Lithium Market Size, Share, Growth, and Industry Analysis, By Type (Anhydrous Lithium Hydroxide, Lithium Niobate and Lithium Tantalate), By Application (Industrial and Manufacturing) and Regional Forecast to 2032

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LITHIUM MARKET REPORT OVERVIEW

The Lithium Market Size was US$ 3483.5 Mn in 2023 and is projected to touch US$ 7816.51 Mn By 2032, Exhibiting a CAGR of 8.1% During the Forecast Period.

Lithium is a very often used substance, and for this reason, one has always associated it with properties and applications in contemporary society. Having been discovered as the lightest metal and least dense solid element, lithium shows more reactivity and for this reason, it becomes applicable in quite many industries. This is a product used in the production of lithium-ion batteries used in electric vehicles, portable devices, and stationary energy storage systems, among others. Although lithium boasts good energy density, low density, with impressive electrochemical properties, it's used in these applications and continues to be so due to these factors. It is also applied in making heat-resistant glass or ceramics, as a lubricant, or in some alloys.

Firstly, lithium in its free form does not exist in the earth's crust but in pegmatitic ores and brine. The main producers will therefore be Australia, Chile, Argentina, and China. This material is produced mainly by electrolysis from a mixture of lithium and potassium chloride. Lithium finds its utility in the medical field, more precisely as a treatment for manic depressive illness, which has to cope with manic periods, and bipolar affective disorders. However, lithium also belongs to those basic elements that comply with the demands of modern technology and thus contribute to the popularization of the field and its applications such as energy, electronic and the medical field.

COVID-19 Impact: Due to the pandemic the reduced consumer spending and supply chain disruptions restrained the market

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The disruptions in the lithium supply chains due to the pandemic effect, plus the squeezing of the consumers’ affluence also put a dent in demand for electric vehicles for a while. This was so because, during the pandemic period, the firms experienced supply chain disruptions and hence struggled to develop new products and services, which stifled the industries’ growth. Consumer scepticism and more critical economic conditions also influenced the trends and weak sales of EVs as customers delayed their purchases. However, with the gradual stabilization of the supply chain and economic recovery, the market of EVs is on the path to recovery. The market is recovering and is on a path of growth due to revived demand, incentives from the government and global trends for sustainability.

LATEST TRENDS

"Technological advancements in battery chemistry to boost the market"

Technological improvement in battery chemistry is expected to boost the market heavily as continuous improvements and innovations are aimed at different components of lithium-ion batteries. Researchers are focusing on enhancing the energy density, safety and life cycle of batteries which are important for various applications such as electric vehicles and energy storage systems employing renewables. Innovations include seeking substitute materials for lithium-ion batteries such as solid-state electrolytes which have properties that can make batteries safer and more effective. In the same way, more efforts are being made to slash costs and boost the recycling properties of batteries to promote sustainability. These developments do not only seek to cater to the increasing demand for high energy density batteries but also to overcome the drawbacks of existing technologies leading to application in a greater number of industries.

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LITHIUM MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into Anhydrous Lithium Hydroxide, Lithium Niobate and Lithium Tantalate.

• Anhydrous Lithium Hydroxide: Anhydrous lithium hydroxide is without odour and is crystalline, white and soluble in water as it is alkaline. Some of the applications of this lithium hydroxide include the production of lithium-ion batteries used in electric cars, as a thickening agent in grease and oils and air conditioners used in the removal of CO2 among others.

• Lithium Niobate: Lithium niobate is considered to be one of the most significant materials because different optical as well as electro-optical characteristics create the base of telecommunication. The use of applications in waveguides, modulators and filters ensures that the high-speed data transmission core in fiber optic systems and photonics is achieved. However, it has a large application in areas such as second harmonic generation and other nonlinear optical effects and SAW devices.

• Lithium Tantalate: Lithium tantalate is a versatile material that belongs to both piezoelectric/ferroelectric and optoelectronic categories, widely used in electronics and telecommunications. The material is commonly used in SAW devices including mobile phones, sensors, actuators and transducers amongst others and is frequently used in optical devices. The substrate of the integrated circuits further demonstrates its wide applicability in the field of electronics.

By Application

Based on application the global market can be categorized into Industrial and Manufacturing.

• Industrial: Lithium's versatility spans multiple industries. In metallurgical processes, unwanted elements from metals and their combination are removed and the removed components are recycled. Lithium hydroxide increases the viscosity of the lubricants whereas lithium chloride and bromide form concentrated brines for use in refrigeration and air conditioning. Lithium-ion batteries, with higher energy density and charging time, are used in powering material handling equipment and safety alarms.

• Manufacturing: Lithium enhances various manufacturing processes due to its unique properties. In alloys, it improves purity, corrosion resistance and strength, notably in lightweight lithium-aluminium alloys for aircraft. It also boosts glass and ceramic efficiency, reduces CO2 in concrete and is used in dyes, air filtration and cooling systems.

