Lithium Hydroxide Market Size was valued at USD 0.55 Billion in 2023. The Lithium Hydroxide industry is projected to grow from USD 0.61 Billion in 2024 to USD 1.24 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 9.22% during the forecast period (2024 - 2032). Increasing inclination towards use of electric vehicles and gadgets are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Short-term lithium hydroxide sales were affected by COVID-19. Early in the epidemic, demand for lithium hydroxide decreased because to supply chain snags and a downturn in the economy, particularly in the automotive and electronics industries. However, in 2021, the market recovered as the importance of renewable energy and energy storage increased, specifically in the context of international measures to reduce greenhouse gas emissions and adopt green energy. Spending on lithium-ion batteries for stationary energy storage and electric vehicles increased. The growing demand for lithium-ion batteries used in electric vehicles and the rising popularity of lithium hydroxide NCA cathode-powered power tools are the main drivers of the market CAGR.
Electric vehicle sales have been increasing quickly ly in recent years. sales of electric vehicles reportedly hit a record high of 4.7 million units in 2021, a 43% rise from the previous year, according to the International Energy Agency (IEA). Government subsidies and incentives, environmental concerns, and advancements in battery technology that have resulted in longer driving ranges and quicker charging periods are some of the facts that are driving the growth of the electric car market.
Batteries that use metallic lithium as an anode are known as disposable lithium batteries. These batteries are ideal for applications like pacemakers and other electronic medical equipment that require long-lasting power sources because of their long life and high charge density. Unlike rechargeable batteries, which can be recharged and used several times, these batteries are intended to be used just once before being discarded.
New and better lithium-ion battery technology is being developed as battery applications move towards having higher power needs and cheaper costs. To satisfy consumer demand for portable gadgets and electric cars with longer battery lives and quicker charging times, battery technology advancements are crucial. As a result, new materials, production techniques, and battery management systems have been created that can boost the efficiency and performance of lithium-ion batteries.
To boost the charge capacity of lithium-ion batteries, researchers are looking into anode material alternatives. Lithium-sulfur batteries, which theoretically offer a better energy density than conventional lithium-ion batteries, are one promising technological advancement. Lithium-air batteries are a different technology that is currently being developed; these batteries may have even better energy densities than lithium-sulfur batteries. Lastly, research is also being done on lithium-oxygen batteries, which may offer greater energy densities than lithium-air batteries.
Research and development efforts aimed at enhancing lithium-ion battery systems will soon present a wealth of options and drive industry expansion. The desire for better battery technology has never been greater due to the rise in electric vehicles and portable electronics. Thus, driving the Lithium Hydroxide market revenue.
April 2024
American Battery Technology Company (ABTC), traded on NASDAQ as ABAT, completed construction and began commissioning at its lithium hydroxide (LiOH) pilot facility, advancing its battery materials technology. This milestone is crucial to commercializing ABTC's technology to tap a large domestic primary lithium potential.
With this groundbreaking pilot demonstration system, ABTC CEO Ryan Melsert said the new facility is a big advance. “We have generated thousands of liters of lithium solution from claystone feedstock material demonstrating selective lithium liberation technologies.”
ABTC's Tonopah Lithium Flats Project demonstration of its patented lithium extraction technique relies on the new pilot plant. This plant integrates systems continuously and generates large amounts of battery-grade lithium hydroxide for key partners to qualify and evaluate.
Customers including car OEMs, battery makers, and cathode makers have toured the plant. They'll test and certify lithium hydroxide from hundreds of tons of processed claystone. To stabilize its battery-grade lithium hydroxide market, ABTC is considering long-term off-take arrangements.
This technique will be expanded by ABTC by building a commercial refinery that can produce 30,000 tons of lithium hydroxide yearly. This expansion will be at Tonopah Flats Lithium Project. In October 2022, the U.S. Department of Energy awarded ABTC $115 million to build this commercial refinery for its unique methodology. Engineering, procurement, and construction of the facility were done by Black & Veatch.
The Lithium Hydroxide market segmentation, based on application, includes batteries, Ceramic Glass, Lubricant Grease, and Air conditioning. The market for lithium hydroxide was dominated by batteries, and that dominance is predicted to persist. The legislative push towards adoption of non-renewable energy sources such as alternative clean fuels energy, enhanced fuel efficiency, & carbon emission needs, along with the rowing demand for energy resources, is anticipated to deliver a favorable climate for the battery industry.
The Lithium Hydroxide market segmentation, based on end use, includes Automotive, Electrical & Electronics, Marine, and Aerospace. The automotive category generated the most income. LiOH is becoming increasingly popular among automotive companies, which is anticipated to have a positive impact on the market growth. For instance, the growing popularity of EVs led BMW Group to execute a contract with Ganfeng Lithium, a Chinese business that extracts lithium, to supply LiOH for battery cells. BMW plans to release 25 electrified models with Li-ion batteries as a result of the demand for EVs being driven by growing awareness of environmentally friendly automobiles.
