There is a massive lithium shortage already. The problem with lithium is most of it is sourced from what are effectively deserts and refining of lithium requires an enormous amount of water.
Lithium is in hot demand due to rapidly growing production of electric vehicles that use lithium-ion batteries, but there is a global supply shortage of the metal, with western countries racing to bring on new mines to compete with China.
www.reuters.com
Here are the key ways of mining lithium, a highly reactive material that is used in batteries for electric and hybrid vehicles. Demand is likely to double over the next decade as more electric vehicles arrive on the road.
www.reuters.com
Hundreds of Serbian environmental activists on Thursday blocked Belgrade's city centre, demanding a moratorium on lithium mining and exploration, following authorities' decision to revoke permits for Rio Tinto , and its $2.4 billion lithium project in the Balkan country.
www.reuters.com
Australian lithium miner Allkem Ltd said on Tuesday lithium carbonate prices for the second half of the fiscal year 2022 were expected to jump 80% from the first half because of booming demand for the metal used in electric vehicle batteries.
www.reuters.com
...a lot more where that came from.
There seems to be this false preconception that we'll only need x amount of lithium extracted from the planet and then we'll just recycle it over and over and over again. There were similar thoughts about plastic but turns out the only sensible thing to do with recycled plastics is...burn it:
Big Oil is touting “advanced recycling” as the solution to the world’s waste crisis. But the technology has yet to live up to its backers’ lofty claims, a Reuters review of 30 projects found.
www.reuters.com
Even recycling wind turbine blades has been mostly a failure...
Wind turbines have become a vital source of global green energy but their makers increasingly face an environmental conundrum of their own: how to recycle them.
www.reuters.com
We're completely failing at this whole environmentalism thing.
The economic things too.
There are some companies claiming they can recycle li-ion batteries but, as far as I know, there's no solid data on them actually succeeding. Just because a company claims they can do it doesn't mean they actually are (see plastic recycling as proof of that).