Electric vehicles and grid batteries are now the main source of lithium demand: the USGS estimates batteries took 88% of global lithium use in 2025. This article summarises the latest IEA figures and what they mean for lithium.
Electric car sales: the IEA numbers
| Metric | Value | Source |
|---|---|---|
| Global electric car sales, 2025 | More than 20 million (+20% y/y) | IEA Global EV Outlook 2026 |
| Share of new cars sold, 2025 | About 25% (one in four) | IEA |
| Europe, 2025 | 4.2 million (+30%), 28% of new cars | IEA |
| Battery-electric share of EV sales, 2025 | 65% | IEA |
| Chinese manufacturers’ share of EV sales | About 60% | IEA |
| Expected 2026 sales | About 23 million (28% share) | IEA |
How much lithium is in an EV?
It depends on battery size and chemistry. Industry estimates commonly put lithium intensity at roughly 0.5–0.8 kg of lithium carbonate equivalent per kWh, so a 60 kWh pack contains on the order of 30–50 kg LCE. These are approximations; actual content varies by cathode type and manufacturer.
LFP and the carbonate–hydroxide shift
Lithium iron phosphate (LFP) batteries, which use lithium carbonate, now dominate in China and in grid storage, while nickel-rich chemistries using lithium hydroxide remain common in longer-range Western EVs. That shift is one reason hydroxide no longer commands a premium over carbonate. See lithium hydroxide price.
Grid storage: the fast-growing second engine
Battery energy storage systems almost entirely use LFP cells. BloombergNEF found stationary storage packs averaged just US$70/kWh in 2025, 45% below 2024, which is accelerating deployment and lithium demand. The USGS cites battery storage growth as a reason prices rose in the second half of 2025.
What it means for lithium
- Demand growth is now driven by both EVs and storage, making it less dependent on any single car market.
- Cheaper batteries expand the market but put pressure on the whole supply chain to cut costs.
- Sodium-ion batteries are an emerging substitute in some low-cost and storage segments.
Rewritten in October 2026 with IEA, USGS and BNEF data, replacing earlier unsourced estimates.