Figure 1: Lithium Hydroxide Market, by End Use, 2022 & 2032 (USD Billion) 
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Lithium Hydroxide market area will dominate this market, owing to an increase in the production of lithium-ion batteries across the region. In addition, the growing electronics industry will boost market growth in this region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: LITHIUM HYDROXIDE MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Lithium Hydroxide market accounts for the second-largest market share due to the growing adoption of electric vehicles. Further, the German Lithium Hydroxide market held the largest market share, and the UK Lithium Hydroxide market was the fastest growing market in the European region
The Asia-Pacific Lithium Hydroxide Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rise in research and development activities for producing advanced battery. Moreover, China’s Lithium Hydroxide market held the largest market share, and the Indian Lithium Hydroxide market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to extends their service/product lines, which will help the Lithium Hydroxide market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Lithium Hydroxide industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Lithium Hydroxide industry to benefit clients and increase the market sector. In recent years, the Lithium Hydroxide industry has offered some of the most significant advantages to medicine. Major players in the Lithium Hydroxide market, including SQM, FMC Lithium, Tianqi Lithium Corporation, MGX Minerals Inc., Nemaska Lithium, Galaxy Resources Ltd., and others, are attempting to increase market demand by investing in research and development operations.
The development, manufacture, and sale of lithium chemical products are the three main activities of Tianqi Lithium Corp (Tianqi Lithium), formerly known as Tianqi Lithium Industries, Inc. Lithium metal (Li), industrial-grade lithium hydroxide monohydrate (LiOH•H2O), battery-grade lithium carbonate (Li2CO3), battery-grade lithium hydroxide monohydrate (LiOH•H2O), and anhydrous lithium chloride (LiCl) are all included in its product line. Australia, China, and Hong Kong are all where the business is active. Chengdu City, Sichuan, China serves as the headquarters of Tianqi Lithium. In May 2022, Battery-grade lithium, also known as lithium hydroxide monohydrate (LHM), has finally been generated in Australia in large-scale quantities, according to Tianqi Lithium Energy Australia (TLEA). This is the first time that battery-grade lithium has been produced in Australia.
SQM is a multinational corporation that creates and manufactures a wide range of goods for a number of sectors that are crucial to the advancement of humanity, including technology, health, nutrition, and renewable energy. The company produces high-quality goods to fulfil the dynamic and changing requirements of the company's clients. The company holds a leading position in the lithium, potassium nitrate, iodine, and thermo-solar salts markets. In November 2022, Following recent agreements with Australian lithium developers, SK On, a leading manufacturer of electric vehicle (EV) batteries, today announced that it had signed a supply agreement with SQM of Chile for lithium hydroxide. This will strengthen the company's supply chain for crucial battery materials as it prepares for the U.S. Inflation Reduction Act (IRA).
May 2023: A lithium-processing facility will be built by Albemarle, a Tesla supplier, to enable the annual production of 2,4 million electric vehicles. 50,000 tonnes of battery-grade lithium hydroxide will be processed at a new plant by the American company Albemarle Corporation.
August 2022: In order to improve the development of battery raw materials and the recycling of old new electric vehicle ("NEV") batteries, Ganfeng Lithium announced that it had joined forces with GAC AION in a long-term strategic relationship.
June 2021: A 50 megawatt energy system connected to the National Grid's high-voltage transmission system was launched in the United Kingdom. This undertaking is a piece of the nation's USD 48.5 million Energy Superhub Oxford (ESO) strategy. Pivot Power is in charge of the project, which has the support of the British government.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 0.55 Billion |
| Market Size 2024 | USD 0.61 Billion |
| Market Size 2032 | USD 1.24 Billion |
| Compound Annual Growth Rate (CAGR) | 9.22% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application, End User, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | SQM, FMC Lithium, Tianqi Lithium Corporation, MGX Minerals Inc., Nemaska Lithium, Galaxy Resources Ltd |
| Key Market Opportunities | Growing electronics industry |
| Key Market Dynamics | Increase in adoption of electric vehicles |
Lithium Hydroxide Market Highlights:
Frequently Asked Questions (FAQ) :
The Lithium Hydroxide market size was valued at USD 0.55 Billion in 2023.
The market is projected to grow at a CAGR of 9.22% during the forecast period, 2024-2032.
North America had the largest share in the Lithium Hydroxide Market
The key players in the market are SQM, FMC Lithium, Tianqi Lithium Corporation, MGX Minerals Inc., Nemaska Lithium, Galaxy Resources Ltd.
The batteries category dominated the market in 2023.
The automotive had the largest share in the Lithium Hydroxide Market.
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