DRIVING FACTORS

"Increasing number of electric vehicles (EV) to expand the market"

There is increasing interest in the market for EVs which is fueled by governmental incentives and regulatory measures on carbon emissions, among others, together with available updates in battery technologies. An upward slope in the usage of EVs also causes an increase in the global lithium market growth as the demand is increasing and all lithium-ion batteries are made of the same. The governments in many countries are already working towards cleaner modes of transport, which in turn will increase EV sales and hence lithium. Advancements in batteries are also continually enhancing the capabilities as well as the application of lithium-ion batteries and EVs. This growing market not only demands lithium but also ideology towards the extraction and processing of lithium. These developments emphasize the role of lithium in the growth of the EV market and the shift to sustainable transport and clean power systems.

"Growth of the renewable energy sector to boost the market"

The growth of renewable energy is particularly boosting demand for lithium, as reliable storage solutions are critical in the sector. Solar and wind energy power plants produce power that is limited and usually to a specific time hence the need for an energy storage mechanism to store energy which could be used during high demands. Lithium-ion batteries are particularly critical in this regard given the density of energy, longevity of cycling and charging time. They are useful for storing excess power produced by renewable resources and help to balance out consumption and production during other times of the day. The requirement for storage capacity as a means of ultracapacitor for renewable sources of energy boosts protrusive to lithium needs, in turn encouraging both monetary nipples in lithium mining and research on better battery technology. This is because renewable energy sources are becoming increasingly prevalent and lithium-ion will find increasing use for energy storage purposes, so it's going to galvanize the market further.

RESTRAINING FACTORS

"Environmental concerns associated with extraction and processing hinder the market"

The lithium market is experiencing some limitations in terms of the environmental impacts of the extraction and purifying of lithium. Lithium mining involves massive consumption of water and therefore it can pollute the sources of water within the region and the environment in general. Another issue is habitat degradation which results from the destruction of ecosystems to facilitate the mining exercises and disturbance of wildlife. Further, the method of extraction and processing of lithium is laden with chemical procedures which are probably to pollute and generate hazardous waste. Such environmental effects have attracted the attention of regulatory agencies, environmental organizations and the public regarding the sustainability of lithium production. With increasing attention towards such matters, the industry must find solutions to these problems, by enhancing the practices and technologies in use. The success of the lithium market must be interconnected with environmentally friendly processes and policy decisions concerning the market.

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LITHIUM MARKET REGIONAL INSIGHTS

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

"North America region leads the market due to the high demand for energy in various industries and sectors"

North America holds a significant position in the global lithium market share, mainly owing to the region’s high product consumption across various industries. The automobile sector is a key mover with the increasing demand for lithium-ion batteries to power electric vehicles (EVs). Besides, the continuous pursuit of the increase in renewable energy systems such as solar and wind power throughout the region boosts the need for efficient energy storage Li-ion batteries. Smartphones, laptops and various other consumer electronics are another key driver for the lithium demand. North American manufacturers of battery materials as well as key mining houses have developed sound structures to harness this escalating demand. Such a combination of strong demand within a particular market and regional carrying capacity set North America in the markets.

KEY INDUSTRY PLAYERS

"Key industry players to undertake lithium recycling to propel the market"

Key industry players active in the lithium industry are gradually shifting their strategies to recycling lithium to propel the market and address environmental concerns. The increasing popularization of lithium-ion batteries makes it possible to see a need for rapid technologies that will help to recycle these batteries and extract the material they include. Companies and other organizations are investing more in revolutionary and sustainable approaches to recycling to maximize the conservation of resources and utilization of products. Such innovations are expected to assist in the recycling of lithium, cobalt, nickel and other materials, used in batteries, to be utilised anew to curtail the extraction of raw materials for batteries. When increasing the recycling rates and constructing the closed loop systems the issues, concerning supply chains, as well as the waste and environmental concerns are solved. This emphasis on recycling is quite pertinent to supporting a more stable long-run foundation for lithium and giving a boost to the batteries segment.

LIST OF MARKET PLAYERS PROFILED

• Albemarle (U.S.)

• FMC Corporation (U.S.)

• SQM (Chile)

• Orocobre (Australia)

INDUSTRIAL DEVELOPMENT

August 2024: The 9,500-crore rupees lithium-ion battery plant of Amara Raja near Hyderabad will be ready in six years. It would be built in three phases. The facility, coming up at Divitipalli in Mahbubnagar, has a 16-gigawatt capacity and will employ 3,500 people by the year 2030. Already, the first phase has become functional, and officers are hastening up the process of acquisition of land and infrastructure development to meet the requirements of the plant.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.