Global Lithium Demand to Grow Despite Trump Policies

While Donald Trump’s rollback of EV targets may temporarily dampen demand for lithium and other critical minerals, analysts remain confident in the resilience of the industry amid robust global EV growth.

Trump has rescinded a 2021 executive order by his predecessor, Joe Biden, which set a goal for EVs to comprise half of all new vehicles sold in the US by 2030.  The policy reversal led to demand declines for Japanese automakers, South Korean battery manufacturers, and lithium miners across the United States, Australia, and China. However, experts predict that while US EV adoption may falter, demand growth in other regions will more than compensate. “Reducing subsidies or incentives certainly impacts demand. But global EV demand will continue to grow, even if the US lags under Trump’s policies,” said Glyn Lawcock, Analyst, Barrenjoey. 

Australian lithium producer Liontown Resources pointed to China’s dominance in the EV market, with 11 million units sold annually, representing 65% of global sales. North America accounts for just 20%, while other regions are expanding rapidly at an annual growth rate of 27%. This growth trajectory is expected to make these markets collectively more significant than North America within two years.

Demand for lithium is also fueled by the proliferation of grid-scale battery projects and critical metals used in electronics and AI infrastructure. At the World Economic Forum, Rio Tinto CEO Jakob Stausholm expressed optimism about the lithium market. “Demand will likely increase fivefold over the next 15 years, necessitating significant new lithium projects. My nine years of EV ownership confirm it as a better vehicle than internal combustion engines.”