IDTechEx: Examining Lithium Extraction for EV Growth
As demand for lithium surges, various extraction methods are being explored and refined to support the growing EV market.
IDTechEx’s reports, Direct Lithium Extraction 2025-2035: Technologies, Players, Markets and Forecasts and Li-ion Battery Market 2025-2035: Technologies, Players, Applications, Outlooks and Forecasts, provide in-depth analyses of the latest advancements in lithium extraction and the leading applications driving global demand.
Advancements in direct lithium extraction
IDTechEx identifies brine-based direct lithium extraction (DLE) as the fastest method available, capable of yielding lithium in hours or days.
In contrast, traditional methods such as brine evaporation can take up to two years, while hard rock mining requires weeks to months.
Extraction from sediment-hosted deposits remains unproven but is expected to take several weeks or months, making it significantly slower than brine DLE.
Challenges of traditional evaporation ponds
Historically, DLE has relied on evaporation or concentration ponds, which present numerous challenges.
- Space and location constraints – Large land areas are required, limiting where extraction sites can be established.
- Weather dependence – Solar evaporation is influenced by climate conditions, making the process unpredictable.
- Long processing times – The duration required for lithium extraction through evaporation delays supply chain efficiency.
As demand for lithium grows, these limitations pose significant concerns, driving the need for more efficient extraction techniques.
The evolution of pond-free DLE
A new generation of DLE technologies is emerging, eliminating the need for evaporation ponds and enabling more efficient lithium extraction. International Battery Metals and Eramet are pioneering commercial operations that integrate water recovery processes like forced evaporation and reverse osmosis.
The advancements allow for:
- Water recycling: Instead of losing water through solar evaporation, modern DLE technologies collect and reuse water, reducing overall consumption.
- Selective lithium extraction: DLE technologies offer greater precision in lithium recovery, even from brine sources with high impurity levels, such as geothermal brines (120-300°C).
- Increased efficiency: These methods provide faster lithium yield than traditional pond-based extraction.
IDTechEx delves deeper into these innovations in its Direct Lithium Extraction report, comparing them to conventional methods.
Lithium market growth and applications
The rapid expansion of lithium extraction technologies is driven by the increasing demand for lithium-ion (Li-ion) batteries. According to IDTechEx, Li-ion battery demand is expected to grow at a compound annual growth rate (CAGR) of 15% from 2024 to 2035.
The primary driver of the growth is the rising demand for battery-electric vehicles (BEVs).
- Slow growth in key markets – Demand in Europe and the US has slowed due to economic uncertainties and policy shifts.
- Regulatory and policy uncertainty – The future of incentives, such as the US Inflation Reduction Act (IRA), remains uncertain, impacting investment in domestic battery production.
- Trade tariffs and supply chain risks – Potential tariffs and supply chain disruptions could influence lithium availability and cost.
However, long-term trends suggest continued demand for lithium, particularly for stationary battery storage systems, which maintained strong growth through 2024.
The role of new lithium extraction technologies
As lithium demand rises, new extraction technologies present a potential solution for increasing supply at competitive prices.
Additionally, they could support more localised lithium supply chains, particularly in regions with limited conventional lithium resources such as the US and Europe.
By adopting advanced extraction techniques, these regions may reduce their reliance on lithium imports and establish greater self-sufficiency in raw material supply.
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