According to the latest research report titled, “Lithium Market (2024 – 2029)” by Mordor Intelligence, the Lithium Market is estimated at 0.71 million LCE tons in 2024 and growing at a CAGR of 19.57% during the forecast period.
In the short term, the lithium market is being propelled by heightened demand for electric vehicles and the expanding usage of portable consumer electronics. However, concerns are mounting regarding the demand-supply imbalance in the lithium market, potentially impeding growth. Nonetheless, the increasing adoption of smart grid electricity presents a significant opportunity for the global lithium market in the forecast period. Asia-Pacific emerges as the dominant force in the global market, with China, South Korea, and Japan spearheading substantial consumption.
Report Summary
- Market Size (2024): 0.71 million LCE tons
- Market Size (2029): 1.72 million LCE tons
- CAGR (2024 – 2029): 19.57%
- Study Period: (2019-2029)
- Report Scope: Market Dynamics, Revenue Forecast & Segmentation, Competitive Landscape & Recent Developments, Market Growth, Future Opportunities, and Trends
- Market Drivers:
- Accelerating Demand for Electric Vehicles, Increasing Usage and Demand by Portable Consumer Electronics and Other Drivers
Which are the Top Companies in the Lithium Market?
The global lithium market is consolidated in nature, with the top five players holding more than 80% of the global production output.
Prominent players in the Lithium Market:
- Albemarle Corporation
- Allkem Limited
- Ganfeng Lithium Co. Ltd
- Lithium Australia NL
- Livent
- Mineral Resources
- Morella Corporation Limited
- Sichuan Yahua Industrial Group Co. Ltd
- SQM SA
- Tianqi Lithium
- Avalon Advanced Materials Inc.
- Pilbara Minerals
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Key Highlights from the Lithium Market Report
1. Power Surge: Battery Application Segment Poised to Lead Market Domination
- Lithium is majorly used to produce lithium batteries. The battery application segment accounted for the largest share of the global lithium market.
- Lithium batteries can be categorized into two segments, namely, disposable and rechargeable. Disposable lithium batteries use lithium in the metallic form as an anode.
- These batteries find applications in critical devices, such as pacemakers and other electronic medical devices intended for long-term use.
- Rechargeable lithium batteries are of two types, i.e., lithium-ion batteries and lithium-ion polymer batteries. Li-ion battery is packed in a rigid case, whereas the Li-po battery comes in a flexible polymer casing.
- In the case of a Li-ion battery, the metal lithium forms the cathode, and it is the chemical reactions of lithium upon contact with the electrolyte that makes these batteries characteristic.
- Lithium-ion batteries are employed in several applications, including telecommunication devices and consumer electronics.
- The light weight of lithium-ion batteries, coupled with their high energy density and rechargeability, makes them a good fit for portable electronics.
- Due to their energy density and lack of ‘memory effect,’ lithium-ion and lithium-polymer rechargeable batteries are the most efficient power sources for cell phones, laptops, and other portable electronic devices.
- Li-ion batteries are gaining more popularity compared to other battery types, majorly due to their favorable capacity-to-weight ratio. The other factors that contribute to its adoption include its better performance (long life and low maintenance) and decreasing price.
All the above-said factors are expected to increase the demand for lithium in the battery application segment.
2. Asia-Pacific Powerhouse: Dominance in the Market Forecast
Asia-Pacific emerges as the epicenter for lithium consumption, notably driven by surging demand from key players such as China, South Korea, and Japan. With China spearheading the charge, the region anticipates a significant boost in electric vehicle (EV) production, targeting a remarkable 20% penetration rate over the next five years. This surge in EV demand is poised to catalyze a proportional increase in battery production and consumption. Notably, Chinese giant CATL already commands a staggering 30% share of the global EV battery market, underlining China’s dominance in the sector.
Moreover, China’s stronghold extends beyond manufacturing, with its refineries supplying a substantial 85% of the world’s battery-grade cobalt, crucial for enhancing lithium-ion battery stability. Bolstering this dominance is China’s ambitious National Blueprint for Lithium Batteries, forecasting a staggering 1,811 GWh of lithium cell production by 2025. With China at the forefront, the region stands as the largest global EV market, dictating the supply chain for lithium-ion battery manufacture, from mineral extraction to processing.
What are the Latest Developments in the Lithium Market?
- In May 2022: Mineral Resources marked a significant milestone in its lithium growth strategy with the first new spodumene concentrate delivered at the Wodgina Lithium Project in the Pilbara region of Western Australia.
- April 2022: SQM SA planned to invest USD 900 million in 2022 as part of its plan to increase lithium carbonate and hydroxide production capacity. The company has plans to enhance lithium carbonate production capacity to 180,000 metric ton per annum in the future. Furthermore, the capacity is likely to reach 210,000 tons by early 2023.
Mordor Intelligence Report on the Lithium Market segments the market based on product type, application, and geography:
- By Type (Market Size & Forecast based on Value (USD trillion), 2024-2029)
- Metal
- Compound
- Carbonate
- Chloride
- Hydroxide
- Alloy
- By Application (Market Size & Forecast based on Value (USD trillion), 2024-2029)
- Battery
- Grease
- Air Treatment
- Pharmaceuticals
- Glass/Ceramic (Including Frits)
- Polymer
- Other Applications
- By End-user Industry (Market Size & Forecast based on Value (USD trillion), 2024-2029)
- Industrial
- Consumer Electronics
- Energy Storage
- Medical
- Automotive
- Other End-user Industries
- By Geography (Market Size & Forecast based on Value (USD trillion), 2024-2029)
- Production and Reverse Analysis
- Australia
- Chile
- China
- Argentina
- Zimbabwe
- United States
- Other Regions
- Consumption Analysis
- Asia-pacific
- China
- India
- Japan
- South Korea
- Australia & New Zealand
- Rest of Asia-Pacific
- North America
- United States
- Canada
- Mexico
- Europe
- United Kingdom
- Germany
- France
- Italy
- Spain
- Nordic Countries
- Rest of Europe
- South America
- Brazil
- Argentina
- Rest of South America
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of Middle East and Africa
In a nutshell, the Mordor Intelligence Market Research Report provides in-depth market insight to industry players, investors, researchers, consultants, and business strategists, looking for comprehensive details on the lithium industry. Get a glance at the Lithium Market Report (2024 – 2029)
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