The aim of the project is to characterise both components of the nearest brown dwarf sytem to the Sun, WISE J104915.57-531906.1 (=Luhman16AB) at optical and near-infrared wavelengths. We obtained high signal-to-noise intermediate-resolution (R~6000-11000) optical (600-1000 nm) and near-infrared (1000-2480nm) spectra of each component of Luhman16AB, the closest brown dwarf binary to the Sun, with the X-Shooter instrument on the Very Large Telescope. We classify the primary and secondary of the Luhman16 system as L6-L7.5 and T0+/-1, respectively, in agreement with previous measurements published in the literature. We present measurements of the lithium pseudo-equivalent widths, which appears of similar strength on both components (8.2+/-1.0 Angstroms and 8.4+/-1.5 Angstroms for the L and T components, respectively). The presence of lithium (Lithium 7) in both components imply masses below 0.06 Msun while comparison with models suggests lower limits of 0.04 Msun. The detection of lithium in the T component is the first of its kind. Similarly, we assess the strength of other alkali lines (e.g. pseudo-equivalent widths of 6-7 Angstroms for RbI and 4-7 Angstroms for CsI) present in the optical and near-infrared regions and compare with estimates for L and T dwarfs. We also derive effective temperatures and luminosities of each component of the binary: -4.66+/-0.08 dex and 1305(+180)(-135) for the L dwarf and -4.68+/-0.13 dex and 1320(+185)(-135) for the T dwarf, respectively. Using our radial velocity determinations, the binary does not appear to belong to any of the well-known moving group. Our preliminary theoretical analysis of the optical and J-band spectra indicates that the L- and T-type spectra can be reproduced with a single temperature and gravity but different relative chemical abundances which impact strongly the spectral energy distribution of L/T transition objects.