Lithium was first discovered and defined by by J.A. Arfvedson in 1817 when he did an analysis of a mineral he had found. This mineral, petalite (LiAl(Si2O5)2), was first found by Brazilian scientist José Bonifácio in 1800. Arfvedson was never able to fully isolate lithium, and it wasn't until 1855 that it was isolated, by W.T. Brande. Lithium was first produced commercially in 1923, by Metallgesellschaft AG.

Demand for lithium is increasing from the current market of ~ 100,000 tonnes LiCO2 equivalent. Lithium ion batteries have become the rechargeable battery of choice and are now almost used exclusively in cell phone and computer batteries with items such as shavers, power tools, and hybrid and electric cars switching over from the nickel varieties. The benefits of lithium ion batteries include; higher energy density to weight ratio, longer life, and no memory effect.

Automotive companies have recently been announcing that lithium ion batteries will be in their hybrid cars in 2009 and 2010. Toyota is targeting 1 million hybrid cars for 2010. Hybrid car numbers continue to increase as a result of increasing fuel prices and emission issues with conventional vehicles. For every one unit of lithium in a cell phone battery there are 7 in a computer battery, 3,000 in a hybrid car and 7,000 in an electric car; this is 9 to 30 kilograms of Li2O per battery.

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