A new study is raising serious concerns about water scarcity in key lithium-producing regions—posing a potential risk to the long-term stability of global electric vehicle (EV) and battery production. As the demand for green technologies accelerates, limited freshwater resources in South America's Lithium Triangle may become a critical bottleneck in the transition to renewable energy.
Research from the University of Massachusetts Amherst has revealed major discrepancies in global water availability estimates within the Lithium Triangle, a region encompassing parts of Chile, Argentina, and Bolivia that supplies over 50% of the world’s lithium.
The study introduced a region-specific model—Lithium Closed Basin Water Availability (LiCBWA)—to better evaluate water dynamics in the arid Andean basins. Contrary to conventional models estimating annual inflows between 90 and 230 millimeters, the updated findings indicate a drastic reduction: actual inflows range from just 2 to 33 millimeters per year, with a regional average of only 11 millimeters.
These findings highlight the need for precise, localized hydrological assessments as lithium demand is projected to surge by up to 40 times in the coming decades.
The lithium industry is undergoing a technological transformation, with Direct Lithium Extraction (DLE) gaining traction over traditional evaporative techniques. However, the transition is not without consequences for water sustainability.
Preliminary data reveals that more than half of existing DLE facilities in the Lithium Triangle consume more water than conventional methods. In fact, nearly one-third of these sites use up to ten times the water required by traditional brine evaporation processes.
While DLE offers efficiency and scalability benefits, its water-intensive nature adds pressure to already constrained freshwater systems. This underscores the importance of integrating water-conscious strategies into future extraction methods.
Water scarcity in lithium-rich regions is no longer a local environmental concern—it’s a global supply chain issue. The findings carry significant implications for companies throughout the green energy value chain, including EV manufacturers, battery producers, and materials suppliers.
To mitigate the risks, businesses may need to:
Companies that fail to address water-related challenges could face higher operational costs, regulatory constraints, or supply disruptions—factors that may compromise competitiveness in an increasingly resource-aware market.
The research was conducted with support from major industry players, including BMW Group and BASF, reflecting growing concern from corporate stakeholders about the long-term viability of lithium sourcing strategies.
As global demand for electric vehicles and energy storage solutions continues to rise, water scarcity must be viewed as a strategic business risk—not just an environmental issue. Sustainable extraction practices and water stewardship will be essential in securing resilient, ethical supply chains for the future of clean energy.
