Lithium Demand Outlook Remains Strong Through 2040, Driven by EVs and Battery Storage
Lithium prices hover near $22,000 per ton as long-term demand projections remain robust, particularly for electric vehicles (EVs) and battery energy storage systems. Analysts forecast a 9% compound annual growth rate (CAGR) for EV-related lithium demand and an 11% CAGR for battery storage through 2040, with EVs continuing to dominate as the primary demand driver.
Market charts reveal a mixed short-term setup, with spot prices easing from recent highs in March. However, structural tailwinds persist—automakers require supply chain visibility, battery producers need raw material planning, and miners rely on clear long-term signals. By 2040, total lithium demand could approach 5,500 kilotonnes of lithium carbonate equivalent (LCE), with storage applications gaining share.
