According to Fortune Business Insights, The global lithium market size was valued at USD 22.36 billion in 2023. The market is projected to grow from USD 13.90 billion in 2024 to USD 55.52 billion by 2032 at a CAGR of 18.9% during the 2024-2032 forecast period. Asia Pacific dominated the lithium market with a market share of 61.27% in 2023.
Lithium is a soft metal that is extremely reactive and is known to be the lightest of all metals. It is utilized to produce robust, lightweight alloys in combination with aluminum and magnesium. Lithium-ion batteries are preferred due to their high energy density, which makes them suitable for compact devices. Its vital role in clean energy technologies, such as electric vehicles and solar power storage, is expected to drive global market growth in the coming years. Growing demand for rechargeable batteries in laptops and mobile phones and rapid advancements in electric vehicles are driving the demand for lithium ion batteries (LIB). Apart from lithium ion batteries, it is utilized in many industries, including lubricants, glass & ceramics, and foundry.
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LIST OF KEY COMPANIES PROFILED IN THE REPORT
Albemarle Corporation (U.S.)
SQM S.A. (Chile)
Tianqi Lithium (China)
International Lithium Corp. (Canada)
LSC Lithium Corporation (Argentina)
FMC Corporation (U.S.)
American Lithium Corp. (U.S.)
Livent (U.S.)
Avalon Advanced Materials (Canada)
Sayona Mining Limited (Australia)
Segmentation:
Widespread Adoption of Carbonate in Automotive Sector to Drive Segment Growth
Based on product, the market is divided into carbonate, hydroxide, chloride, metal, and others. Carbonate accounted for the leading share of the global market in 2023, owing to its widespread adoption in the automotive sector driven by the surge in electric vehicle sales.
Batteries Segment Captured Dominant Share Owing to Growing Electric Vehicle Sales
Based on application, the market is categorized into batteries, glass & ceramics, lubricant, polymers, metallurgy, medical, air treatment, and others. The batteries segment captured the dominant global lithium market share in 2023 and is expected to maintain its leadership in the years ahead. Growing electric vehicle sales, fueled by increasing disposable income and changing user preferences, are anticipated to propel the lithium-ion battery segment's growth.
Heavy Demand for Electric Vehicles (EVs) to Fuel Automotive Industry Segment Growth
Based on end-user, the market is segregated into automotive, consumer electronics, industrial, energy storage, and others. The automotive sector led the global market, influenced by the heavy demand for Electric Vehicles (EVs) and the increasing preference for clean energy, which is anticipated to fuel product demand during the forecast period.
With respect to region, the market covers North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
Report Coverage:
The report has conducted a detailed study of the market and highlighted several critical areas, such as leading products, end-users, applications, and key market players. It has also focused on the latest market trends and key industry developments. Apart from the aforementioned factors, the report has given information on many other factors that have helped the market grow.
Drivers and Restraints:
Rising Demand for EVs and LiBs to Boost Market Growth
The automotive sector is rapidly evolving, which affects the Electric Vehicle (EV) market. EVs are created to substitute traditional cars due to advancements in technology, reduced carbon emissions, and decreased maintenance expenses. Some advantages of EVs include the convenience of home charging, quieter operation, and improved fuel efficiency. Indeed, EVs generate 40% less CO2 than internal combustion vehicles throughout their lifespan. LiBs are commonly utilized in fully electric and plug-in hybrid vehicles since they are economically viable and possess a high energy density. The rising demand for EVs and LiBs is expected to boost lithium market growth in the coming years.
However, lithium extraction can have large negative effects on society and the environment. This is mainly because it can lead to water being used up and polluted, which limits market growth.
Regional Insights:
Increased Product Adoption by Various Industries to Drive Asia Pacific Market Growth
Asia Pacific market is expected to account for a maximum share of global sales revenue. The growth of the region is due to increasing product use in various industries such as automotive, power, consumer electronics, and chemical, combined with the strong presence of lithium producers in developing nations such as China, Japan, and India.
The North American region is set to witness notable growth in the coming years. The increasing preference for clean energy driven by strict regulatory standards is propelling market growth in the region. Additionally, the surge in solar panel adoption has stimulated a considerable demand for cells and batteries for energy storage, driving further growth in the region.
Competitive Landscape:
Leading Companies to Incorporate Organic and Inorganic Expansion Strategies to Maintain Their Market Shares
The global market is characterized by consolidation, with top companies holding dominant shares. The leading companies operating in this industry include SQM, Albermale Corporation, Tianqi Lithium Corporation, and Arcadium Lithium Co, Ltd. These firms are increasing their focus on incorporating organic and inorganic expansion strategies to maintain their market shares.
Information Source: https://www.fortunebusinessinsights.com/lithium-market-104052
KEY INDUSTRY DEVELOPMENTS
August 2024: Arcadium Lithium acquired Li-Metal’s lithium metal business for USD 11 million to enhance production capabilities and sustainability. This acquisition includes intellectual property and facilities, supporting demand for advanced battery materials and enabling innovative lithium metal production methods.
January 2023: Ganfeng Lithium Co., Ltd. announced an investment of USD 2.14 billion in two new battery factories to increase its production capacities by 34 GWh. This facility will add to manufacturing, which is expected to grow to around 100 GWh annually.