Lithium

Lithium is among the most important materials in the energy transition due to its centrality to battery designs.

Lithium (Li)

Lithium has many uses, including most importantly in the contemporary context its role in multiple battery designs commonly used in electric vehicles. Australia is by far the largest current producer, but the ‘lithium triangle’ of Chile, Bolivia and Argentina contains the bulk of the world’s known reserves of lithium. Current lithium operations have been associated with company-community conflict and violations of Indigenous Peoples’ rights.  

Main uses and applications

Over 70of lithium is used in batteries, including in rechargeable batteries for mobile phones, laptops, digital cameras, energy storage systems and electric vehicles. The use of these batteries in electric vehicles represents one of the most significant uses for lithium batteries, increasing year by year. Lithium is also used in some non-rechargeable batteries for components like heart pacemakers, toys and clocks. Lithium carbonate is also deployed as a medication, while lithium alloys are found in aircraft, bicycle frames and high-speed trains. Lithium oxide is used in special glasses and glass ceramics.  

The principal industrial applications for lithium metal are in metallurgy, where the active element is used to remove of impurities in the refining of such metals as iron, nickel, copper, and zinc and their alloys. 

Key Industries

  • Key Industries Icon Auto
  • Key Industries Icon Electronics
  • Key Industries Icon Energy

Key Countries

Top Producer

Australia

Top Reserves

Chile

Supply Chain Risk

TDi Sustainability's data rates Lithium's association with the following issues as high or very high:

database icon Supply Chain Concentration Risk

Country Governance Risks

Lithium's association with countries experiencing:

firearm icon Violence and Conflict
gavel-and-block icon Weak Rule of Law
group icon Poor Human Rights
building-leaf icon Poor Environmental Governance
Very Low Moderate Very High

Association with ESG issues

TDi Sustainability's data rates Lithium's association with the following issues as high or very high:

children icon Child labour
buildings icon Company-community conflict (non-Annex II)
falling-rocks icon Degraded/fragmented landscapes
silo icon Indigenous Peoples rights
leaf icon Negative biodiversity and conservation impact
factory icon Pollution
Very Low Moderate Very High