Wood Mackenzie Releases Report: Global Lithium Demand to Exceed 13 Million Tonnes by 2050

According to Miningweekly, the latest report Lithium Outlook for the Energy Transition by consulting firm Wood Mackenzie forecasts that under an accelerated energy transition scenario, global lithium demand will surpass 13 million tonnes by 2050—more than double the demand projection under the base case scenario.

Wood Mackenzie warns that without substantial new investment, a supply gap could emerge as early as 2028. Even under the base scenario, existing supply projects will not be able to meet demand by the mid-2030s, requiring sustained investment across the entire industrial chain.

The firm finds that electric vehicles remain the main driver of demand growth, accounting for 72%–80% of lithium consumption across all scenarios. The electric vehicle penetration rate will rise from 75% under the national pledges scenario to 95% under the net-zero emissions scenario by 2040. The report also notes that rechargeable batteries across all applications will account for 96%–98% of total lithium consumption by mid-century.

The company states that recycling can boost supply but will not resolve near-term shortages. Recycling supply will grow at an annual rate of 13%–16%, and volume effects will only materialise in the 2040s when electric vehicle batteries reach the end of their service life.