Lithium Nexus Identifies UAE as a Rising Force in the Global Lithium Economy

ABU DHABI, UAE - Aug. 29, 2025 - PRLog -- Lithium has quietly become one of the world's most strategic resources, powering smartphones, electric vehicles (EVs), and renewable energy storage systems. The newly published Lithium Rapid Growth Report 2025 by Lithium.ae Team highlights the global surge in demand, the challenges of price volatility, and the UAE's growing role in the clean energy transition.

Global growth with volatility
In 2023, global lithium production reached 204,000 tons (Li content), with consumption at 170,000 tons. By 2024, production had grown to 240,000 tons and consumption surged to 220,000 tons — a remarkable 29% increase in demand within a single year.
Yet, despite this strong growth, average battery-grade lithium carbonate prices dropped from $41,300 per ton to $14,000 per ton, a 66% decline. This paradox of strong demand and falling prices underscores both the opportunities and risks in the global lithium market.

EVs driving demand
The single biggest driver of lithium demand remains the electric vehicle industry. Global EV sales rose from 14 million in 2023 to 17 million in 2024 — a 21% increase. Crucially, about 94% of these vehicles use lithium-ion batteries, with LFP batteries now accounting for nearly one-third of the global EV battery market. According to the International Energy Agency, 85% of all lithium demand now comes from batteries.

The UAE's leadership in clean energy
While the UAE is not a lithium producer, it has emerged as a leader in adopting and financing clean energy solutions. Under its Energy Strategy 2050, the UAE has pledged between AED 150–200 billion in clean energy investments, from large-scale solar farms to advanced grid storage.
Masdar, the country's flagship renewable energy company, has already reached 51 GW of installed clean energy capacity, more than half of its 100 GW target for 2030. This positions the UAE as a regional hub for clean energy innovation and a critical player in the global transition.

Opportunities and risks ahead
Lithium's future will be shaped by demand from EVs, renewable energy storage, and emerging technologies. While oversupply cycles and price volatility present challenges, countries that integrate lithium into their broader energy strategies stand to benefit. For the UAE, this means opportunities in technology partnerships, R&D, and downstream investment rather than raw extraction.

About Lithium Rapid Growth Report 2025
The full report, including charts and data tables on EV sales, global production, price trends, and Masdar's progress, is available at  http://www.Lithium.ae