The U.S. electric vehicle (EV) sector is racing ahead in 2025, with sales climbing sharply this year. Yet a critical hurdle has emerged: lithium, the essential metal for high-performance batteries, is in short supply.
Recently, a tech startup in Texas began producing battery-grade lithium carbonate from oilfield wastewater using a novel extraction process. It’s a promising innovation, but even at full tilt the facility can supply batteries for only about 20,000 EVs annually—far below America’s soaring demand.
Meanwhile, the Chinese mainland controls more than half of global lithium processing capacity and leads in battery manufacturing. That dominance gives it a strategic edge on pricing and scale, widening the gap with U.S. producers scrambling to secure reliable supplies.
Industry analysts warn that domestic mining ventures in Nevada, North Carolina and Arkansas, together with recycling programs, won’t ramp up fast enough to meet forecasts. Global lithium demand is projected to triple by 2030, driven by automakers and renewable-energy storage projects.
To strengthen supply chains, U.S. stakeholders are exploring:
- Incentives for lithium mining and refining on U.S. soil
- Grants to expand recycling and direct lithium extraction from brine
- Strategic partnerships with producers in Australia, Chile and Canada
For entrepreneurs and investors, the bottleneck highlights opportunities in clean-tech innovation and supply-chain resilience. For consumers, it underscores that the green transition hinges on complex global cooperation. As the U.S. pushes toward electrified mobility, securing lithium will be as vital as designing the next breakthrough EV.
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U.S. EV sector runs into major obstacle over lithium supplies
cgtn.com
