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ABSTRACT: Global decarbonization strategies depend on the large-scale electrification of the transport sector, mainly supported by lithium-ion battery technologies. Lithium’s role in assisting low-carbon mobility has driven a fast rise in demand. This has intensified concerns regarding resource scarcity and supply chain vulnerabilities, particularly in the European Union, which remains heavily dependent on imports. The restricted availability of lithium and other critical raw materials, compounded by geopolitical tensions, poses a risk to the resilience of the clean energy transition. In this sense, the adoption of circular economy principles has emerged, emphasizing material recovery, recycling, and resource efficiency. This review provides a comprehensive analysis of lithium relevance in the energy transition, with a focus on resource trends, recovery technologies, and battery production. A systematic understanding of these trends and challenges is needed to guide future developments and ensure a secure, sustainable, and circular lithium value chain that supports the transition to clean energy systems.