Uses & Applications

Applications and End-Uses for Lithium

Lithium (Li) is a high-criticality battery metal with a diverse range of industrial and technological applications. As global demand for advanced materials intensifies, understanding where and how Lithium is consumed provides essential context for supply chain planning, investment analysis, and policy development.

Key Applications

The primary end-uses of Lithium span multiple sectors, each contributing to its classification as a critical material. The following applications represent the most significant sources of global demand:

• Lithium-ion batteries for EVs — Lithium plays a vital role in lithium-ion batteries for evs, where its unique physical and chemical properties provide performance advantages that are difficult to replicate with alternative materials.
• Energy storage systems — Lithium plays a vital role in energy storage systems, where its unique physical and chemical properties provide performance advantages that are difficult to replicate with alternative materials.
• Ceramics and glass — Lithium plays a vital role in ceramics and glass, where its unique physical and chemical properties provide performance advantages that are difficult to replicate with alternative materials.
• Lubricating greases — Lithium plays a vital role in lubricating greases, where its unique physical and chemical properties provide performance advantages that are difficult to replicate with alternative materials.
• Pharmaceutical applications — Lithium plays a vital role in pharmaceutical applications, where its unique physical and chemical properties provide performance advantages that are difficult to replicate with alternative materials.

Sector Breakdown

The largest consuming sector for Lithium is lithium-ion batteries for evs, which accounts for a substantial share of global demand. The second most significant application is energy storage systems, which has shown strong growth in recent years driven by technology adoption and regulatory requirements. Emerging applications across clean energy, defense, and advanced manufacturing are expected to expand the demand profile for Lithium in the coming decade.

Demand Outlook

With a criticality level of high and a supply risk rating of high, the demand trajectory for Lithium is closely monitored by governments and industry analysts. Its inclusion on the USGS critical minerals list underscores the strategic importance of securing stable supply for domestic industries. The European Union has similarly recognized its importance through inclusion on the EU Critical Raw Materials list. Growing demand from electrification, digitalization, and defense modernization programs is expected to place additional pressure on existing supply chains.