Lithium Market Sales Projected to Grow at 8.9% CAGR by 2032 Driven by Rising Applications in Consumer Electronics | Research by Market.us
The continuous advancement and development of rechargeable batteries for mobile phones, laptops, and electric vehicles are driving the demand, resulting in the growth of the lithium market. Furthermore, the market’s expansion has been impacted by the rising adoption of electric and hybrid vehicles and energy storage systems.
New York, April 18, 2023 (GLOBE NEWSWIRE) — The Lithium market had a value of USD 5.2 billion in 2022, and it is projected to increase by approximately USD 12.0 billion from 2023 to 2032, with an anticipated Compound Annual Growth Rate (CAGR) of 8.9%. This market is expected to record the highest CAGR among other markets. The rising number of electric vehicles and the electrification of vehicles is resulting in the rising demand for Lithium-ion Batteries and thus eventually driving the growth of the market globally.
The automotive application is projected to witness significant growth during the forecast period, which is mainly driven by the regulations imposed by the government regarding carbon emissions from vehicles. This eventually shifted the interest of the manufacturer towards producing EVs, which resulted in a rise in the demand for products related to Lithium. An additional booster to the market’s growth is the subsidies that the government is giving EVs.
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- By Product Outlook, the Carbonate Product segment generated the highest revenue in the Global Lithium Market share in 2022.
- By Application, the Consumer Electronic segment dominates the market and will grow significantly from 2023 to 2032.
- In 2022, Asia-Pacific Region dominated the market with the highest revenue share of 38.8%.
- North-America Region held the second position in revenue share in 2022.
The demand for lithium-ion products is rising by the continuous increase in the advancement and development of rechargeable batteries for mobile phones, laptops, and EVs driven by the growth in the lithium-ion battery market. The rise in the adoption of electric and hybrid vehicles and energy storage systems has greatly impacted the growth of the market. The key trend is the rising investments in Lithium mining and related technologies. Lithium mining is experiencing rapid growth as the demand for its battery application increases.
Factors affecting the growth of the Lithium industry
There are several factors that can affect the growth of the Lithium industry. Some of these factors include:
- Reduction in the cost of the batteries: The reduction in the cost of Lithium-Ion batteries will likely drive the growth of the Lithium market globally.
- Adoption of Electric Vehicles: The increase in the adoption of Electric vehicles will likely drive the growth of the market globally.
- Concern about global emission: The rise in pollution and the increased concern about the emission will result in people adopting the electric vehicle, eventually driving the growth of Lithium globally.
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Top Trends in Lithium Market
Increased demand for the product has eventually driven the growth in the Lithium market. Lithium-ion batteries are an essential component to keep the environment clean. In the Tesla Model S, around 12 kilograms of lithium is present, whereas the grid storage solutions can balance renewable energy. Batteries developed by IBM are free of cobalt, nickel, and various heavy metals, which helps avoid the environmental and humanitarian issues related to Lithium-ion technology. In terms of stability, safety, cost, life, and energy density, Electric vehicle manufacturing companies are continuously changing their preferences which is depending on the cathode characteristics. Electric vehicles are promoted as a source of efficient transportation choice based on the Life-cycle, as they emit less GHG than conventional vehicles.
The government imposed strict regulations that can limit the widespread use of ICE automobile engines and reduce carbon emissions, which are the major key driver for the growth of the lithium market. Due to the rise in the levels of carbon emissions in the atmosphere, lithium batteries are the advantages to be considered to eliminate pollution. Customers’ preferences have shifted toward emission techniques in recent years that are both more energy efficient and better for the environment due to the availability of pollution-efficient batteries and other applications. The government schemes for EV subsidies and additional booster technologies are the main drivers for the Lithium market growth.
The market in North America is likely to expand at a significant rate during the forecasted period. Most people are adopting cleaner energy sources due to stringent regulations, which drive market growth in the region. The use of geothermal, wind, solar, and other environmentally friendly and sustainable energy sources is encouraged by several schemes and funding programs arranged by the Environmental Protection Agency, also called EPA. The rising popularity and the adoption of solar panels enhance the rising demand for energy storage cells and batteries. The aerospace industry is electrifying helicopters, satellites, and aircraft with the help of Lithium-ion batteries. Product demand will rise as the adoption of Li-ion batteries increases more widely in space applications. Due to widespread product usage in the industrial and commercial sectors of power, chemical, consumer electronics, general manufacturing, industrial, and others, Asia Pacific is estimated to hold the largest global market share. The rapid development of the Asia Pacific region is seen due to different government initiatives and the increase in foreign investments in the global industrial sector. The simple availability of raw materials is one of the things that is thought to support the lithium market’s expansion.
