Artificial intelligence is transforming nearly every industry, from healthcare to finance to transportation. But behind the sleek interfaces and breakthrough models lies an overlooked truth: AI runs on massive amounts of power. And increasingly, the material making that possible is lithium.
The AI Energy Challenge
AI models require staggering amounts of electricity to train and operate. The International Energy Agency (IEA) projects that data center electricity demand could more than double by 2030, from about 415 terawatt-hours in 2024 to roughly 945 terawatt-hours, largely driven by AI.
Every large AI data center hosts thousands of GPUs running 24/7. These facilities can’t afford a second of downtime, and they draw power at a scale comparable to small cities. To meet these energy needs and ensure reliability, operators are turning to battery-based energy storage systems (BESS), the majority powered by lithium-ion technology.
Why Lithium-Ion Batteries Are Key
Lithium-ion batteries dominate both electric vehicles and energy storage because of their unique combination of traits:
- High energy density: Lithium stores more power in less space, critical for data centers where every square foot matters.
- Fast response time: Lithium batteries can deliver power instantly during grid disruptions or demand surges.
- Longevity and efficiency: They last longer, recharge faster, and waste less energy than lead-acid or nickel-based alternatives.
- Compact design: Lithium systems are smaller and lighter, reducing the footprint needed for backup storage.
As a result, lithium-ion batteries have become the backbone of uninterruptible power supply (UPS) systems and grid balancing for data centers. Schneider Electric notes that lithium-ion UPS solutions are now being rapidly adopted across the industry for their speed and resilience.
Google, for instance, announced it has deployed over 100 million lithium-ion cells across its global data centers, replacing traditional lead-acid batteries. This transition increases uptime reliability while lowering long-term maintenance costs.
How Lithium Powers AI Infrastructure
Lithium’s role extends beyond simple backup power. It supports nearly every layer of modern AI infrastructure:
- Backup and Emergency Systems: Data centers rely on lithium batteries to provide immediate power when the grid falters. Even a few milliseconds of delay could corrupt active AI training workloads.
- Energy Storage and Load Balancing: AI workloads cause unpredictable spikes in energy demand. Lithium-based BESS smooth these fluctuations, storing excess power when demand is low and releasing it when computing peaks.
- Integration with Renewables: Many hyperscale data centers aim for 100% renewable power. Lithium batteries make that feasible by storing solar or wind energy when production exceeds consumption and deploying it during gaps.
According to Precedence Research, the data center lithium-ion battery market is expected to grow from about $5.2 billion in 2024 to $17.7 billion by 2034, fueled largely by AI’s rapid expansion.
The Supply Chain Pressure
As AI grows, so does the pressure on the lithium supply chain. Most lithium extraction and refining occur in a handful of countries—mainly China, Australia, and Chile—creating supply vulnerabilities. McKinsey projects AI-ready data center capacity will expand by over 30% annually through 2030, which will significantly increase global demand for lithium.
That demand adds to existing pressures from electric vehicles and consumer electronics, raising concerns about availability and sustainability. At the same time, it’s driving investment in lithium recycling, direct lithium extraction (DLE) technologies, and alternative chemistries like sodium-ion and solid-state batteries.
The Bigger Picture
Lithium is more than just a metal, it’s a key enabler of digital progress. Without it, AI infrastructure would be less reliable, less sustainable, and far more expensive to operate. As AI continues to expand globally, lithium’s role in ensuring stable, low-carbon power will only grow.
The story of AI isn’t just about algorithms and chips, it’s also about the energy that fuels intelligence. In many ways, lithium has become to the AI age what oil was to the industrial era: the quiet, powerful resource driving a technological revolution.