Lithium Market

Market Overview:

Lithium is a chemical element with symbol Li and atomic number 3. It can be defined as a soft, silvery-white alkali metal which is known to be highly reactive, light and low in density. It is being widely used in a broad range of applications but it has become a crucial component of lithium-ion batteries due to its superior properties such as lightness, reactivity, and recharge ability. The global lithium market was valued at around USD 3.1 billion in year 2020 and is expected to reach approximately USD 7.8 billion during forecast period registering CAGR of 12.4%.

Lithium Market Report Scope

Market Segmentation::

By product, the global lithium market has been segmented into carbonate, hydroxide, and others. The carbonate product segment accounted for the largest market share in 2020 and is expected to register significant growth during the review period. The segment growth can be attributed to widespread use of lithium carbonate in the end-use industries particularly automotive and electrical & electronics. Lithium carbonate is known to be the most stable inorganic compound. It is being widely used in the production of other compounds such as Lithium Hydroxide and pure metal. It is also used in the treatment of bipolar disorder. Lithium hydroxide (LiOH) is an inorganic hygroscopic crystalline compound which consists of lithium, hydrogen, and oxygen elements. It is completely soluble in water and partially in ethanol. Lithium hydroxide is available in anhydrous and monohydrate form. It is being widely used in the rechargeable lithium ion batteries.

By application, the global lithium market has been segmented into battery, grease, air treatment, pharmaceuticals, glass & ceramic, polymer and others. The battery segment accounted for the largest market share in 2020 and is expected to grow at a significant CAGR during the review period. Lithium is being used widely in the batteries as lithium based batteries have high energy and power density, high round-trip efficiency, and a low self-discharge rate. These batteries have been widely used in portable electronics and are being increasingly used in the electric vehicles due to high power density. Glass & ceramic application segment accounted for the second largest market share in 2020 and is expected to grow at a considerable CAGR during the review period. It is used in numerous glass & ceramic applications owing to its superior properties such as reduced thermal expansion, improved durability, low viscosity and light weight among others. In addition to this, increasing product usage in grease in various industrial components is expected to add to the market growth substantially during the review period.

Market Dynamics and Factors:

The growth of the global lithium market is primarily driven by increasing demand for batteries in the electric vehicles. Expanding production of the electric vehicles across geographies on account of increasing environmental regulations pertaining to carbon emissions is the key factor driving the global lithium market growth. Growing electrical & electronics industry with rising demand for portable consumer electronics such as smartphones, TV and laptop among others is likely to fuel the global lithium market product demand at a significant rate during the review period.  

Expanding electric vehicle production in the developing countries such as India, Indonesia and Vietnam among others is expected to create lucrative growth opportunities for the players operating in the global lithium market in the coming years.

However, oversupply of the product due to initiation of various lithium mining projects in Australia and China to meet the future demand for batteries in electric vehicles resulted in decline in price of lithium. This is likely to hamper the global lithium market growth in the coming years.

Geographical Analysis:

By geography, the global lithium market has been segmented into North America, Europe, Asia-Pacific, Latin America and the Middle East & Africa. The market in Asia-Pacific accounted for the largest share in 2018 and is expected to grow at a significant CAGR during the review period. The market growth can be attributed to the expanding production and sale of electric vehicles particularly in China. For instance, in 2018, China sold around 1.1 million electric vehicles. In addition, government subsidies to promote sale of electric vehicles in the developing countries is also one of the prime factor supporting the growth of the electric vehicles market and thus, lithium. Furthermore, expanding electrical & electronics industry with increased spending on consumer electronics is also supporting the market growth.

The market growth in North America is driven by the expanding production of lithium batteries to meet growing demand for electric vehicles to reduce carbon emissions. The European market growth is driven by the reviving automotive industry with increasing production electric vehicles particularly in Germany. Increasing environmental regulation to curb carbon emissions is driving the growth of the electric vehicles market and thus, global lithium market in the region.

The market growth in Latin America and the Middle East & Africa is expected to be driven by the expansion of the automotive and electrical & electronics industries.

Key Market Segmentation

Global Lithium Market, By Product

o    Carbonate

o    Hydroxide

o    Others

Global Lithium Market, By Application

o    Battery

o    Grease

o    Air Treatment

o    Pharmaceuticals

o    Glass & Ceramic

o    Polymer

o    Others

Global Lithium Market, By Region

North America

o    US

o    Canada

o    Mexico

Europe

o    Germany

o    UK

o    France

o    Italy

o    Spain

o    Rest of Europe

Asia-Pacific

o    China

o    India

o    Japan

o    South Korea

o    Rest of Asia-Pacific

Middle East and Africa

South America