Global Lithium Market – Industry Trends and Forecast to 2029

Global Lithium Market, By Type (Metal, Compound, Alloy), Application (Battery, Lubricant, Aluminium Smelting and Alloy, Air Treatment, Medical, Glass and Ceramics, Metallurgy, Polymer, Others), End-User Industry (Industrial, Consumer Electronics, Electric Vehicle, Energy Storage, Medical) – Industry Trends and Forecast to 2029.

 Lithium Market Analysis and Size

The global lithium market is likely to witness significant growth in the forecast period. There is an increase in the usage of lithium-ion batteries in the automotive industry due to their numerous benefits such as high energy density, long life cycle, low self-discharge rate, and fast charging capability. Along with this, an upsurge in the demand for the consumer electronics such as mobile phones, cameras, laptops and power tools which is powered by lithium-ion batteries is majorly contributing to the growth of the lithium market.

Data Bridge Market Research analyses that the lithium market was valued at USD 6.83 billion in 2021 and is expected to reach USD 17.52 billion by 2029, registering a CAGR of 12.50% during the forecast period of 2022 to 2029 In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Lithium Market Scope and Segmentation

Market Definition

Lithium is a soft, silver-white metal with a high flammability and reactivity. It is usually kept in mineral oil. The concentration of lithium in the earth's crust is expected to be 20-70 ppm by weight. Lithium is found in animals, plants, soil, and the human body. It is typically extracted from ores and mineral springs, where it can be found in trace amounts. It is used in aircraft cooling systems, special glasses, bicycle frames, rechargeable batteries, nuclear reactors, glass ceramics, and armour plating, among other things.

Global Lithium Market Dynamics

Drivers

• High usage of lithium in manufacturing of lithium-ion rechargeable batteries

Lithium has been extensively used in the production of lithium-ion rechargeable battery to consume and save energy. Lithium-ion batteries are used in various applications such as cameras, laptops, power tools, mobile phones, and vehicles. For instance, BMW Group has signed a contract with Ganfeng Lithium, a lithium extracting company in China, to supply LiOH for battery cells due to the growing penetration of EVs. Increasing awareness regarding environment-friendly vehicles which is driving the demand for the EVs. So, BMW has planned to introduce 25 electrified models in the market with Li-ion batteries.The rising demand of lithium for the production of batteries is expected to drive the growth rate of the lithium market.

• Increasing demand of electric vehicle

The increasing preference of electric vehicles is projected to drive the growth rate of the lithium market. Lack of efficient public transport is enforcing the customers to use electric vehicle for daily travel. Growing number of electric vehicles in emerging economies are expected to drive the demand for the rechargeable batteries, which may increase the growth of the lithium market during forecast period of 2022-2029.

Furthermore, rising lithium demand from numerous end user industries is a major factor which is expected to boost the market growth. The increasing government policies due to environmental concerns and growing usage of portable devices by using li-ion batteries are some other major factors which are expected to boost market growth.

Opportunities

• Rising investment in electric vehicle market

The expanding investment in electric vehicle market owing to the high demand of two-wheelers in emerging nations has led to the adoption of the rechargeable batteries such as lithium ion batteries during forecast period. For Instance: According to the Avenue Capitals, electric vehicle (EV) market is likely to be Rs 50,000 crore (US$ 7.09 billion) opportunity by 2025 for two- wheeler and three-wheeler vehicle In India, which is expected to generate immense opportunities for the market growth rate.

Furthermore, increasing number of technological advancement with the growing number of research and development activities will further create lucrative opportunities that will led to the growth of the lithium market during the forecast period of 2022-2029.

Restraints/Challenges

• High cost associated with lithium

High operational price for the manufacture of lithium is a key factor among others which is acting as a market restraint and will further challenge the growth of the lithium market in the above mentioned period.

Moreover, increasing implementation of stringent rules regarding the use of lithium is another major factor which is hindering the sales of the lithium across the globe.

This lithium market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the lithium market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

COVID-19 Impact on Lithium Market

The automotive sector showed sharp declines in the production and sales of lithium batteries which has adversely affected the growth of the lithium market during COV???????ID-19 pandemic. Governments imposed global lockdowns to curb the widespread pandemic, and several manufacturers had to suspend operations temporarily. However, in the early months of the pandemic, it has been witnessed that the base metal prices have started to show gradual recovery, mostly due to the huge strong revival of China’s economy, thus, creating lucrative opportunities for lithium industry growth in the years ahead.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• In January 2021, Albemarle Corporation expanded its lithium production capacity in silver peak, Nevada, the U.S.
• In May 2021, SQM continues to increase its lithium hydroxide and carbonate production plants in chile. This company has expanded their capacity to attain 21.5 KT per year of LiOH and 120 KT per year of Li2Co2 by the end of 2021.

Global Lithium Market Scope

The lithium market is segmented on the basis of type, application and end-user industry. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Metal
• Compound
• Alloy

Application

• Battery
• Lubricant
• Aluminium Smelting
• Alloy
• Air Treatment
• Medical
• Glass and Ceramics
• Metallurgy
• Polymer
• Others

End-User Industry

• Industrial
• Consumer Electronics
• Electric Vehicle
• Energy Storage
• Medical

Lithium Market Regional Analysis/Insights

The lithium market is analysed and market size insights and trends are provided by country, type, application and end-user industry as referenced above.

The countries covered in the lithium market report are U.S., Canada and Mexico in North America, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe in Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific (APAC) in the Asia-Pacific (APAC), Saudi Arabia, U.A.E, South Africa, Egypt, Israel, Rest of Middle East and Africa (MEA) as a part of Middle East and Africa (MEA), Brazil, Argentina and Rest of South America as part of South America.

Asia-Pacific dominates the lithium market in terms of revenue due to the increasing usage of the product in battery production. China dominates the Asia-Pacific lithium market owing to cheap labour, the easy availability of the lithium reserves and several manufacturers along with in this region.

Europe is anticipated to be the fastest developing region during the forecast period of 2022-2029 due to the prevalence of key manufacturers. Germany is likely to hold the largest growth rate in the Europe lithium market owing to the growing production of electric vehicles in this region.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Lithium Market Share Analysis

The lithium market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to lithium market.

Some of the major players operating in the lithium market are:

• SQM S.A., (Chile)
• Livent (U.S.)
• Albemarle Corporation (U.S.)
• Tianqi Lithium (China)
• Ganfeng Lithium Co. Ltd, (China)
• China Lithium Products Technology Co. Ltd (China)
• Shanghai China Lithium Industrial Co.,Ltd (China)
• Nemaska Lithium (Canada)
• Bacanora Lithium (U.K.)
• Lithium Americas Corp. (Canada)
• Galaxy Resources Ltd (Australia)
• Orocobre Limited Pty Ltd (Australia)
• Neo Lithium (Canada)
• Millennial Lithium (Canada)
• FMC Corporation (U.S.)