Home Mining Minerals & Metals Lithium Market Growth, Forecast & Analysis by 2031

Lithium Market

Lithium Market Size, Share & Trends Analysis Report By Product (Carbonate, Hydroxide, Chloride, Metal, Others), By Application (Batteries, Glass and Ceramics, Lubricant, Polymers, Metallurgy, Medical, Air Treatment, Others), By End-User (Automotive, Consumer Electronics, Industrial, Energy Storage, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRMM55579DR
Study Period 2019-2031 CAGR 22.1%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 38.2 Billion
Forecast Year 2031 Forecast Year Market Size USD 230.4 Billion
Largest Market Asia-Pacific Fastest Growing Market North America
The sample report only takes 30 secs to download, no need to wait longer.

Market Overview

The global lithium market size was valued at USD 38.2 billion in 2022 and is projected to reach a value of USD 230.4 billion by 2031, registering a CAGR of 22.1% during the forecast period (2023-2031). Vehicle electrification is expected to attract a considerable volume of lithium-ion batteries, driving lithium market growth.

Lithium is a delicate, silvery-white metal with the highest electrical conductivity of any metal. Though it has a wide range of applications throughout history, due to its reactivity, lightness, and ability to be recharged, it has recently become a vital component of lithium-ion ('Li-ion') batteries.

Rapid improvements in rechargeable batteries for computers, mobile phones, electric cars, and digital cameras, fueled by the expansion of the Lithium-ion Battery (LIB) market. Rising demand for lithium batteries, lubricants, glass and ceramics, and foundry will likely drive market expansion. The rising popularity of hybrid and electric vehicles, high-drain portable devices, and energy storage systems has boosted the lithium market share.

Market Dynamics

Global Lithium Market Drivers:

Electric Vehicle Growth

The growth of the electric car market is a major driver of lithium demand. Because lithium-ion batteries are a critical component in electric vehicles, lithium is important in the shift to clean and sustainable transportation. According to the International Energy Agency (IEA), global electric car sales will exceed 10 million by 2022. This was a record-breaking year for electric vehicles, accounting for 14% of all new automobile sales. This represents an increase from 9% in 2021 and less than 5% in 2020. China has the world's largest market for electric vehicles (EVs). China will account for 60% of global EV sales and more than half of all-electric vehicles on the road by 2022. China accounted for 55% of global EV sales in the first half of 2023.

As one of the first electric vehicle manufacturers, Tesla has greatly impacted lithium consumption. The company's focus on electric mobility and energy storage has influenced the EV market. As the automobile industry continues to electrify, demand for lithium-ion batteries will remain a crucial driver driving lithium market dynamics. As a result, global lithium production is predicted to reach 1.5 million tons by 2030. The predicted increase in EV adoption contributes to the favorable outlook of the lithium market trend.

Global Lithium Market Restraints:

Price Volatility

Price volatility in the lithium market has been brought on by variables such as supply and demand dynamics, world events, and market speculation. Lithium prices can fluctuate quickly, presenting problems for producers and consumers. Lithium prices are erratic because lithium is a specialist commodity with limited production. Lithium prices are closely related to supply and demand. Price increases may occur during high demand, particularly in the electric vehicle industry. On the other hand, price corrections may be caused by worries about an excess supply or a slower rate of market acceptance.

Furthermore, the lithium market is vulnerable to investor emotion and conjecture. Short-term price swings might be caused by news, technological advancements, or geopolitical events influencing investor perceptions. In 2023, there has been a great deal of volatility in lithium prices. They have dramatically retreated from the approximately 500% spike in the previous two years. Lithium has dropped by 72.95%, or 379,000 CNY/T, since the start of 2023. In December 2022, lithium hit an all-time high of 5750000. 

Thus, price volatility may affect project developments and investment choices in the lithium industry. Price downturns may cause delays or reevaluations, whereas price booms may encourage new initiatives.

Global Lithium Market Opportunity:

Technological Advancement

Improvements in lithium-ion battery chemistry and other ongoing research and development in battery technology present chances to boost safety, energy density, and performance. Solid-state batteries are one example of a novel battery technology that could expand the market. Research and development expenditures for cutting-edge battery technology have been rising. Innovations can create new opportunities in the lithium industry as they happen. Between 2022 and 2030, the lithium-ion battery value chain is predicted to expand by more than 30% yearly. This is brought on by the growing popularity of sustainable energy technology, such as electric vehicles. Research and battery development is receiving significant funding from large corporations and academic organizations.

