Lithium Market Size

Global Lithium Market Overview

Lithium Market Size was valued at USD 4.21 billion in 2023. The Lithium industry is projected to grow from USD 5.17 Billion in 2024 to USD 7.86 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.10% during the forecast period (2024 - 2032). The increasing use of batteries across various storage units such as smartphones portable electronic devices and electric vehicles are key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Lithium Market Trends

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  Increasing adoption of electric vehicles driving the market growth

  
  

The adoption of electric vehicles (EVs) is rapidly increasing ly, driven by government policies and incentives to reduce greenhouse gas emissions. As a result, the demand for lithium-ion batteries, which are used to power EVs, is also increasing. Lithium is a key component of these batteries, and its unique properties make it an ideal material for use in energy storage systems. Lithium-ion batteries are preferred for EVs due to their high energy density, long life span, and fast charging capabilities. The industry for EVs is expected to grow significantly in the coming years, with many major automakers investing heavily in the development of new EV models. As the adoption of EVs continues to increase, the demand for lithium is expected to grow as well, since it is an essential component of these batteries. According to some estimates, the demand for lithium for EV batteries could increase by over 200% by 2025.

The increasing adoption of EVs is also driving innovation in the lithium-ion battery industry, with companies investing in research and development to improve battery performance and reduce costs. This innovation is expected to further drive the growth of the EV market, and in turn, the demand for lithium. Thus, the increasing adoption of EVs is a major driver for the growth of the lithium market CAGR, and this trend is expected to continue in the coming years as the transition towards electric vehicles accelerates. Thus, driving the Lithium market revenue.

Furthermore, Energy storage systems are used to store energy generated by renewable sources like solar and wind, and to provide a stable and reliable supply of electricity. Lithium-ion batteries are the most commonly used technology for energy storage systems due to their high energy density, efficiency, and long life span. The demand for energy storage systems is driven by several factors, including the need to reduce greenhouse gas emissions, improve energy security, and increase the reliability of power supply. As the deployment of renewable energy systems continues to increase, so does the demand for energy storage systems, which in turn drives the demand for lithium.

In addition, the falling costs of energy storage systems and the increasing efficiency of lithium-ion batteries are making energy storage more economically viable for households and businesses, and are further driving the demand for lithium. Thus, the increasing adoption of energy storage systems is expected to be a significant driver for the growth of the lithium market, as the demand for lithium-ion batteries for energy storage is projected to grow rapidly in the coming years.

Lithium Market Segment Insights

Lithium Product Type Insights

Based on the product type, the  Lithium market segmentation includes lithium hydroxide, lithium carbonate, lithium chloride, butyllithium, lithium metal. The lithium carbonate segment dominated the market. This is due to the growing adoption of electric vehicles, energy storage systems, and other lithium-ion battery applications. As the demand for these applications continues to grow, the demand for lithium carbonate is expected to increase as well. However, it is worth noting that the demand for other forms of lithium, such as lithium hydroxide, is also growing rapidly, driven by the increasing use of high-nickel cathode chemistries in lithium-ion batteries.

Figure 1:  Lithium Market by Product Type, 2022 & 2032 (USD billion)                     

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Lithium Application Insights

Based on the application, the  Lithium market segmentation includes energy storage, greases, frits, glasses and ceramics, air treatment, and adhesives. The energy storage segment dominated the market. The demand for lithium in energy storage systems has been driven by the increasing deployment of renewable energy systems, such as solar and wind power, which require energy storage to provide a stable and reliable supply of electricity. Lithium-ion batteries are the most commonly used technology for energy storage systems due to their high energy density, efficiency, and long life span. As the adoption of renewable energy systems continues to increase, the demand for energy storage systems, and in turn, the demand for lithium, is expected to continue growing.

Lithium Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The Europe Lithium market will dominate due to the increasing demand for lithium-ion batteries, which are used in various applications including electric vehicles, energy storage systems, and portable electronics. Several European countries, such as Germany, France, and the UK, have set ambitious targets for the adoption of electric vehicles, and are providing incentives to support the development of a sustainable and low-carbon transportation sector. This has resulted in a surge in demand for lithium-ion batteries, and hence, the demand for lithium in Europe. Further, the German Lithium market held the largest market share, and the UK Lithium market was the fastest-growing market in the European region.

