Global lithium consumption in 2026 is poised to remain largely driven by the rise in electric vehicle (EV) sales – mainly in China, according to the Department of Industry, Science and Resources (DISR) December 2025 Resources and Energy Quarterly.
In Australia, the Electric Vehicle Council recorded a 38% increase to EV sales in 2025 with more than 157,000 vehicles sold across the year.
December alone reached a new record with 16.7% of new vehicles sold being electric.
Electric Vehicle Council CEO Julie Delvecchio says the jump in EV sales shows the technology to be an “established and growing part of Australia’s car market”.
“Battery electric vehicle sales passed 100,000 in a single year for the first time, and EVs now make up more than 13% of all new car sales,” Delvecchio says.
“That is a profound shift in a short period of time.
“The results show what can happen when growing consumer confidence is backed by government policies that are reducing carbon emissions while saving drivers money.”
As reported by Mining.com.au, PwC predicts that almost every second car sold will be a battery electric vehicle (BEV), leading to a demand increase for global batteries of 35% by 2030 through its Strategy&.
Demand for EVs is one of the many effects of a greater, global shift to electrification, as outlined in the Paris Agreement by leaders at the United Nations Climate Conference in 2015.
The Paris Agreement is a global initiative to combat climate change by limiting human input on global warming. Each country involved in the United Nations were required to set increasing national climate targets and transition towards net zero emissions.
BESS market to be in
While EVs will continue to drive the global demand for lithium, battery energy storage systems (BESS) are also likely to drive the market, according to DISR’s final quarterly forecast for 2025.
Mining.com.au reports China to have more than 101.3 gigawatts of BESS installed across thousands of projects nationwide. These projects are primarily lithium-ion based, offering a large contrast to the US’ 30 gigawatts of installed BESS capacity as of March 2025.
In 2024, some 95% of Australian lithium ores and concentrates were shipped to China, highlighting the significance of Chinese lithium demand.
DISR states that Australia is likely to stay a top supplier of lithium in 2027 and beyond, with 9% of global lithium hydroxide produced in the country by 2027.
Export values have increased by $700 million to a total of $6.3 billion in the 2025-26 period, and is projected to add another $900 million to a total of $6.8 billion in 2026-27.
Trading Economics reports the price of lithium to sit at ¥140,000 per tonne as of 9 January 2026, representing an 51.02% increase for the past month.
Companies such as Patagonia Lithium (ASX:PL3) are focused on jumping in on the global lithium demand. Patagonia is looking to become a producer within the next two years, as reported by Mining.com.au.
The company signed a non-binding strategic partnership agreement with Ameerex Corporation (OTCID:HIRU) to support its Formentera Lithium Project in Argentina and niobium and rare earths projects in Brazil last week.
Write to Maddison Elliott at Mining.com.au
Images: iStock & Patagonia Lithium
