After two years of price declines and oversupply, 2025 could be a major turning point for the lithium market.Analysts predict that the current surplus—nearly 150,000 tonnes of lithium carbonate equivalent (LCE) in 2024—will shrink to 80,000 tonnes in 2025 as demand for EVs, energy storage, and high-power computing surges. With lithium prices still down from their 2022 highs, could this be the start of a supply squeeze?
🔹 Bank of America forecasts a lithium supply deficit by 2027, warning that production isn’t keeping pace with future demand
🔹 Benchmark analysts estimate the industry needs $116 billion in investment by 2030 to meet global EV production goals
🔹 Precedence Research projects the global lithium market will reach $28.45 billion by 2033, growing at a 12.5% CAGR
But it’s not just EVs driving demand. The rapid rise of AI, data centers, and cloud computing is pushing global energy consumption to record levels. These power-hungry technologies require massive amounts of electricity, increasing the need for grid-scale battery storage. As governments push for renewable energy solutions, lithium-ion batteries are critical for balancing energy supply and demand.
With demand accelerating and new supply struggling to come online, 2025 may mark the beginning of a new bull cycle for lithium. Is the market underestimating just how essential lithium will be in the AI-powered future?
Make sure to subscribe so you don’t miss out on how you can capitalize on this next supply shift.
Daily Miner 