Lithium is a soft, silvery-white alkali metal with the atomic number 3. It is the lightest solid element and the lightest metal on the periodic table. Lithium does not occur freely in nature due to its high reactivity; instead, it is found in minerals such as spodumene, lepidolite, and petalite, as well as dissolved in brine deposits beneath salt flats. The element was first identified in 1817 by Swedish chemist Johan August Arfvedson and derives its name from the Greek word lithos, meaning stone [1].
Lithium has become one of the most strategically significant minerals of the 21st century. Global end uses are dominated by batteries at approximately 87% of total consumption, followed by ceramics and glass at 5%, lubricating greases at 2%, and air treatment, medical, and other applications making up the remainder [2]. Global lithium consumption in 2024 was estimated at 220,000 metric tons, a 29% increase over 2023 [2].
Lithium is used across a broad range of industries, but its dominant application is in rechargeable lithium-ion batteries. These batteries power electric vehicles (EVs), portable electronic devices, electric tools, and grid-scale energy storage systems. The growth of EV adoption worldwide has been the primary driver of lithium demand over the past decade.
Beyond batteries, lithium compounds serve important industrial functions. Lithium hydroxide and lithium carbonate are used in ceramics and glass manufacturing, where they lower melting temperatures and improve thermal resistance. Lithium stearate is a key ingredient in high-performance lubricating greases used in automotive and industrial applications. Lithium chloride is used in air conditioning and industrial drying systems due to its hygroscopic properties. Lithium compounds are also used in pharmaceutical applications, most notably lithium carbonate as a mood-stabilizing medication for bipolar disorder [1].
In defense and aerospace applications, lithium is used in lightweight aluminum-lithium alloys for aircraft fuselages and in certain battery systems for military equipment. Lithium-6 isotopes have applications in nuclear energy research [1].
Lithium is extracted from three primary deposit types, each with distinct geological characteristics, processing requirements, and cost profiles.
Continental brine deposits are found beneath salt flats (salars) in arid regions, primarily in South America's "Lithium Triangle" of Chile, Argentina, and Bolivia. Lithium-rich brine is pumped to the surface and concentrated through solar evaporation over 12 to 18 months before chemical processing yields lithium carbonate or lithium hydroxide. Brine operations generally have lower extraction costs but longer development timelines and are subject to water availability constraints [1].
Hard rock lithium deposits occur in lithium-cesium-tantalum (LCT) pegmatites, which are coarse-grained igneous intrusions. The primary lithium-bearing mineral in these deposits is spodumene, a pyroxene mineral that can contain up to approximately 8% lithium oxide (Li2O). Pegmatite deposits are mined using conventional open-pit or underground methods, and the spodumene concentrate is processed through roasting and acid leaching to produce lithium chemicals. Australia is the largest producer of hard rock lithium, and pegmatite deposits also occur in Canada, Brazil, Zimbabwe, Portugal, and the United States [1].
The Black Hills of South Dakota have a documented history of lithium-bearing pegmatites. The Volney Project, operated by Lion Rock Resources (TSXV: ROAR), confirmed spodumene-bearing LCT pegmatites during Phase 1 drilling, with surface samples returning average grades of 4.4% Li2O [3]. For more on Lion Rock's lithium exploration, see Lithium at the Volney Project.
Lithium clay deposits, primarily composed of the mineral hectorite, are found in volcanic sedimentary formations. These deposits are being explored in Nevada and other locations but have not yet reached commercial-scale production. Processing requires acid leaching or other chemical extraction methods [1].
The United States had one commercial-scale lithium brine operation in Nevada as of 2024, and production figures were withheld to protect proprietary data. US net import reliance for lithium was estimated at greater than 50% of apparent consumption. The primary import sources from 2020 to 2023 were Chile (50%) and Argentina (47%) [2].
Despite holding an estimated 19 million metric tons of measured and indicated lithium resources from continental brines, claystone, geothermal brines, and pegmatites, the United States produces a fraction of global supply. Global lithium production in 2024 was approximately 240,000 metric tons, led by Australia, Chile, China, and Zimbabwe [2].
The US Department of Energy announced $3 billion in funding across 25 projects in 2024 to support domestic lithium extraction, processing, and battery manufacturing under the Bipartisan Infrastructure Law [2]. In February 2026, the USGS released its Mineral Commodity Summaries 2026, noting that world lithium production rose 31% in 2025 and that the Trump Administration announced Project Vault, a critical minerals stockpile focused on rare earths, lithium, nickel, and similar metals [4].
Lithium has been included on every edition of the US Critical Minerals List since its inception. The 2025 Final List of Critical Minerals, published by the Department of the Interior through the USGS, includes 60 mineral commodities designated as critical to national security and economic stability [5]. Lithium qualifies due to its essential role in battery technology for both civilian and defense applications, combined with the concentration of production and processing capacity in a small number of countries.
For additional context on the full 2025 list, see Lion Rock's Knowledge Centre article: 2025 Critical Minerals List: All 60 Minerals Explained.
To understand the broader critical minerals landscape in South Dakota's mining district, see: Black Hills Critical Minerals: America's Overlooked Corridor.
What is the difference between lithium carbonate and lithium hydroxide?
Lithium carbonate (Li2CO3) and lithium hydroxide (LiOH) are the two primary lithium chemicals used in battery manufacturing. Lithium hydroxide is increasingly preferred for high-nickel cathode chemistries used in EV batteries because it enables higher energy density and longer battery life. Lithium carbonate remains widely used in lithium iron phosphate (LFP) batteries and in ceramics and glass applications [1].
Is lithium a rare earth element?
No. Lithium is an alkali metal, not a rare earth element. Rare earth elements are a group of 17 metallic elements (the 15 lanthanides plus scandium and yttrium) with distinct chemical properties. Lithium, rare earths, and other minerals such as tantalum and tin are all classified as critical minerals by the US government, but they belong to different chemical groups.
How long do lithium reserves last?
Global lithium reserves were estimated at 30 million metric tons as of January 2025, with an additional 115 million metric tons of measured and indicated resources identified worldwide. At current production rates, reserves alone represent over 100 years of supply, though demand growth from EV adoption will increase consumption significantly [2].
[1] U.S. Geological Survey, "Lithium," Mineral Commodity Summaries, January 2025. https://pubs.usgs.gov/periodicals/mcs2025/mcs2025-lithium.pdf?v=060205
[2] U.S. Geological Survey, "Mineral Commodity Summaries 2025," 2025. https://doi.org/10.3133/mcs2025
[3] Lion Rock Resources Inc., news releases, 2025-2026. https://www.lionrockresources.com/news/
[4] U.S. Geological Survey, "Mineral Commodity Summaries 2026," February 2026. https://doi.org/10.3133/mcs2026
[5] U.S. Department of the Interior, "Final 2025 List of Critical Minerals," Federal Register, November 7, 2025.
Disclaimer
This article is published by Lion Rock Resources Inc. (TSXV: ROAR, OTCQB: LRRIF, FSE: KGB) for educational purposes only. It does not constitute investment advice, a recommendation to purchase securities, or an offer of securities for sale. All data is sourced from publicly available government and institutional publications. There is no assurance that any government program, incentive, or policy will apply to or benefit the Company or the Volney Project.
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