Lithium: Short-Term Opportunities for a Long-Term Trend | Sprott

The energy transition is in full swing, and record investment1 is flowing into this emerging sector globally. While some miners of minerals critical to the clean energy transition, particularly those focused on copper, have seen considerable gains so far in , lithium miners have significantly underperformed. However, the tides may be set to turn. What does this mean for the energy transition, and are there opportunities for investors?

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Lithium in : Facing Challenges

Lithium is a critical material essential to lithium-ion batteries, the dominant battery type used in electric vehicles (EVs). As EV proliferation intensifies, a lithium supply deficit may likely last through the upcoming decades.

Figure 1. Lithium Supply Unlikely to Keep Up with Demand2

Source: “Global Critical Minerals Outlook ,” International Energy Agency (IEA), May . Demand data shown for Net Zero Emissions Scenario. Supply is from existing and announced projects.

According to Benchmark Mineral Intelligence (BMI), the lithium supply shortage is forecasted to begin as soon as . There are currently only 101 lithium mines in the world, and even as more mines and exploration projects come online, the added supply may likely not be able to keep up with demand. China alone is expected to drive a 20% yearly increase over the next decade.3 This is especially evident given that the current unsustainably low lithium prices have led to project curtailments and driven some miners to reduce capital expenditures and investments in future supply. We believe that the lithium price may have bottomed, and higher lithium prices may be necessary to incentivize the required future production.

Well-Supported Value Chain

The value of lithium is not limited to the mineral itself. Opportunities exist along the entire lithium supply chain, including exploration, mining, processing and compound manufacturing. Lithium miners and companies involved in the processing and refining of raw lithium may likely be poised to benefit as the demand for lithium grows. Recycling will also come into play as batteries begin to reach their end-of-life and recycled elements are reused for new batteries. 

The lithium battery industry is projected to create $400 billion in annual revenue opportunities worldwide.4 The lithium production component of the chain has recorded margins as high as 65%, potentially making it a highly profitable sector.

Lithium miners, in particular, may be well positioned as they can give leverage to rebounding lithium prices. In contrast, non-vertically integrated lithium processing/refining companies may see their expenses rise.

Figure 2. McKinsey Model Estimates that Lithium-Ion Battery Value Chain May Provide Revenue Opportunities of >$400 Billion by

Source: McKinsey & Company. Battery Insights, .

Unprecedented Investment from Mining Companies and Auto Manufacturers

The growing demand for lithium is drawing unprecedented investment from the public and private sectors. In pursuit of future growth, specialized lithium miners are investing in their businesses and have a reinvestment ratio5 of about 60%, compared to 25% for diversified miners.6

Automakers are concerned about the availability of lithium, a mineral essential to their ability to manufacture EVs. In a move that harkens back to the days of Ford setting up rubber plantations to guarantee materials for tires, automakers are investing directly in the lithium mining space. As a result, Tesla, VW Group, General Motors, Stellantis, BMW and Mercedes-Benz are creating long-term offtake agreements with producers to buy lithium that will be mined in the future,6 while General Motors and Stellantis are investing directly in the equities of lithium mining companies.

Figure 3. Demand for Lithium Is Expected to Grow More Than Sevenfold between and

Source: BloombergNEF Transition Metals Outlook .

Realizing lithium’s role in the energy transition, the U.S., Canada and the European Union have added lithium to their critical minerals lists. This designation makes it easier for companies to apply for grants and subsidies that support the lithium and EV industries.

Is There a Short-Term Opportunity?

There may be a short-term opportunity at hand. Despite the long-term investment outlook for lithium miners, many producers of this critical mineral have seen their stock prices drop considerably in . Given the scale of this descent juxtaposed with the stark demand-supply imbalance in the upcoming years, lithium miners may be well positioned going forward. This means that investors who want to add an allocation to lithium miners to their portfolio may have an opportunity to do so at prices significantly lower than .

Footnotes

The lithium race is on - and the oil and gas industry is sitting on untapped potential.

Global lithium demand is expected to grow 3.5x by , driven by the rapid rise of electric vehicles and renewable energy storage. But traditional mining can't keep up. It's slow, expensive, and environmentally damaging, creating bottlenecks and intensifying the global push for secure, local, and sustainable supply.

This is where opportunity meets innovation.

