The lithium industry is growing more optimistic about a market recovery as booming demand for battery storage systems helps offset a slowdown in some electric vehicle markets, leading producers told an industry conference this week. While electric vehicles have been the main driver of lithium demand for years, regulatory changes in the United States and elsewhere have cooled sales in some key markets. That slowdown coincided with industry overproduction, pushing lithium prices sharply lower. But growing demand for stationary battery storage systems, driven by the expansion of artificial intelligence and efforts to strengthen power grids, is helping reshape the market outlook. "The period of market overcorrection is over," said Raju Daswani, CEO of consultancy Fastmarkets. "Energy storage has become a primary driver of growth in this market."