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Lithium has rapidly evolved from a niche industrial mineral into one of the world’s most strategically important resources. It powers electric vehicles (EVs), large-scale renewable energy storage, mobile devices and the emerging wave of autonomous mobility. As EV giants like BYD, Tesla and mobility platforms like Waymo scale production and fleets, global demand for lithium is accelerating sharply, creating both opportunities and risks for producing countries.
For Zimbabwe, which holds some of the largest hard-rock lithium reserves in Africa, this global shift presents a historic opportunity. The question is no longer whether lithium demand will grow, it’s how fast and whether Zimbabwe is positioning itself to capture long-term value.
Global Lithium Demand at a Glance
Electric car sales topped 17 million in 2024 and are forecast to exceed 20 million in 2025, meaning EVs now account for roughly a quarter of new car sales.
Global battery (cell) manufacturing capacity grew nearly 30% in 2024 to more than 3 TWh, with China holding 85% of capacity. That expansion directly translates into greater lithium demand.
Market balance has been volatile: analysts saw a tight market in 2025 (small oversupply turning into deficit territory by 2026 in some scenarios), and prices have been volatile but showed a rebound through 2025.
These numbers show two simple facts: EV adoption is not slowing, and industry participants are rapidly building battery cell capacity, both are primary demand multipliers for lithium.
What Is Driving the Lithium Boom?
What Is Driving the Lithium Boom?
Explosive growth of electric vehicle
EV sales continue to rise across all major markets. Each electric vehicle requires tens of kilograms of lithium in its batteries. With millions more EVs produced each year, lithium demand rises proportionally.
Battery gigafactory expansion
Battery manufacturing capacity is multiplying globally. In 2024 alone, capacity increased to more than 3 TWh, creating massive pull for lithium carbonate and hydroxide. This industrial build-out underpins long-term demand.
Electrification of autonomous mobility
Companies like Waymo are deploying electric robotaxi fleets — high-utilization vehicles that consume batteries faster and require frequent replacements. Fleet electrification is becoming a new demand accelerator.
Data Centers & AI
The power-hungry nature of Google, Microsoft and OpenAI data centers and the growth of AI applications are increasing overall electricity demand, necessitating more lithium battery storage.
Growing solar energy storage demand
As nations invest heavily in solar and wind, lithium-ion batteries are being deployed for grid storage to stabilize power supply. This segment is now one of the fastest-growing demand contributors.
Slow supply growth
New mines and processing plants take years to come online. This lag keeps supply tight relative to fast-moving demand, reinforcing long-term price strength.
BYD's Mega Factory Effect: Why it matters for Lithium
In 2025, BYD unveiled a massive manufacturing complex widely described as “bigger than San Francisco”, roughly 130 square kilometres in scale. This isn’t just an assembly plant, it’s a fully integrated “factory city” combining EV assembly, battery-cell production and component manufacturing under one ecosystem. Drone footage and reports highlight its unprecedented size and output capacity.
Why this matters for lithium?
Scale + vertical integration: BYD produces vehicles, battery cells and packs in the same complex. Lithium carbonate and hydroxide entering the plant are rapidly converted into battery cells and EVs, dramatically increasing the rate at which lithium is consumed.
China’s manufacturing dominance: China already leads global battery production. BYD’s new mega-complex further boosts local demand for lithium and tightens competition for raw materials, pushing global buyers to secure long-term supply contracts.
Gigascale production impact: At full operation, a factory of this size consumes huge volumes of cathode and electrolyte materials. Even with BYD’s use of LFP in some models, overall battery output across multiple vehicle lines significantly increases lithium demand.
The Bottomline
The global race for lithium is intensifying as EV leaders like BYD, Tesla and emerging autonomous fleets like Waymo expand production. BYD’s giant new factory alone represents a massive new wave of battery and EV output and therefore skyrocketing lithium requirements.
For Zimbabwe, this is not just an opportunity; it is a strategic turning point. The countries that supply the lithium powering the world’s electrification will play a key role in future industrial and geopolitical dynamics.
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