Lithium Market

Report Overview

In 2022, the global Lithium market size was valued at USD 5.2 Billion and is expected to grow around USD 12.0 Billion between 2023 and 2032, this market is estimated to register the highest CAGR of 8.9%.

The electrification of vehicles and the rising number of electric vehicles is resulting in the rise of the demand for Lithium-ion Batteries and thus drives the growth of the market globally. The automotive application is projected to witness significant growth during the forecast period, which is mainly driven by the regulations imposed by the government regarding carbon emissions from a vehicle.

This shifted the manufacturer’s interest toward producing EVs, which resulted in a rise in the demand for products related to Lithium. An additional booster to this market’s growth is the government’s subsidies for EVs.

The increase in the advancement of rechargeable batteries for mobile phones, laptops, and EVs is driven by the change in the lithium-ion battery market, which is expected to drive product demand.

The market has had a huge impact on the growth of the market by the rise in the adoption of electric and hybrid vehicles and energy storage systems. The key trend is the rising investments in Lithium mining and related technologies. Lithium mining is experiencing rapid growth as the demand for its battery application increases.

Key Takeaways

• Market Developments: It is anticipated that the lithium market is projected to experience an average compound annual growth percentage between 2023-2032 of 8.9% per annum.
• Lithium Market Overview: The lithium market encompasses many applications, from batteries and ceramics to lubricants and more. Lithium plays an essential part in energy storage as well as industrial uses.
• Product Analysis: When considering the Lithium Market, carbonate product segments stand out as dominating forces; with carbonate product segments experiencing the greatest global growth and commanding the largest volume share within it.
• Application Analysis: On an international market level, consumer electronics is poised for exponential growth thanks to increasing sales of devices that use Li-ion batteries as power sources. Its rapid expansion can only be explained by this dynamic fact.
• Driving Forces: Demand for lithium can be driven by factors like increasing sales of electric cars and hybrid cars; renewable energy integration projects; portable electronic device surge; government initiatives supporting sustainability goals and market expansion goals.
• Restrictions: Lithium markets face several difficulties that stem from supply-chain constraints and environmental considerations related to mining and extraction methods.
• Recent Trends: Recent developments in the global lithium market include advances in battery technology, sustainable lithium extraction techniques, and expanded efforts toward recycling lithium-ion batteries.
• Regional Analysis: North American market growth should experience rapid expansion throughout this forecasted period, due to stringent regulations leading to wide-scale adoption of cleaner energy sources by residents – fuelling market expansion within this region.
• Key Players in the Lithium Market: As leading entities within the lithium market, leading entities include lithium mining companies, battery manufacturers, and technology innovators with well-established names within this space. Collaboration, technological advances, and strategic expansion efforts among these key entities help maintain their edge within an increasingly contested lithium marketplace.

Drivers

Increase In The Adoption Of The Electric Vehicle To Drive The Demand Of The Market.

The rise in the evolution of the automotive industry over the last few years, along with technological advancement, will have a great impact on the growth of the Electric vehicle market. Electric Vehicles are designed to replace conventional traveling methods with technological advancements, low maintenance, smoother drive, low carbon emission, reduced engine sound, and high fuel economy.

Electric vehicles help reduce air pollution in highly populated areas and GHG emissions. The rise aids the electric vehicle market growth in demand for low-emission, high-performance, and fuel-efficient vehicles manufactured following government regulations towards vehicle emission. These are the main factors to drive the growth of the market globally.

Restraints

Environmental Concerns and The Recycling May Hinder The Growth Of The Market.

The extraction of the Li has a social and environmental impact, generally due to pollution and water depletion. Also, toxic chemicals are required to process Li. Due to this, the release of such toxins can harm the ecosystem, communities, and food production through Air emissions, spills, or leaching.

Air pollution and soil are damaged due to the extraction of the Li. Locals claimed in Argentina that the operation of the Li extraction had contaminated the streams used by livestock and humans. Also, there is a rising concern regarding the recycling of the product. The product’s recycling scope is very low as the material is highly flammable, reactive, and toxic.

Product Outlook Analysis

The Carbonate Product Segment Dominates The Growth Of The Market Globally.

By Product Lithium Market Outlook, the carbonate product segment dominates the growth of the market globally and holds the largest lithium market share in terms of volume. Stable inorganic, which is used to form other compounds such as LiOH and can also form pure metal, is called Lithium Carbonate.

