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Cheap batteries could lose their value proposition if mines can't produce the minerals they need. A shortage could upend whole industries
Lucas Aguayo Araos / Anadolu Agency via Getty Images
Cheap batteries are transforming the power grid. They store solar power during the day and release it after dark, replacing natural gas. But they're made from lithium, nickel, and cobalt, minerals that take years to mine, and the mines can't keep up.
The world added 46% more battery storage in 2025 than the year before, and a 45% price drop pulled demand for those minerals even higher. Lithium demand alone rose almost 30% in 2024, triple the previous decade's rate, driven by batteries and electric cars. Announced mine projects would cover only about half the lithium the world needs by 2035 under current climate pledges, according to the International Energy Agency, and the gap is expected to widen through the 2030s. If mines can't close it, cheap batteries won't stay cheap.
