The global lithium market was surpassed at USD 6.86 billion in 2021 and is expected to hit around USD 19.2 billion by 2030, growing at a CAGR of 12.12% from 2022 to 2030.
Rising investments in lithium mining and related technologies are projected to remain a key trend in the market. Lithium mining is witnessing rapid growth as its demand is accelerating owing to its application in batteries. The element is found in dry places that require thousands of liters of water for its mining. Considering the rising demand for elements and increasing usage of water required for its extraction, R&D is in place to find better alternative methods. For instance, in February 2020, funding of around USD 20 million by Bill Gates was provided to Lilac Solutions, a lithium mining technology firm located in the U.S.
According to the firm, its ion exchange technology is two times more efficient compared to the current mining process and requires a fraction of time. Lithium recycling is a complex process; however, with the rising penetration of Li-ion batteries, the demand may outpace supply. Therefore, researchers are focusing on extraction and recycling through various new technologies. Lithium compounds are extracted from batteries as per individual methods and stages. The stages are divided into pre-treatment and extraction stages; while extraction is again categorized into hydrometallurgy, pyrometallurgy, and electrochemical extraction. Despite the growing emphasis and development of different recycling technologies, less than 1% of lithium is recycled currently.
Over the last decade, the rise in usage of Li-ion battery storage has led to a decline in their prices by over 80%, leading to enhanced energy storage and paving the way for Electric Vehicles (EVs) to be commercially viable. Government regulations and subsidies are working on expanding clean energy; thus, energy storage systems represent a huge opportunity for investors. However, expensive raw materials required to produce energy storage systems may remain a critical factor for investors. As per the International Energy Agency, new companies in clean energy have attracted significant investments during the COVID-19 pandemic. Early-stage Venture Capital (VC) investments reduced slightly in the first half of 2020. However, these investments recovered quickly, with record investments from the third quarter of 2020.
Scope of The Report
|Market Size in 2021||USD 6.86 billion
|Revenue Forecast by 2030||USD 19.2 billion|
|Growth rate from 2022 to 2030||CAGR of 12.12%
|Forecast Period||2022 to 2030|
|Segmentation||Product, application, region
Albemarle Corp.; Ganfeng Lithium Co., Ltd.; SQM S.A.; Tianqi Lithium Corp.; Livent Corp.; Lithium Americas Corp.; Pilbara Minerals; Orocobre Ltd. Pty. Ltd.; Mineral Resources
The carbonate product segment dominated the market and accounted for the largest share of over 57.02% in 2021, in terms of volume. Lithium Carbonate (Li2CO3) is the most stable inorganic compound and is used in forming other compounds, such as LiOH and even pure metal. Carbonates products are also used in the treatment of bipolar disorder. This compound is also used in batteries and has several applications in the construction sector for waterproofing slurries and as adhesives. LiOH is a white hygroscopic crystalline material and an inorganic compound mostly used by battery manufacturers; it is commercially available as anhydrous and monohydrate.
It has usage in transportation applications in the manufacturing of submarines and spacecraft. In addition, rapid development in battery technologies is propelling the demand for LiOH, thus, driving market growth. Many automotive players are inclined to adopt LiOH for battery manufacturing, which is expected to benefit market growth positively. For instance, BMW Group signed an agreement with Ganfeng Lithium, a lithium extracting company in China, for supplying LiOH for battery cells owing to the rising penetration of EVs. Rising awareness regarding eco-friendly vehicles is driving the demand for EVs on account of which, BMW has planned to introduce 25 electrified models with Li-ion batteries.
The consumer electronics application segment is estimated to register the fastest CAGR of more than 15.04%, in terms of revenue, from 2022 to 2030. The segment is projected to grow owing to the increasing sales of electronic devices, such as mobile phones, laptops, cameras, portable radios, speakers, and Mp3 players, which make use of Li-ion batteries. Characteristics, such as low weight, large energy storage, and small size are driving the demand for batteries; thus, positively influencing the growth of the segment. Single-use, non-rechargeable Li-ion batteries are used in remote controllers, handheld games, cameras, and smoke detectors.
Rechargeable lithium-polymer cells are used in cell phones, laptops, toys, digital cameras, small and large appliances, tablets e-readers, and power tools. These batteries are made from critical materials, such as cobalt, graphite, and lithium, and need to be handled with safety and precautions. Various developed countries are investing increasingly in the deployment of energy storage systems based on Li-ion batteries; thus, fueling the growth of the market. For instance, in June 2021, the U.K. launched a 50-megawatt energy system connected with the high-voltage transmission system of its National Grid. This project is a part of the USD 48.5 million Energy Superhub Oxford (ESO) plan of the country. The project is being led by Pivot Power and is backed by the Government of the U.K.
Asia Pacific dominated the global market in 2021 and accounted for the largest volume share of more than 57.03% in 2021 owing to the rapidly developing automotive, glass, and consumer goods industries in countries, such as China, Japan, South Korea, and India. The region will expand further maintaining the dominance growing at the fastest CAGR, in terms of volume, over the forecast period. The ongoing investments in the region to advance the battery technology sector is anticipated to drive the market growth over the forecast period. To meet the plans and targets pertaining to EV and battery sectors, various countries in the region are witnessing developments in the industry.
In July 2020, Khanij Bidesh India Ltd. (KABIL), a joint venture between the NALCO, Mineral Exploration, and Hindustan Copper signed a start-up agreement with Jujuy Energia y Mineria Sociedad del Estado (JEMSE) for the production & exploration of lithium. This agreement was in line with India’s efforts to establish a battery supply chain to meet the EV targets. Europe accounted for the second-largest share of the global revenue in 2021 and is projected to witness steady growth from 2022 to 2030. The growth of the market in Europe can be attributed to the increasing production of EVs in the region. Europe surpassed China in terms of EV production and became the largest manufacturer of EVs in the world in 2020. The flourishing EV market in Europe has attracted foreign companies to invest in the region.
Cosmetic Packaging Market (By Material Type: Plastic, Paper; By Cosmetic Type: Skin Care, Make-up) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030Read more...
Hydrofluoric Acid Market (By Grade: Anhydrous, Diluted; By Application: Fluorocarbon, Metal Pickling) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030Read more...
Zinc Oxide Market (By Application: Rubber, Paints & Coatings, Chemicals, Ceramics; By Process: Wet Chemical, Direct, Indirect) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030Read more...
Base Oil Market (By Product: Group I, Group II, Group III, Group IV, Group V; By Application: Automotive Oils, Process Oils, Industrial Oils) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030Read more...
Succinic Acid Market (By Type: Petro-based, Bio-based; By End Use: Food & Beverages, Pharmaceuticals, Industrial) - Global Industry Analysis, Size, Share, Growth, Trends, Revenue, Regional Outlook and Forecast 2022-2030Read more...