Lithium Harvest turns produced water - a costly byproduct of oil and gas operations - into high-value, battery-grade lithium. Our patented process is faster to deploy, more sustainable, and far more cost-effective than conventional extraction methods.

It's not just a new way to extract lithium - it's a path to profit. Oil and gas companies now have a unique chance to diversify operations, boost ESG performance, and gain a first-mover edge in one of the world's fastest-growing markets.

Table of contents:

• Introduction to the Lithium Market
• The Booming Lithium Market
• The World Needs More Sustainable Lithium - Are You Ready to Lead?
• Geographical Distribution and Sources
• Key Market Drivers of the Lithium Industry
• Governments and Regulations
• Technological Benchmark
• Introduction to Lithium Harvest
• Lithium Harvest's Competitive Advantage
• Strategic Fit and Market Opportunity for Oil and Midstream Companies
• Partner with Lithium Harvest for Sustainable Lithium Extraction

The global lithium market is exploding - and it’s only just getting started.

Electric vehicles and renewable energy storage are fueling a massive surge in demand. By , the world will need more than 3.5 times the lithium it used in . But there’s a problem: traditional mining can’t keep up. It’s too slow, too expensive, and far too damaging to the environment.

That’s why the market isn’t just calling for more lithium - it’s demanding a better way to get it.

Sustainability isn’t a nice-to-have anymore - it’s a deal-breaker. Investors, regulators, and buyers are putting pressure on the industry to clean up its act. Lithium extraction with lower emissions, lower water use, and a smaller footprint is no longer a niche. It’s the future.

For oil and gas companies, this presents a rare opportunity.

By partnering with Lithium Harvest, you can turn an environmentally costly challenge - produced water - into a new revenue stream. Our patented solution transforms oilfield wastewater into high-purity lithium using a fast, sustainable, and cost-effective process. You can diversify your business, boost ESG performance, and tap into a booming market - without changing your core operations.

The lithium market is shifting fast. And the companies that move first will win big. Let’s show you how.

Global Demand Is Soaring

You already know the world is racing toward electrification, but the speed is staggering.

Lithium is at the center of this shift. It powers EV batteries, backs up renewable energy grids, and supports the entire clean energy infrastructure. From to , global lithium demand is expected to grow 3.5x - and that’s a conservative estimate. Governments, automakers, and energy providers are all driving this surge as they push to meet climate targets and decarbonize operations.

For companies like yours, this is more than a market trend - it’s a once-in-a-generation opportunity to tap into a booming sector by turning existing resources into high-value lithium.

The Supply Struggle

The problem? Supply can’t keep up.

Traditional lithium extraction is slow, expensive, and harmful to the environment. Hard rock mining and evaporation ponds take years to permit and build, and use massive amounts of water and land. Worse, most of the global supply is concentrated in just a handful of countries, creating serious risks for downstream buyers.

By - or sooner - demand is expected to outpace supply, threatening to stall the green energy transition.

That’s where your operations come in.

You can help close the supply gap using something you already have: produced water. Our patented process extracts lithium from this overlooked resource, delivering a faster, cleaner, and more cost-effective way to enter the market while aligning with sustainability goals.

It’s a strategic way to grow - and lead - in the new energy economy.

Global demand for lithium is exploding, driven by electric vehicles, energy storage, and the green transition. But traditional mining can't keep up - and worse, it’s under fire for water depletion, high emissions, and land disruption. As regulations tighten and customers demand cleaner materials, the pressure is mounting.

TAIYE supply professional and honest service.

Here’s the opportunity: Oil and gas companies are sitting on a hidden lithium supply - produced water. What’s long been treated as waste can now be a valuable source of battery-grade lithium. And Lithium Harvest is making it possible.

Why This Matters Now

Sustainable lithium isn’t just a nice-to-have - it’s a market requirement.

EV makers, battery producers, and energy giants are prioritizing ESG-compliant materials. That means responsibly sourced lithium is becoming a competitive edge - and a requirement in supplier contracts.

By extracting lithium from produced water, you not only meet this demand but also turn a waste stream into a profit center. And you do it without the footprint, timeline, or backlash of conventional mining.

A Strategic Advantage for Oil and Gas

This isn’t just good for the planet - it’s smart business.

