Commodities
May 28, 2026
1 min
Commodities
Key takeaways
- Batteries dominate at 88%: USGS Mineral Commodity Summaries 2026 estimates batteries at 88% of global lithium end-use, with every other category at 4% or less.
- EVs and storage are the engine: The IEA reports that EVs and battery storage together make up around 90% of today's lithium-ion battery market, with total Li-ion deployment up more than sixfold between 2020 and 2025.
- Legacy and medical uses are now slivers: Ceramics and glass (4%), lubricating greases (2%), air treatment (1%), casting flux powders (1%) and medical use (1%) together account for less than one-eighth of demand, per USGS.
In February 2026, the U.S. Geological Survey put a fresh number on a transformation that has been building for a decade: batteries now account for 88% of global lithium end-use, up from 87% a year earlier. The metal that once quietly toughened ceramics and thickened industrial greases has been almost entirely repurposed by the battery economy. As covered in our reporting on the shift from surplus to deficit, the supply side of this story is tightening. The demand side is now strikingly simple. According to the same USGS data, global lithium consumption rose 20% in 2025 to roughly 263,000 tons, and the overwhelming share of that growth points in one direction: cells.
The Battery Era
The headline figure is the story. USGS attributes the 88% battery share to the growth of rechargeable lithium batteries across electric vehicles, energy grid storage, portable electronics and electric tools. The scale of that growth is documented by the IEA, which finds that EVs and battery storage now represent roughly 90% of the lithium-ion battery market, and that total Li-ion deployment across all applications rose more than sixfold from 2020 to 2025.
Demand is following. The IEA's Global Critical Minerals Outlook records that lithium demand grew by nearly 30% in 2024, and that for battery metals the energy sector accounted for 85% of total demand growth. Chemistry is shifting underneath that demand too: the IEA notes lithium iron phosphate (LFP) batteries now cover close to half the electric-car market, up from under 10% in 2020.
The Legacy Uses That Remain
Before the battery boom, lithium was a specialist's material, and those uses have not disappeared so much as been overshadowed. USGS places ceramics and glass at 4%, where lithium minerals are added directly as mineral concentrates to improve heat resistance and reduce thermal expansion. Lubricating greases follow at 2%, valued for performance across wide temperature ranges. Air treatment sits at 1%, where lithium compounds absorb carbon dioxide and control humidity in enclosed environments, and continuous casting mold flux powders account for another 1% in steelmaking. USGS also notes that substitutes such as calcium and aluminum soaps in greases, or sodic and potassic fluxes in glass and ceramics, remain available for several of these applications.
The 1% That Reshaped Psychiatry
A single percent of global lithium supply goes to medicine, but its impact is disproportionate to its volume. The NHS prescribing guidance describes lithium as the most effective long-term treatment for bipolar disorder, reducing the frequency, duration and severity of relapses as well as suicidal acts, suicide and overall mortality. The Mayo Clinic records its use in treating mania and reducing the frequency and severity of manic episodes. It is a reminder that lithium's value was established in clinical settings long before it became a battery input.
Final Synthesis: A Metal With One Master
The diversification that once defined lithium has effectively collapsed into a single dominant use. With batteries at 88% and climbing, the metal's fortunes are now tied almost entirely to electrification. The IEA projects that under its Stated Policies Scenario, lithium demand grows fivefold from today to 2040. Set against the tightening supply picture from our earlier analysis, the concentration of demand into one application is what makes lithium so strategically sensitive. When 88% of a commodity serves one purpose, the health of that single sector is, increasingly, the health of the entire market.
MiningVisuals Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct your own research.
Sources:
- U.S. Geological Survey — Mineral Commodity Summaries 2026, Lithium
- U.S. Geological Survey — Lithium overview
- IEA — Global EV Outlook 2026, Electric vehicle batteries
- IEA — Global Critical Minerals Outlook 2025, Executive summary
- IEA — Global Critical Minerals Outlook 2025, Overview of outlook for key minerals
- NHS / NICE-aligned Lithium Prescribing Guideline
- Mayo Clinic — Lithium (oral route)
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