For the treatment of Bipolar disorder, carbonate products are used. This compound is also used in batteries and has several applications in the construction sector for waterproofing slurries and can be used as an adhesive. Many automotive manufacturers are trying to adopt LiOH battery manufacturing which is expected to drive the market’s growth globally.

Application Analysis

The Consumer Electronic Segment Dominates The Growth Of The Market Globally.

By Application, the consumer electronics segment dominates the market growth globally and is expected to register the highest CAGR for the forecasted period. As the sales of electronic devices rise making use of Li-ion batteries will eventually result in the growth of the segment.

The growth of the market is mainly driven by characteristics such as large energy storage, low weights, and small size, thus positively impacting the growth of the market. Rechargeable lithium-polymer cells are used in laptops, cell phones, toys, etc. Graphite, lithium, and cobalt are the critical materials from which these batteries are manufactured, which need to be handled with safety and precautions.

Key Market Segments

Based on Product Outlook

• Carbonates
• Hydroxide
• Others

Based on Application

• Industrial
• Consumer Electronics
• Energy Storage
• Medical
• Automotive
• Other End-user Industries

Opportunity

The lithium Battery manufacturer will be experiencing supply chain disruption due to the rising demand from APAC and SA, which are the sources of lithium and other raw materials. The production and development of the battery are crucial for the automotive industries in the U.S., which will dominate globally.

The manufacturers of lithium-ion cells are mostly from the U.S., China, and Europe. The Biggest Opportunity for lithium-ion battery manufacturers is the electric vehicles, and the upcoming models of electric vehicles are planning to hit the market.

Trends

Companies Creating Environmentally Sustainable Solutions For Lithium-Ion Battery And Electric Vehicles.

The growth in the Lithium-ion battery market has eventually increased the demand for the product. Lithium-ion batteries are a very important component in keeping the environment clean. Around 12 kilograms of Lithium is present in the Tesla Model S, whereas the grid storage solutions can balance renewable energy.

Batteries are developed by IBM, which is free of cobalt, nickel, and various heavy metals, which helps avoid the environmental and humanitarian issues related to Lithium-ion technology. Electric vehicle manufacturing companies are continuously changing their preferences which depend on the cathode characteristics in terms of stability, safety, cost, life, and energy density.

Electric vehicles are promoted as a source of efficient transportation choice based on the Life-cycle, as they emit less GHG than conventional vehicles.

Regional Analysis

The Apac Region Dominates The Growth Of The Market Globally.

During the forecasted period, the market in North America is likely to expand significantly. Due to stringent regulations, most people are adopting cleaner energy sources, driving the growth of the market in the region.

The use of environmentally friendly and sustainable energy sources like geothermal, wind, solar, and others is encouraged by a number of schemes and funding programs arranged by the Environmental Protection Agency, also called EPA.

The rising popularity and the adoption of solar panels have resulted in a rising demand for energy storage cells and batteries. The aerospace industry is electrifying helicopters, satellites, and aircraft with the help of Lithium-ion batteries. Product demand will rise as the adoption of Li-ion batteries increases more widely in space applications.

Due to widespread product usage in the industrial and commercial sectors of power, chemical, consumer electronics, general manufacturing, industrial, and others, Asia Pacific is estimated to hold the largest global market share.

The rapid development of the Asia Pacific region is seen due to different government initiatives and due to the increase in foreign investments in the global industrial sector. The simple availability of raw materials is one of the things that is thought to support the lithium market’s expansion.

Key Regions and Countries

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia & CIS
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

SQM S.A., Albemarle, Avalon Advanced Materials, FMC Corporation, and others are major key players in the global lithium market. To gain a competitive edge in the market, businesses are engaged in new product launches, capacity expansions, acquisitions, joint ventures, and partnerships. In addition, manufacturers are concentrating on research and development trends in order to produce batteries with high-efficiency performance and develop new ones.

Market Key Players

• FMC Corporation
• Albemarle Corporation
• SQM S.A.
• Tianqi Lithium Corp.
• International Lithium Corp.
• LSC Lithium Corporation
• American Lithium Corp.
• Livent Corp.
• Avalon Advanced Materials Inc.
• Sayona Mining Limited
• Other Key Players

Recent Developments

• Ganfeng Lithium announced in June 2021 that it would increase its annual production of Li2CO3 by 600,000 tons equivalent due to the demand for the product used in electric vehicle batteries. The company will sell approximately 630 million worth of new shares to increase the capacity and potential of fund investment
• GBRacing introduced its new zero-e sustainability truck with MG Li-Ion Batteries in June 2020. Solar power technology and MG LIB will power the trucks entirely.

Report Scope