US imports of lithium materials and critical minerals that are used in electric vehicles and other clean energy applications rose year over year in the second quarter, according to S&P Global Market Intelligence data.

Imports of processed lithium materials, which include lithium carbonate and lithium hydroxide, increased 8.7% year over year to 3,709 metric tons in the June quarter.

Second-quarter imports of refined lithium compounds also rose year over year, jumping 49.2% to 17,122 metric tons. Raw lithium is processed and subsequently refined into chemicals that can be applied as cathode materials and electrolyte solutions for batteries.

Sales of plug-in electric vehicles (PEV) have slowed down in 2024, but the US market is still growing, said Alice Yu, a senior metals analyst at S&P Global Commodity Insights. In a July 22 presentation covering the second quarter, Yu said the outlook remains positive for the EV sector despite near-term headwinds, with passenger PEV expected to drive 88.2% of lithium demand growth in 2023–2028.

"Governments remain undeterred on the future of PEVs, however, with policymakers across several key countries announcing a cluster of rules promoting the onshoring of their PEV supply chains," Yu said in a May 28 report.

South American nations Chile and Argentina accounted for the majority of US imports of processed lithium materials in the second quarter. Chile shipped 2,290 metric tons or 61.7% of total US imports, while Argentina accounted for 35.0% with 1,299 metric tons.

Chile is a free trade agreement (FTA) partner with the US, making its lithium products eligible for tax credits under the Inflation Reduction Act. Argentina is not an FTA partner with the US but the two nations signed an agreement in late August to boost critical mineral supply chains.

Meanwhile, FTA partner Canada exported 9,588 metric tons of refined lithium compounds to the US in the June quarter, representing 56.0% of US imports. Imports from China accounted for 27.7% or 4,747 metric tons.

US imports of critical minerals, which include manganese, cobalt, rare earths and antimony, climbed 33.7% year over year to 168,993 metric tons in the second quarter. Gabon provided 31.6% of US critical mineral imports with 53,443 metric tons. China and Mexico each accounted for 11.8% of critical mineral shipments to the US in the June period.

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The increasing shipments came ahead of an August announcement by China that it would restrict exports of antimony — a key metal used to produce bullets and solar panels among other applications — starting Sept. 15 due to national security concerns. Increasing demand for EVs has also boosted consumption of manganese and cobalt, while rare earths are key materials in the permanent magnets used in wind turbines.