China, Europe, US Face Lithium Shortfall for EV Demand by 2030

A recent comprehensive study published in Cell Reports Sustainability highlights a looming lithium shortage that could hinder electric vehicle (EV) production in China, Europe, and the United States by 2030. Despite potential tenfold increases in domestic lithium mining, none of these regions will meet their lithium demand solely through local production, with Europe facing the largest shortfall—demand is projected at 792,000 metric tons while production may only reach 325,000 metric tons. China and the US might come close to meeting demand if all proposed mining projects proceed rapidly, but the gap will still require significant imports or technological innovations such as lithium-reduced battery technologies. Lithium, crucial for EV batteries and comparable in importance to gasoline during the Industrial Revolution, is unevenly distributed globally, creating supply challenges for major EV markets that account for 80% of worldwide sales. The report suggests that to avoid supply constraints that could derail climate and energy transition goals, strategies including promoting public transport and adopting alternative battery chemistries should be considered. Currently, Europe relies heavily on lithium imports from countries like Chile, Australia, and China, underscoring the urgency to address these supply-demand imbalances.