Topline

Researchers have discovered a buildup of lithium – a key ingredient in lithium-ion electric vehicle batteries – in Arkansas that, if recovered, could far exceed the projected global demand for lithium in car batteries in 2030.

Important facts

Important background

Lithium demand is expected to reach 1.5 million tons by 2025 and more than three million tons by 2030, growing exponentially due to increased demand for electric vehicles. According to a 2024 USGS report, electric vehicles accounted for 87% of lithium consumption. According to the International Energy Agency, nearly 14 million new electric vehicles were registered worldwide last year, with sales expected to rise 35% from 2022. According to the U.S. Department of Energy, battery cell production in North America will exceed 1,200 gigawatt hours by 2030, enough to supply at least 12 to 15 million new electric vehicles annually.

Where is lithium produced?

Australia, Chile and China – the leader in electric vehicle sales – are the top three lithium producers, the World Economic Forum reported. Australia produces more than 50% of the world's lithium, with the majority of lithium processing taking place in China. With the new discovery in the brines of the Smackover Formation, there is “potential for increased U.S. production to replace imports,” USGS Director David Applegate said in the news release. Currently, the U.S. still relies on imports from Chile and Argentina for the majority of its lithium, according to S&P Global. Although the U.S. has large reserves of lithium, it produces less than 2% of global supply, and proposals for mining operations face opposition from climate activists. The Biden administration has encouraged various investments in lithium processing domestically – as part of the 2022 Inflation Reduction Act, energy companies were incentivized to extract and process materials used in electric vehicle batteries in the US to qualify for tax credits .

What you should pay attention to

The study did not estimate how much lithium could be extracted from the brines using newer methods. However, lithium can also be obtained from the brine waste stream generated by oil and gas operations, the study says. Extraction projects are already underway in the brines of the Smackover Formation.

Further reading

The Lithium Boom: What's Holding Back a Lithium Rush in the US? (WBUR)