Major companies like SQM S.A., Albemarle, Avalon Advanced Materials, FMC Corporation, and others are major key players in the global lithium market. To gain a competitive edge in the market, businesses are engaged in new product launches, capacity expansions, acquisitions, joint ventures, and partnerships. In addition, manufacturers are concentrating on research and development trends in order to produce batteries with high-efficiency performance and develop new ones.
Recent Development of the Lithium Market
- Ganfeng Lithium announced in June 2021 that it would increase its annual production of Li2CO3 by 600,000 tons equivalent due to the demand for the product used in electric vehicle batteries.
- GBRacing introduced its new zero-e sustainability truck with MG Li-Ion Batteries in June 2020. Solar power technology and MG LIB will power the trucks entirely.
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Scope of the Report
|Market Value (2022)||USD 5.2 billion|
|Market Size (2032)||USD 12 Billion|
|CAGR (from 2023 to 2032)||8.9%|
|Asia-Pacific Revenue Share||38.8%|
|North America Revenue Share||30.1%|
|Historic Period||2016 to 2022|
|Forecast Year||2023 to 2032|
The automotive industry’s rise in evolution over the last few years, along with technological advancement, will greatly impact the growth of the Lithium market. For the replacement of the conventional traveling ways with the advancement in technologies, the Electric Vehicles are specially designed which have low maintenance, smoother drive, low carbon emission, reduced sound of the engine, and high fuel economy. Electric vehicles help reduce air pollution in high populate areas and GHG emissions. The rise aids the electric vehicle market’s growth in demand for low-emission, high-performance, and fuel-efficient vehicles manufactured following government regulations towards vehicle emissions. These are the main factors to drive the growth of the Lithium market globally.
Due to pollution and water depletion, there is a social and environmental impact from Lithium extraction. Also, toxic chemicals are required to process Lithium. Due to this, the release of such toxic can harm the ecosystem, communities, and food production through Air emissions, spills, or leaching. Air pollution and soil are damaged due to the extraction of Lithium. Locals claimed in Argentina that the operation of the Li extraction had contaminated the streams used by livestock and humans. Also, there is a rising concern regarding the recycling of the product. The product’s recycling scope is very low as the material is highly flammable, reactive, and toxic.
The supply chain disruption due to the rising demand from APAC and SA, which are the lithium and other raw materials sources, will be experienced by the lithium Battery manufacturer. The production and development of the battery are crucial for the automotive industries in the U.S., which will dominate globally. Most lithium-ion cells manufactured are from the U.S., China, and Europe. The Biggest Opportunity for lithium-ion battery manufacturers is the electric vehicles, and the upcoming models of electric vehicles are planning to hit the market.
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Report Segmentation of the Lithium Market
Product Outlook Insight
By Product Outlook, the carbonate product segment holds the maximum market share globally and dominates the growth of the market. Stable inorganic, which is used to form other compounds such as LiOH and can also form pure metal, is called Lithium Carbonate. For the treatment of Bipolar disorder, Carbonates products are used. The compound has several applications in the construction sector for waterproofing slurries and can be used as an adhesive in batteries. Many automotive manufacturers are trying to adopt LiOH battery manufacturing which is expected to drive the market’s growth globally.
By Application, the consumer electronics segment holds the largest market share of the market growth globally and is expected to register the highest CAGR for the forecasted period. The segment’s growth rises as the sales of electronic devices which use Li-ion batteries rise. The market’s growth is mainly driven by characteristics such as large energy storage, low weights, and small size, thus positively impacting the market’s growth. Rechargeable lithium-polymer cells are used in laptops, cell phones, toys, etc. Graphite, lithium, and cobalt are the critical materials from which these batteries are manufactured, which need to be handled safely and with precautions.
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By Product Outlook
- Consumer Electronics
- Energy Storage
- Other End-user Industries
- North America
- The US
- Western Europe
- The UK
- Rest of Western Europe
- Eastern Europe
- The Czech Republic
- Rest of Eastern Europe
- South Korea
- Australia & New Zealand
- Rest of APAC
- Latin America
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- South Africa
- United Arab Emirates
- Rest of MEA
Key Market Players
- FMC Corporation
- Albemarle Corporation
- SQM S.A.
- Tianqi Lithium Corp.
- International Lithium Corp.
- LSC Lithium Corporation
- American Lithium Corp.
- Livent Corp.
- Avalon Advanced Materials Inc.
- Sayona Mining Limited
- Other Key Players
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