Growing production of lithium-ion batteries has created significant demand growth for lithium concentrates and compounds, but higher prices and supply-availability concerns have impacted other lithium end-uses including greases, glass and ceramics manufacturers.  

The use of lithium within Li-ion batteries powering the rise of electric vehicles and energy storage systems has been a hot topic since the mid-2010s, with demand from battery applications increasing more than sixfold since 2015. The rise of battery demand has seen the lithium supply chain transition from an obscure industrial industry to one at the forefront of technology development, although those end-use markets which historically supported lithium demand are now under an increasing strain.

Prior to 2014, ceramics, glass and glass-ceramic applications formed the largest end-uses for lithium products, consuming lithium carbonate and technical grade lithium mineral concentrates. Industrial greases also formed the key end-use market for lithium hydroxide prior to 2017, though battery applications have since becoming the largest consumer. 

The rapid growth in demand from battery applications has created fierce competition for lithium feedstock between industrial applications and the growing consumer base of battery component manufacturers. Growth in demand from battery component manufacturers has also altered the types of lithium products being produced, with chemical grade mineral concentrates and battery grade lithium compounds replacing production of technical grade products used in more industrial applications.

Ceramics and glass producers have experienced increased prices for lithium feedstocks, though lithium remains a critical component of certain ceramic and glass products to achieve the required physical characteristics. Lithium reduces the thermal expansion of various specialist glass products allowing for their use in cooker tops and fire resistant glass. The strong fluxing properties of lithium also make it a key material for ceramic glazes, allowing for reduced firing temperatures and improved finish. 

The availability of low-iron ‘technical grade’ mineral concentrates and lithium carbonate has tightened since the mid-2010s, with feedstocks often being consumed by converters for the production of battery products and limited new capacity being commissioned. This has led to substitution of some lithium products from industrial applications. In applications where lithium is an essential component, such as glass-ceramics, increases in lithium prices have been passed on to consumers. In 2021, Dr. Jan Hochdörffer, Head of Strategy and Business Development of Business Unit Home Tech at SCHOTT stated, “Higher lithium prices will likely drive price increases for corresponding products – and unfortunately the periodic table of elements offers no replacement for lithium”.

Substitution of lithium products has been most notable within industrial grease industry. Lithium thickeners have been a dominant technology within the industrial grease industry since the mid-20^th century, forming roughly 70%-75% of all grease production in 2019 according to the National Lubricating Grease Institute. Lithium hydroxide is the primary lithium compound consumed, though tight supply of technical grade hydroxide and competition from battery applications have increased lithium hydroxide prices ten-fold since 2020. Ironically, electric vehicles and industrial electric motors, the very markets causing shortages of lithium raw materials, are reliant upon industrial grease to reduce friction and improve their efficiency. For electric vehicles, ensuring sufficient grease availability is paramount to sustaining the range and performance of motors, and reducing maintenance costs. 

The dominance of lithium greases over the past 80 years has led to limited research and development of alternative grease thickeners, though recent price pressures have changed this mentality. The development of ‘novel’ thickener systems has accelerated since 2021, restarting research on technologies previously left by the way-side and identifying new potential thickener materials. 

Calcium based thickeners, with no contained lithium, have been shown to display characteristics similar to or better than comparative lithium based thickeners. With lithium demand from battery applications expected to maintain and intensify supply-chain pressures for lithium hydroxide, cost pressures will likely see substitution of lithium greases by alternative technologies where possible. Project Blue forecasts lithium demand in greases will show a gradual decline over the coming decade, falling at a CAGR of 0.7%py. As a result the market share of lithium greases is set to fall from roughly 2.5% in 2022, to less than 1% by 2030, far below the 9.6% observed in 2013.