Areas of application, demand and price development
Lithium is the lightest metal in the world - reactive, conductive and, above all, increasingly important in industry. In the modern world, battery production would be unthinkable without it. It forms the basis for the production of lithium-ion batteries in particular - whether in electric cars, smartphones, laptops or stationary energy storage devices.
The raw material occurs in two forms: bound in hard rock (e.g. spodumene, as in Australia) or in salty lakes (“salars”), such as those found mainly in South America. This affects both extraction costs and sustainability.
Main areas of application for lithium
- Electromobility - particularly through the use of lithium-ion batteries and the growing segment of lithium iron phosphate batteries
- Energy storage - for households, businesses and power grids with the help of lithium batteries
- Electronic devices - such as smartphones, tablets and notebooks
- Industrial applications - in glass, ceramics and lubricants
- Health & nutrition - lithium as a medicine and dietary supplement
Supply and demand
The global demand for lithium has grown exponentially in recent years. In 2010, consumption was around 20,000 tons of pure lithium; by 2020, this figure had more than tripled to around 65,000-70,000 tons - equivalent to around 292,000 tons of lithium carbonate equivalent (LCE).
In 2010, batteries accounted for less than 30% of global lithium use. The rest was accounted for by industrial applications such as glass, ceramics and lubricants. By 2019, the battery share had already risen to over 50% - particularly due to the upturn in electric vehicles.
By 2024, demand will have increased to around 1 million tons of LCE - almost tripling in just four years.
Reasons for rising demand:
- Global e-vehicle boom
- Expansion of electricity storage systems with lithium batteries
- Subsidized infrastructure projects and investments in green technologies
Causes of temporary declines in demand:
- Stock surpluses at cell manufacturers
- Economic slowdown in China
- Reduction in purchase premiums for e-vehicles in Europe
- Temporary oversupply due to newly established production capacities
Lithium price trend
Lithium carbonate prices (battery grade, nominal) have experienced extreme fluctuations since 2015. The following chart shows the historical trend from 2015 to 2024 and forecasts up to 2030:
The investment bank Goldman Sachs expects a gradual recovery from 2025 onwards. For lithium carbonate, Goldman forecasts around USD 11,000/tonne in 2025, USD 13,250 in 2026, USD 15,646 in 2027 and USD 17,077 in 2028, which would mean an increase of 75% on today's lithium price.
The economic sector of lithium companies
Companies that mine and process lithium are usually active in the mining or chemical industries. However, with the boom in battery production and the transition to e-mobility, they have increasingly become part of a high-growth tech commodities sector.
From 2020 to 2022, shares in lithium companies boomed. Many investors invested in stocks such as Albemarle, SQM or Arcadium Lithium. Since 2023, the market has normalized due to overproduction and price corrections - which could offer new entry opportunities for investors in the long term.
Opportunities in the lithium sector:
- Sustained growth in the market for lithium batteries
- Government subsidies worldwide
- Innovative new extraction technologies such as direct lithium extraction
- Increasing use of lithium iron phosphate batteries in mid-range vehicles and stationary storage systems
Risks in the lithium sector:
- High price volatility for lithium
- Political intervention in producing countries such as Chile
- Environmental criticism due to water consumption
- Competition from alternative storage technologies (e.g. sodium ions or solid-state cells)
Obermatt Selection
With a market capitalization of around USD 15 billion, Albemarle is the largest listed producer of battery lithium. The company is active in Chile, Australia and the USA and is a technological leader in the processing of lithium compounds.
Pros: Market leadership, vertical integration, broad customer base
Cons: Dependence on the price of lithium, competition from China
 360° View | 44 |  | |
 Sentiment | 8 |  | |
 Value | 64 |  | |
 Growth | 77 |  | |
 Safety | 61 | | |
 Combined | 85 | |
SQM (Sociedad Química y Minera de Chile)
The Chilean company extracts lithium from the Atacama Desert at very low cost. In addition to lithium, SQM also produces fertilizers and chemicals for industry and nutrition.
Pros: Cost efficiency, expertise in brine extraction
Cons: Environmental regulations, state participation requirements
| 360° View | 88 | | |
| Sentiment | 49 | | |
| Value | 87 | | |
| Growth | 89 | | |
| Safety | 41 | | |
| Combined | 100 | |
Rio Tinto – now a lithium heavyweight too
Rio Tinto is one of the largest raw materials companies in the world. With the purchase of Arcadium Lithium in March 2025, the company is entering the fast-growing lithium market directly. Arcadium had deposits in Argentina and Australia and was considered a fast-growing player in the market for lithium shares.
Pros: Financial strength, access to important projects through the takeover
Cons: Integration risks, social conflicts at production sites
| 360° Sicht | 50 | | |
| Sentiment Rang | 65 | | |
| Value-Rang | 43 | | |
| Wachstums-Rang | 31 | | |
| Sicherheitsrang | 77 | | |
| Kombinierter Rang | 42 | |
Lithium as an investment - attractive in the long term, but volatile
Lithium remains one of the most important raw materials of the 21st century. From smartphones to electric cars, from home batteries to grid infrastructure - without lithium batteries, the energy transition is almost inconceivable.
The lithium sector offers attractive prospects for investors: The high growth momentum for lithium-ion batteries and lithium iron phosphate batteries, the political and economic support worldwide as well as a wide range of investment opportunities - such as lithium stocks - speak for the future potential of the raw material.
At the same time, it is important to keep an eye on significant risks. These include the high price volatility of a cyclical raw materials market, political uncertainties in key producing countries and technological alternatives such as solid-state batteries, which could partially replace lithium in the future.
Conclusion: Anyone investing in shares of lithium-producing companies such as Albemarle, SQM or Rio Tinto is betting on a structural megatrend - but should be patient and willing to take risks.