Lithium Demand Enters a New Growth Phase: EVs + Grid Storage (S&P Global)

📈 Lithium Demand: A Structural Metals & Mining Theme 2026 S&P Global flags battery energy storage systems (BESS) as the fastest-growing driver of lithium demand into 2026, alongside EVs. While EVs remain the largest consumer, lithium demand from energy storage is estimated at 380,000 MT in 2025 (90% YoY growth), with mid-double-digit growth expected in 2026 as renewable penetration and grid stabilisation needs rise. This dual demand base (EVs + storage) reduces reliance on EV-only growth and brings the lithium market closer to balance by late 2026. 🔋Battery Chemistry Split Growth is led by LFP (Lithium Iron Phosphate) batteries which are cost-efficient, safer, and dominant in mass-market EVs and stationary storage, driving lithium carbonate demand. Nickel-rich chemistries (NCM/NCA) remain critical for higher energy density EVs, supporting lithium hydroxide and advanced specialty chemical demand. 🇮🇳 India’s Battery Chemicals Opportunity Indian specialty chemical players are quietly aligning with this global shift. Neogen Chemicals is building domestic capability in lithium electrolyte salts (including LiPF₆) and full electrolyte formulations, critical across both LFP and nickel-rich batteries. Gujarat Fluorochemicals is scaling up fluorinated battery materials called LiPF, electrolyte formulations, PVDF/PTFE binders and LFP inputs, aiming to be an integrated supplier to the EV and storage ecosystem. Himadri Speciality Chemicals is investing aggressively into LFP cathode materials and battery components, positioning itself upstream in India’s EV and energy storage supply chain. Bottom line: Lithium is no longer a pure EV story. Grid storage + EV adoption + localisation of battery materials create a multi-year structural runway for select Indian specialty chemical companies.