Global Lithium Market is segmented By Type (Alloys, Metal, Chloride, Carbonate, Hydroxide, Concentrate), By Application (Batteries, Lubricants, Automotive Parts, Aluminum Smelting & Alloys, Medical, Glass and Glass Ceramics, Air Treatment, Metallurgy, Polymers, Others), By End User (Consumer Electronics, Electric Vehicles, Energy Storage, Industrial, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031
Lithium Market Size
Global Lithium Market reached US$ 9.3 billion in 2023 and is expected to reach US$ 38.8 billion by 2031, growing with a CAGR of 19.5% during the forecast period 2024-2031.
The electric vehicle is a major driver for the growth of lithium in the market. Lithium-ion batteries are essential for EVs which provide Medical and longer driving ranges. With the growing focus on sustainability and the transition towards cleaner transportation, the demand for EVs is expected to rise, thus boosting the demand for lithium.
Governments in Asia-Pacific actively supporting the lithium industry and heavily investing in research and development, Infrastructure development and financial investment. China experienced significant growth in EV Automotive (EV). For instance, On 4 May 2023, China alone sold around 6.8 million EVs and marked the world's largest market for EVs for a straight eighth consecutive year. The growth has been driven because of government support, generous subsidies, tax breaks and other policy incentives aimed at both stimulating the supply of EVs and creating demand for them.
Lithium is a major component of EV batteries and plays a vital role in China's EV industry. Companies in China majorly focus on the development and production of lithium-ion batteries, that include LFP batteries, which have contributed to the growth of the EV market. China's control over critical battery materials has also given it a competitive advantage in the global lithium market.
Market Summary
| Metrics | Details |
| CAGR | 19.5% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Type, Application, End-User and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
For more details on this report - Request for Sample
Market Dynamics
Rise in Electric Vehicle (EV) Demand
The escalating demand for electric vehicles (EVs) is propelling the lithium market forward. Lithium-ion batteries, known for their high energy density, enable the storage of more energy in a compact and lightweight package, surpassing other battery technologies. The characteristic results in extended driving ranges and enhanced performance for EVs. Moreover, lithium batteries exhibit notable charge-discharge capabilities, facilitating quicker charging times and ultimately reducing the overall charging requirements for electric vehicles.
For instance, the announcement made by Luxembourg-based Livista on June 18, 2023. Livista revealed plans to establish a dedicated lithium refinery, specifically tailored for electric vehicle batteries. The facility aims to refine 40,000 Tons of lithium, a crucial component in lithium-ion batteries. The strategic initiative is a response to the surging demand for EVs and the imperative for a stable lithium supply. Livista's endeavor aligns with the goal of contributing to the advancement of sustainable and environmentally friendly mobility solutions, ensuring a steadfast source of lithium for the ever-growing electric vehicle market.
Government Initiatives
Governments globally are actively championing the widespread adoption of electric vehicles (EVs) as a pivotal strategy to curb greenhouse gas emissions and address climate change concerns. Lithium-ion batteries stand out as the preferred choice for EVs, given their high energy density and longer lifespan compared to alternative battery technologies. Government initiatives are geared towards securing a stable supply of lithium, thus ensuring a consistent availability of materials crucial for battery production.
A noteworthy example is the initiative taken on April 17, 2023. Lithium, a key component in batteries extensively used in cell phones, computers and automotive applications, plays a central role. The government's launch of the Faster Adoption and Manufacturing of Automotive (FAME) program underscores its commitment to fostering the adoption of clean energy vehicles employing lithium batteries. In a significant budget allocation in 2023, the government earmarked INR 51.72 billion for FAME, providing incentives to accelerate the transition towards cleaner energy and bolstering the lithium market in the automotive sector.
Environmental Impact of Lithium Extraction and Battery Disposal
The extraction and processing of lithium carry significant environmental consequences. Conventional mining practices lead to habitat destruction, water pollution and the emission of greenhouse gases. Moreover, the disposal of lithium-ion batteries at the end of their life cycle presents environmental challenges when not managed properly.
Despite the high energy density of lithium-ion batteries compared to alternative technologies, there are inherent limitations in their medical capabilities. Researchers are actively engaged in developing new battery technologies to address these constraints. However, this pursuit may potentially result in shorter driving ranges for automotive applications. Balancing the advantages and environmental drawbacks of lithium-ion batteries remains a key focus in the ongoing efforts to develop sustainable energy storage solutions.