For instance, companies like LG Chem, Panasonic, and Tesla have invested much money in developing battery technologies. Panasonic provides Tesla with thousands of tiny lithium-ion batteries. Previously utilized mostly in consumer electronics, Tesla was the first manufacturer to deploy these batteries. Higher energy density has been made possible by developments in battery chemistry, enabling batteries to store more energy in the same or smaller containers. This is especially important for renewable energy storage, portable electronics, and electric cars. As a result, businesses that spend R&D to increase battery performance are well-positioned to profit from the changing market for energy storage products.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global lithium market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific is the most significant global Lithium market shareholder and is estimated to grow at a CAGR of 22.5% over the forecast period. The Asian market is expanding due to widespread product use in the commercial and industrial sectors, such as power, consumer electronics, chemical, industrial, general manufacturing, etc. Asia-Pacific is quickly developing due to several government initiatives and rising international investments in the industry. One element promoting the market's expansion is the accessibility of raw materials.

Furthermore, the rising number of businesses in developing nations like China, Taiwan, Japan, South Korea, and India that produce lithium and its derivatives is driving demand for the substance. Batteries, capacitors, and fuel cells are just a few of the electrical components China produces in vast quantities. In 2022, China accounted for around 77% of the worldwide battery manufacturing capacity with 0.9 terawatt-hours of production output. Furthermore, China processes 42% of copper processing units, 74% of cobalt, 100% of graphite, and 65% of the world's lithium. 70% of lithium-ion battery manufacture worldwide is produced in China. Advancements in fuel cell technologies for electric vehicles have helped the government's regulations to lessen pollution caused by burning gasoline and petrochemicals.

North America is anticipated to exhibit a CAGR of 22.3% over the forecast period. Due to strict regulations, there is a surge in regional growth as greener energy sources are adopted more frequently. Several initiatives and financial incentives offered by the Environmental Protection Agency (EPA) encourage the use of renewable energy sources, such as solar, wind, and geothermal. Additionally, the EPA announced a USD 7 billion grant competition to expand low-income households' access to clean solar energy. A significant demand for energy-storing cells and batteries has resulted from the growing use of solar panels.

For example, NASA and other contractor partnerships replaced the aircraft's gas-powered engines with LIB packs created by NASA as part of a technology transfer effort. These elements will support the market's expansion in North America.

Europe has experienced substantial industrial expansion Over the past ten years. Growing R&D spending by the European Union in the automotive, ICT, and healthcare industries is the primary driver of market expansion. Battery electric vehicles (BEVs) made up 12.1% of the 9.1 million vehicles sold in EU markets in 2022, according to the European Automobile Manufacturers Association (ACEA). Comparing this to 2021, there was a 3.0 percentage point improvement. With less than 1% of the world's lithium supply coming from there, Europe relies heavily on imports. The European battery market is anticipated to grow to USD 43.84 billion in the following five years. 

Latin America has about 70% of the world's lithium reserves. Rechargeable batteries for electric vehicles and cell phones are made of this metal. The metal is cheap and of good quality and produced in Chile. Due to the region's highly concentrated market, Chile's government is opening its doors to new competitors.

The Middle Eastern and African regions have significantly grown. Based on rising investment in green energy and tourism, Saudi Arabia is likely to drive significant market growth in the Middle East and Africa, according to lithium market insights. For example, the Saudi government announced plans to build an integrated Battery Chemicals Complex in Yanbu Industrial City, valued at USD 899 million, to expand the market in the region and supply renewable energy resources. September 2022, new car sales numbers show a 10.8% year-over-year gain, according to The South African Association of Automobile Manufacturers (NAAMSA). Cars and auto parts exports account for 4.3% of South Africa's GDP, which the automotive sector contributes.

Report Scope

Report Metric Details
By Product
  1. Carbonate
  2. Hydroxide
  3. Chloride
  4. Metal
  5. Others
By Application
  1. Batteries
  2. Glass and Ceramics
  3. Lubricant
  4. Polymers
  5. Metallurgy
  6. Medical
  7. Air Treatment
  8. Others
By End-User
  1. Automotive
  2. Consumer Electronics
  3. Industrial
  4. Energy Storage
  5. Others
Company Profiles Albemarle Corporation Ganfeng Lithium Co., Ltd. SQM S.A. Tianqi Lithium Corporation Livent Corporation Lithium Americas Corp Pilbara Minerals Orocobre Limited Pty Ltd Mineral Resources
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
Need a Custom Report?

We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports

Segmental Analysis

The global lithium market is segmented based on product, application, end-user, and region.

The product is further segmented into Carbonate, Hydroxide, Chloride, and Metal.

Carbonate accounts for the largest share.

With the chemical formula Li2CO3, lithium carbonate is a salt of lithium. It is a crucial precursor in lithium-ion batteries and is a white, crystalline powder. Cathodes for batteries are frequently made using lithium carbonate. In terms of volume, the carbonate product category led the market and held the biggest share of over 60% in 2022. The most stable inorganic compound is lithium carbonate (Li2CO3), which creates other compounds like LiOH and even pure metal. Bipolar disorder is another condition that is treated using carbonate products. 

