has been segmented into North America, Europe, Asia-Pacific, South America, Middle East & Africa.

Major demand factors driving the Asia-Pacific market are the growing demand for electric vehicles (EVS) and expansion of renewable energy storage systems. Asia Pacific is the largest and most dominant region in the global lithium mining market, with China being the key player in both lithium production and consumption. China controls a significant portion of global lithium supply and has extensive investments in lithium extraction and processing, particularly from hard rock mining in countries like Australia. The region's booming electric vehicle industry, combined with a strong emphasis on renewable energy and technological innovation, drives the demand for lithium-ion batteries. Countries like Japan and South Korea are also significant consumers of lithium for their robust electronics industries and electric vehicle production. As the largest producer and consumer of lithium-ion batteries, Asia Pacific is expected to maintain its leadership in the market, with further investments in mining and battery recycling technologies aimed at securing a steady supply of lithium to meet growing demand.

In North America, the United States is the largest lithium producer in the region, with emerging lithium mining projects in Nevada, and a growing interest in securing domestic lithium supply to reduce dependence on imports, especially from China and South America. The U.S. government has also implemented policies to support the development of lithium extraction and processing industries to meet the rising demand for EVs and energy storage. Canada, although not a major producer, is also exploring its lithium resources, with a focus on both brine and hard rock sources. The region’s market growth is supported by a strong automotive and technology sector, along with increasing investments in green energy initiatives, further driving demand for lithium.

Europe is witnessing rapid growth in lithium demand due to the region’s push for electric vehicle adoption, renewable energy infrastructure, and a commitment to achieving net-zero emissions. Countries like Germany, France, and Sweden are investing heavily in EV manufacturing, which is boosting the demand for lithium-based batteries. While Europe does not have substantial lithium production compared to other regions, it relies on imports, primarily from South America and Australia. However, European countries are increasingly focused on securing a sustainable and local supply chain for lithium through exploration and mining projects, as well as recycling initiatives. The European Union has also introduced policies to reduce dependency on foreign lithium sources and increase domestic production capabilities. As the EV market grows in Europe, the demand for lithium will continue to rise, creating opportunities for regional mining ventures.

South America is home to some of the largest and most well-known lithium reserves, particularly within the Lithium Triangle, encompassing Chile, Argentina, and Bolivia. The region’s vast salt flats and brine sources provide an abundant and cost-effective supply of lithium. Chile and Argentina are already significant players in the lithium market, with large-scale lithium extraction operations and production of lithium carbonate and hydroxide. Bolivia, despite having some of the largest lithium reserves globally, has faced challenges in developing its lithium resources due to political instability and underdeveloped infrastructure. South America's lithium production is crucial to meeting global demand, especially as the growth of the electric vehicle industry accelerates. The region continues to attract investments and partnerships from international companies seeking to tap into its vast lithium resources. However, environmental concerns and regulatory challenges related to water usage and local community impacts continue to pose challenges for sustainable lithium mining in the region.

The Middle East & Africa is a smaller player in the global lithium mining market, with limited production of lithium compared to other regions. However, the region's strategic location and growing investments in renewable energy and electric vehicles present opportunities for future market expansion. Some African countries, particularly Zimbabwe and Namibia, are known to have significant lithium resources and are seeing increasing interest from international mining companies looking to tap into these untapped reserves. The Middle East is also exploring opportunities for lithium extraction in response to its growing focus on diversifying its energy sources and developing more sustainable infrastructure. While the lithium mining market in the region is still in its early stages, there is potential for growth as the demand for lithium-ion battery production and energy storage solutions increases in the coming years.

Key Findings of the Study

• The Global Lithium Mining Market is expected to reach USD 17.54 billion by 2035, at a CAGR of 18.6% during the forecast period.


• The Asia-Pacific region accounted for the fastest-growing global market.


• Based on the Application, the Battery segment was attributed to holding the largest market in 2024.


• Albemarle Corporation, Mineral Resources, Arcadium Lithium, Savannah Resources, American Lithium Corp., Lithium Americas, Pilbara Minerals, Sociedad Quimica Y Minera, Tianqi Lithium, Bacanora Lithium are some of the players in the market.