Further, the major countries studied in the market report are The U.S., Canada, German, the UK, France, Spain, Italy, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: LITHIUM MARKET SHARE BY REGION 2022 (%)                   

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America Lithium market is anticipated to develop at the fastest CAGR from 2024 to 2032 owing to the increasing demand for lithium-ion batteries, which are used in various applications including electric vehicles, energy storage systems, and portable electronics. The United States is the largest market for lithium in North America, and is expected to continue to dominate the market in the coming years. The country has set ambitious targets for the adoption of electric vehicles, and is providing incentives to support the development of a sustainable and low-carbon transportation sector. This has resulted in a surge in demand for lithium-ion batteries, and hence, the demand for lithium in North America.

The Asia-Pacific Lithium Market accounts for the second-largest market share. This is due to the increasing adoption of electric vehicles and energy storage systems, and the need to transition towards a low-carbon economy. Moreover, China’s Lithium market held the largest market share, and the Indian Lithium market was the fastest-growing market in the Asia-Pacific region.

Lithium Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Lithium market, grow even more. Market participants are also undertaking several strategic activities to increase their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Lithium industry must offer innovative products to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the  Lithium industry to benefit clients and increase the market sector. In recent years, the Lithium industry has offered some of the most significant advantages to the market. Major players in the Lithium market are Albemarle Corporation (US), SQM S.A. (Chile), Livent (US), Altura Mining (Australia), Orocobre Limited Pvt Ltd (Australia), Jiangxi Ganfeng Lithium Co. Ltd (China), Tianqi Lithium Industries Inc. (China), Critical Elements Corporation (Canada), Lithium Americas Corp. (Canada),  Sayona Mining Limited (Australia), and others, are attempting to increase.

Albemarle Corporation is a  specialty chemicals company that produces a wide range of products including lithium, bromine, and refining catalysts. The company is headquartered in Charlotte, North Carolina, and has operations in several countries around the world. For instance, in February 2021, Albemarle Corporation announced in February 2021 that it had signed an agreement with the US government to invest up to $50 million in the domestic production of critical minerals including lithium. The agreement is part of the US government's efforts to reduce dependence on foreign sources of critical minerals, which are essential for a range of applications including advanced electronics, renewable energy, and defense.

Altura Mining is an Australian mining company that is primarily focused on the production of lithium, which is used in the production of lithium-ion batteries for electric vehicles and energy storage systems. The company owns and operates the Altura Lithium Mine, which is located in Western Australia. For instance, in March 2021, Altura Mining announced that it had entered into a binding agreement with Chinese lithium producer, Shandong Ruifu Lithium Co., Ltd., to supply lithium concentrate for a period of three years. Under the agreement, Altura will supply up to 60,000 tonnes of lithium concentrate per year to Shandong Ruifu, which will be used in the production of lithium-ion batteries.

Key Companies in the Lithium market include

• Albemarle Corporation (US)


• SQM S.A. (Chile)


• Livent (US)


• Altura Mining (Australia)


• Orocobre Limited Pvt Ltd (Australia)


• Jiangxi Ganfeng Lithium Co. Ltd (China)


• Tianqi Lithium Industries Inc. (China)


• Critical Elements Corporation (Canada)


• Lithium Americas Corp. (Canada)


• Sayona Mining Limited (Australia)

Lithium Industry Developments

In February 2021, BMW announced that it had signed a long-term supply contract with Livent Corporation, a US-based producer of lithium. Under the agreement, Livent will supply BMW with sustainably produced lithium hydroxide for use in the production of BMW's electric vehicles.

In March 2021, Chinese battery manufacturer Contemporary Amperex Technology Co., Limited (CATL) announced that it had signed a strategic cooperation agreement with Chinese lithium producer, Jiangxi Special Electric Motor Co., Ltd. Under the agreement, the two companies will work together to develop and produce electric vehicle powertrains, as well as lithium-ion batteries.

In April 2021, Albemarle Corporation announced that it had formed a joint venture with Chinese lithium producer, Jiangxi Special Electric Motor Co., Ltd., to develop and produce lithium hydroxide in China. The joint venture, known as JLSB, will have a total capacity of 25,000 metric tons per year of lithium hydroxide.

Lithium Market Segmentation

Lithium Product Type Outlook

• Lithium Hydroxide


• Lithium Carbonate


• Lithium Chloride


• Butyllithium


• Lithium Metal

Lithium Application Outlook

• Energy Storage


• Greases


• Frits


• Glasses and Ceramics


• Air Treatment


• Adhesives

Lithium Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Europe
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America