• Lithium demand is expected to grow 3.5x by .
• A supply shortage of up to 10 million tons of LCE is projected by in high-demand scenarios.
• Produced water is already on-site - you just need the right solution to extract value from it.

With Lithium Harvest’s technology, you can generate new revenue, boost ESG scores, and strengthen your role in the energy future - all while maintaining your core operations.

Let’s Lead the Transition – Together

This is your moment to surge ahead. As the world scrambles to secure lithium, those who move first will shape the market.

Partner with Lithium Harvest to turn your produced water into a valuable asset - and secure your company’s place at the forefront of sustainable energy.

Let’s talk about how we can help you lead the next era of energy.

Lithium's Global Bottleneck - and the U.S. Opportunity

90% of the world’s lithium production is concentrated in just four countries. Australia, Chile, China, and Argentina dominate supply, with China refining a massive share of the world’s battery-grade lithium.

That means most of the lithium powering EVs, energy storage systems, and grid resilience is processed far from where it's needed, creating critical vulnerabilities in the global supply chain. For the U.S. and other countries, this is a major energy security risk.

The U.S. Is Falling Behind - But Oil & Gas Can Change That

Today, the U.S. accounts for less than 1% of global lithium production. Despite vast untapped potential, most domestic lithium remains in the ground or overlooked sources like oilfield wastewater.

At the same time, demand is surging and policy is shifting. The Inflation Reduction Act and other federal initiatives have made domestic mineral production a strategic imperative, especially for lithium.

Here’s where it gets interesting:

66% of global lithium still comes from ore mining. Only 10% comes from Direct Lithium Extraction (DLE) – the part with the most room for growth.

Why This Is a Strategic Moment for U.S. Oil and Midstream Companies

Oil and gas companies already manage massive volumes of lithium-rich water. With the right partner, that water can be transformed into a domestic supply of battery-grade lithium, right at the source.

This means:

• Creating new revenue streams without new land use or drilling
• Supporting U.S. energy independence by reducing reliance on foreign lithium
• Aligning with policy priorities and stakeholder expectations around ESG and sustainability

You’re already producing the resource - now it’s time to extract the value. Partnering with Lithium Harvest puts you at the center of the U.S. lithium strategy while future-proofing your operations.

Let’s talk about how to turn your produced water into a strategic asset.

Policy is no longer a backdrop - it's a driving force.

Governments worldwide are reshaping the future of energy with bold regulations and aggressive incentives. From tax credits for EVs to billions in funding for domestic lithium production, the message is clear: clean energy is a national priority.

These regulatory tailwinds create a powerful opportunity for companies in oil, gas, and midstream. With the right partnerships and technology, you can align with policy shifts, access incentives, and secure a profitable role in the clean energy supply chain.

Regulations aren't a hurdle - they're your green light to act.

The race for lithium is heating up, and only the most efficient, sustainable solutions will win.

At Lithium Harvest, we’re not just keeping pace - we’re setting the benchmark. While traditional mining struggles with slow timelines and high environmental costs, our patented solution delivers lithium faster, cleaner, and more cost-effectively.

This is more than innovation - it’s a smarter path to meeting rising lithium demand and securing your place in the future energy economy.

You already have the infrastructure, so unlock a whole new revenue stream.

As lithium demand skyrockets, oil and midstream companies are perfectly positioned to enter the critical minerals market. With produced water already flowing through your operations, you're sitting on an untapped resource that can fuel the energy transition.

By partnering with Lithium Harvest, you can diversify your business, drive profitability, and reduce reliance on volatile foreign supply chains. It's a strategic, low-risk entry into a booming market that aligns with national energy security goals and ESG expectations.

At Lithium Harvest, we help oil and midstream companies turn produced water into high-purity lithium using proven, patented technology. With minimal disruption and no need for major infrastructure changes, you can unlock a scalable, low-risk path into the booming lithium market.

Let’s explore how our solution fits your operation and your strategy.

Contact us today to schedule a call and discover how Lithium Harvest can help you monetize waste, strengthen ESG performance, and stay ahead in energy evolution.

Want to help others understand the value of sustainable lithium extraction? Whether you're educating stakeholders, aligning your team, or exploring new business opportunities, our whitepapers are designed to make the case clear and compelling.

Give your team the insights they need to diversify operations, tap into new revenue, and lead the green energy transition - with Lithium Harvest by your side.

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