MethodologyContact usSupportLogin
Key takeaways:
Accelerating energy storage deployment is reshaping lithium demand, broadening the market beyond electric vehicles (EVs) and reducing reliance on a single growth driver, Liontown Resources chief executive officer Tony Ottaviano told Fastmarkets in an interview on Friday February 27.
Ottaviano said large-scale energy storage systems are increasingly being deployed to support renewable generation and stabilize electricity grids, particularly in markets experiencing rapid load growth from electrification and data centers.
“Demand is no longer just an EV story,” he said. “Stationary storage is becoming a significant second engine.”
Fastmarkets analysts forecast that the number of global energy storage systems installations would increase by around 25% every year over the next decade, to nearly 800GWh by 2030 and to more than 1,600GWh by 2035.
In some regions, storage is used to offset peak generation requirements, effectively reducing the need for additional infrastructure investment in conventional power capacity, according to Ottaviano.
Ottaviano said this shift strengthens the long-term demand outlook and provides greater resilience compared with previous cycles, when EV penetration was the dominant – and sometimes singular – consumption driver.
From Liontown’s perspective, the diversification of end-use applications broadens lithium’s exposure beyond passenger vehicle sales curves and introduces structural demand tied to grid reliability and infrastructure expansion, he added.
Ottaviano said the company views the diversification as materially reducing concentration risk in the demand base, particularly as grid-scale storage becomes more integrated into national energy planning frameworks.
Perth, Australia-based Liontown commenced production at Kathleen Valley in April 2025. The project has fully transitioned to underground mining and is on track to reach a 1.5 million tonnes per year run-rate by the end of March.
While demand is evolving, Ottaviano said the supply side remains the key area of focus.
The company monitors material flows across multiple layers of the battery value chain, including raw material inventories, conversion output in China, and finished goods stock held by original equipment manufacturers.
Although transparency across the chain is imperfect, Ottaviano said trend analysis can signal turning points before they appear in headline pricing.
According to Ottaviano, industry participants have been closely watching Chinese conversion margins and inventory levels following the sharp lithium price correction in 2024-25.
While inventories were widely believed to have been elevated during the downturn, recent activity including stronger spot engagement suggested tighter near-term balances in parts of the market.
Ottaviano said inventory movements are particularly important because they can either mask or amplify shifts in demand. When stocks build, price signals may lag consumption; when they draw down, markets can tighten rapidly, especially given the time required to bring new greenfield supply online, he told Fastmarkets.
Ottaviano added that many deferred lithium projects would require several years of capital formation and construction before contributing materially to global supply.
As a result, sustained demand growth would initially need to be met by existing producers – a dynamic that can heighten volatility but also reinforces the value of disciplined operations.
Ottaviano said this structural timing mismatch between demand growth and new supply development is one of the most important factors shaping the current market cycle.
Liontown’s approach is to maintain operational discipline while preserving optionality, ensuring the company is positioned to respond to sustained market recovery rather than short-term price fluctuations, according to Ottaviano.
Fastmarkets’ assessment of the spodumene, 6% Li2O min, spot price, cif China peaked at $8,287.50 per tonne in December 2022, amid strong demand and tight supply, before additional capacity and softening demand contributed to prices falling back to as low as $610 per tonne in June 2025.
The market has since staged a recovery, with Fastmarkets’ daily assessment of the spodumene, 6% Li2O min, spot price, cif China standing at $2,430-2,500 per tonne on Friday February 27, up from $1,985-2,100 per tonne a week earlier.
Fastmarkets’ experts are embedded in this market, providing price data and market intelligence to help you make sense of today and tomorrow. Stay informed through our news, forecasting and analysis. Find out more about our lithium market insights today.