THE GLOBAL LITHIUM MARKET AND THE GROWTH OF ELECTRIC VEHICLES

Abstract

This study examines the relationship between the global lithium market and the rapid expansion of electric vehicles (EVs) during the period 2000–2023.The increasing global transition toward sustainable transportation and low-carbon energy systems has significantly accelerated demand for lithium, which remains a critical raw material for lithium-ion battery technologies.Using a quantitative econometric approach based on data obtained from the International Energy Agency (IEA), BloombergNEF, the United States Geological Survey (USGS), and the World Bank, the study analyzes how electric vehicle sales, GDP per capita, and government policy incentives influence global lithium demand. The empirical findings indicate that EV growth is the primary driver of lithium market expansion, while economic development and policy support also positively contribute to lithium consumption.The results further reveal that developed economies dominate advanced stages of battery manufacturing and technological innovation, whereas many developing economies remain concentrated in raw material extraction. In addition, the study highlights important sustainability challenges associated with lithium mining, including environmental pressures and supply chain concentration risks. The findings suggest that stronger international cooperation, industrial diversification, technological upgrading, and environmentally sustainable mining practices are necessary to support the long-term stability of the global lithium market. Overall, the study provides important insights into the interaction between electric vehicle expansion, strategic mineral demand, and the global clean energy transition, with significant implications for policymakers, researchers, and developing economies participating in lithium supply chains.