But lithium is worthy of a close look right now.

The metal is crucial for lithium-ion batteries used in phones and laptops, electric vehicles, and large-scale energy storage arrays on the grid. Prices have been on quite the roller coaster over the last few years, and they’re ticking up again after a low period. What happens next could have big implications for mining and battery technology.

Before we look ahead, let’s take a quick trip down memory lane. In 2020, global EV sales started to really take off, driving up demand for the lithium used in their batteries. Because of that growing demand and a limited supply, prices shot up dramatically, with lithium carbonate going from under $10 per kilogram to a high of roughly $70 per kilogram in just two years.

And the tech world took notice. During those high points, there was a ton of interest in developing alternative batteries that didn’t rely on lithium. I was writing about sodium-based batteries, iron-air batteries, and even experimental ones that were made with plastic.

Researchers and startups were also hunting for alternative ways to get lithium, including battery recycling and processing methods like direct lithium extraction (more on this in a moment).

But soon, prices crashed back down to earth. We saw lower-than-expected demand for EVs in the US, and developers ramped up mining and processing to meet demand. Through late 2024 and 2025, lithium carbonate was back around $10 a kilogram again. Avoiding lithium or finding new ways to get it suddenly looked a lot less crucial.

That brings us to today: lithium prices are ticking up again. So far, it’s nowhere close to the dramatic rise we saw a few years ago, but analysts are watching closely. Strong EV growth in China is playing a major role—EVs still make up about 75% of battery demand today. But growth in stationary storage, batteries for the grid, is also contributing to rising demand for lithium in both China and the US.

Higher prices could create new opportunities. The possibilities include alternative battery chemistries, specifically sodium-ion batteries, says Evelina Stoikou, head of battery technologies and supply chains at BloombergNEF. (I’ll note here that we recently named sodium-ion batteries to our 2026 list of 10 Breakthrough Technologies.)

It’s not just batteries, though. Another industry that could see big changes from a lithium price swing: extraction.

Today, most lithium is mined from rocks, largely in Australia, before being shipped to China for processing. There’s a growing effort to process the mineral in other places, though, as countries try to create their own lithium supply chains. Tesla recently confirmed that it’s started production at its lithium refinery in Texas, which broke ground in 2023. We could see more investment in processing plants outside China if prices continue to climb.

This could also be a key year for direct lithium extraction, as Katie Brigham wrote in a recent story for Heatmap. That technology uses chemical or electrochemical processes to extract lithium from brine (salty water that’s usually sourced from salt lakes or underground reservoirs), quickly and cheaply. Companies including Lilac Solutions, Standard Lithium, and Rio Tinto are all making plans or starting construction on commercial facilities this year in the US and Argentina. 

If there’s anything I’ve learned about following batteries and minerals over the past few years, it’s that predicting the future is impossible. But if you’re looking for tea leaves to read, lithium prices deserve a look. 

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