Market Segment Analysis
The global lithium market is segmented based on type, application, end-user and region.
Lithium-ion Batteries in Automotive Industry
The lithium market in the automotive industry is experiencing significant growth and transformation in recent years, driven primarily by the rapid expansion of electric vehicles (EVs). Lithium-ion batteries are the cornerstone of EV technology, offering high energy density and rechargeable capabilities crucial for powering electric cars. As governments globally implement stricter emission regulations and promote sustainable transportation solutions, the demand for EVs continues to rise, propelling the lithium market forward. Moreover, advancements in battery technology and manufacturing processes have led to cost reductions and improved performance, making EVs increasingly competitive with traditional internal combustion engine vehicles. The growing demand for lithium-ion batteries has resulted in significant investments in lithium mining and processing infrastructure to meet the needs of the automotive industry.
Market Geographical Share
Advancement in Technology Boost Growth of Lithium in Asia-Pacific
Asia-Pacific has witnessed significant advancements in lithium battery technology, which includes improvements in energy density, safety and charging capabilities. The advancements have made lithium-ion batteries more reliable and efficient, these factors boost the growth of the lithium market.
Naval Submarine Academy in Qingdao conducted a study, for instance, on 29 Oct 2022, in which it describes, China's conventional submarine fleet could soon be powered by lithium-ion batteries, similar to those used in electric cars. The researchers claim that this change could more than double the underwater endurance of submarines, provide faster acceleration and create more space for weapons. The lead-acid batteries currently used in these submarines have limitations such as low Medical capacity, slow charging, weak power output and toxic gas leaks.
Market Competitive Landscape
The major global players include Albemarle, Altura Mining Limited, Avalon Advanced Materials Inc, FMC, Critical Elements Corporation, Galaxy Resources Limited, Jiangxi Ganfeng Lithium Co. Ltd, Lithium Americas, Sichuan Tianqi Lithium Industries, SQM.
COVID-19 Impact Analysis
In the COVID-19 circumstance, it is predicted that the lithium-ion battery market experienced slower development since the pandemic is limiting the supply of batteries and other components to the industry and big factories as a result of the serious disruptions it is causing to the lithium businesses and the global economy. The supply chain for the battery sector has been influenced by the COVID scenario.
The COVID-19 issue has highlighted the problems like the region's excessive reliance, especially on China, in particular for essential raw materials. The suspension of operations in China and other Asia-Pacific nations has a significant impact on battery makers in US, Germany and Australia. Additionally, constrained manufacturing has caused a significant drop in company inputs.
Russia-Ukraine War Impact
Lithium supply disruption due to Russia and Ukraine war. Both have significant lithium reserves, with Russia being one of the world's top lithium producers. There might be a shortage of lithium on the market if the conflict continues it will effect production operations. Due to the shortage, lithium may become more expensive and less readily available for battery manufacturing.
Disruptions to the lithium battery supply chains could result from the conflict. Many international businesses rely on the facilities in Ukraine in particular, which is a significant hub for the production of batteries. The manufacture and delivery of lithium batteries may be affected if the conflict damages infrastructure or disrupts transportation, which might result in delays and possible shortages.
Key Developments
- On 28 Feb 2022, Luminous Power Technologies introduces the "Li-ON" series an integrated inverter with Lithium-ion batteries. The new series embraces the concept of an integrated approach to science and technology for a sustainable future. The Li-ON series offers a compact design, enhanced safety features, high efficiency and excellent performance with no maintenance requirements.
- On 13 Mar 2023, MontaVista Energy Technologies Corporation introduced a new line of Lithium Metal Battery (LMB) products. The batteries, known as the METARY P series, offer both high power and high specific energy. In-flight tests conducted by various drone developers, commercial drones equipped with Montavista's LMBs demonstrated 60-80% longer flight times compared to those using traditional lithium-ion batteries.
- On 20 Mar 2023, Mitsubishi Logisnext Americas group introduced the Triathlon Lithium-ion battery and charger solutions for UniCarriers product line of forklifts. The battery solutions will be available as a factory-installed option on most UniCarriers Class I and III forklift models in North and Latin America.
Why Purchase the Report?
- To visualize the global lithium market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of lithium market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The global lithium market report would provide approximately 61 tables, 69 figures and 187 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
