Market analysts are increasingly bullish on lithium demand in large-scale energy storage systems, as opposed to electric vehicles (EV), Bloomberg reported.
Researchers note that demand from these storage systems may rise at a faster pace than EV growth in 2026, potentially helping to tip the global market into a deficit next year.
EVs are by far the biggest consumer of lithium used for energy storage. With their market adoption growing at a slower rate than expected, lithium prices have tanked over the past three years.
Battery storage, meanwhile, is becoming a significant demand driver for lithium. On the one hand, the cost of building utility-scale batteries has declined in recent years, while the construction of new large-scale data centers is providing support, given their need for stable electrical supply to smooth out peaks in power demand. For instance, China is on track to exceed its new target of 180 GW of cumulative energy storage capacity by 2027.
UBS analysts said that demand for lithium from the energy storage sector could rise 55% next year as compared to a growth of just 19% from EVs.
Theodor Lisovoy, Managing Editor, Rough&Polished