Another chemical made of lithium is lithium hydroxide (LiOH). It's an inorganic chemical soluble in water. The hydroxide market, anticipated to grow fastest throughout the projection period, is in high demand due to battery advancements. Petroleum-based hard rocks and brines are among the many materials used in its production. Applications for lithium hydroxide include manufacturing lithium-ion batteries and specific lithium greases. High-nickel lithium-ion batteries use lithium hydroxide as its cathode material. The growing demand for nickel-rich cathode materials has led to a rise in the need for lithium hydroxide.

The market can be bifurcated by application into batteries, glass and ceramics, Lubricants, polymers, metallurgy, medical, and air treatment.

Batteries are the most common application in the market.

Rechargeable batteries, particularly lithium-ion batteries, require lithium as a necessary component. These batteries are frequently utilized in renewable energy storage systems, electric cars, and electronic devices. Among lithium's most important and quickly expanding applications is the battery market. Global adoption of electric vehicles and growing demand for energy storage solutions are the main drivers of lithium demand in batteries. 

In 2022, the batteries sector held a significant lithium market share, and this dominance is expected to persist during the forecast period. For the cathode, electrolyte, and anode, LIBs are employed in a variety of active material combinations. Either primary or secondary batteries are present. Electronic devices such as watches, laptops, calculators, cameras, and games require primary batteries. On the other hand, video cameras, cordless tools, electric cars, tablets, phones, and portable laptops all use secondary batteries.

In the glass and ceramics sector, lithium compounds, such as lithium carbonate and lithium oxide, are used to improve characteristics like thermal resistance and stability. Glass for electrical gadgets, cookware, and ovenware are among the products made with lithium, which is used in specialty glassware and ceramics.

Based on end-users, the market is sub-segmented into Automotive, Consumer Electronics, Industrial, and Energy Storage.

Automotive is a significant contributor to the market.

Lithium is heavily consumed by the automotive industry, mainly to manufacture lithium-ion batteries for hybrid and electric vehicles (EVs). Although the use of fossil fuels still dominates the automotive sector, alternative energy sources like lithium-ion batteries are starting to take center stage. In the upcoming years, the demand for products will be driven by the growing need for electric vehicles and the move toward renewable energy. For example, the Indian government introduced FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) along with national and state-level regulations to set a target of 30% electric cars by 2030. The government also established requirements for 34 GW and 136 GW of battery storage to make the country a major user of LIB and add 450 GW of renewable sources.

Lithium-ion batteries find widespread application in consumer electronics such as digital cameras, wearable technology, tablets, computers, and smartphones. The market is expected to expand due to the rising sales of Li-ion battery-powered electronics such as speakers, MP3 players, laptops, cameras, mobile phones, and portable radios. Features like lightweight, high energy storage, and compact size drive the need for batteries and boost the market's growth. Smoke alarms, webcams, handheld games, and remote controllers all require single-use, non-rechargeable Li-ion batteries.

Market Size By Product

Market Size By Product
  • Carbonate
  • Hydroxide
  • Chloride
  • Metal
  • Others
  • Recent Developments

    • July 2023- SQM announced a substantial long-term partnership with LG Energy Solution, cementing their relationship to help with global decarbonization efforts. From 2023 to 2029, under this new agreement, SQM will supply LG Energy Solution with over 100,000 metric tons of battery-grade lithium carbonate and lithium hydroxide.
    • November 2023- BASF and SK On have agreed to investigate collaborative potential worldwide in lithium-ion batteries.

    Top Key Players

    Lithium Market Share of Key Players

    Lithium Market Share of Key Players
    Albemarle Corporation Ganfeng Lithium Co., Ltd. SQM S.A. Tianqi Lithium Corporation Livent Corporation Lithium Americas Corp Pilbara Minerals Orocobre Limited Pty Ltd Mineral Resources Others

    Frequently Asked Questions (FAQs)

    How big is the Lithium Market?
    The global lithium market size was valued at USD 38.2 billion in 2022 and is projected to reach a value of USD 230.4 billion by 2031, registering a CAGR of 22.1% during the forecast period (2023-2031).
    Asia Pacific dominates the Lithium Market.
    Electric Vehicle Growth drive the global market.
    The key players in the global market include Albemarle Corporation , Ganfeng Lithium Co., Ltd. , SQM S.A. , Tianqi Lithium Corporation , Livent Corporation , Lithium Americas Corp , Pilbara Minerals , Orocobre Limited Pty Ltd , Mineral Resources.
    The global market is segmented by product, application and end users.

    We are featured on :