Lithium Market To Reach $74.80 Billion By 2030 | CAGR: 17.7%

Lithium Market Growth & Trends

The global lithium market size is expected to reach USD 74.80 billion by 2030, according to a new report by Grand View Research, Inc. The market is projected to grow at a CAGR of 17.7% from 2024 to 2030. As the world moves toward a more sustainable future, the demand for grid-scale storage solutions is also growing for the expansion of renewable energy sources and the adoption of electric vehicles (EVs). Therefore, the demand for lithium is expected to increase as a major component in lithium-ion batteries that are used in EVs, consumer goods, and grid storage.

For example, in April 2023, Kyon Energy, a developer, secured the largest approved battery energy storage system (BESS) in Europe for a 275 MWh project in Germany. The grid fee exemptions for energy storage have been extended until 2029. Kyon Energy has received approval for a BESS project of 137.5MW/275MWh. Its construction is expected to begin in 2024 and will be commissioned by the end of 2025.

Lithium recycling is a complex process; however, with the rising penetration of lithium-ion batteries, the demand for lithium may outpace supply. Therefore, researchers are focusing on the extraction and recycling of lithium through various new technologies. Lithium compounds are extracted from batteries as per individual methods and stages. The stages are divided into pre-treatment and extraction stages, while extraction is again categorized into hydrometallurgy, pyrometallurgy, and electrochemical extraction. Despite the growing emphasis and development of different recycling technologies, less than 1% of lithium is recycled currently.

Asia Pacific's dominance can be attributed to the increased battery production and growth in manufacturing among end-use industries, including electronics, glass, and ceramics. Due to the high concentration of automotive and consumer electronics manufacturers in the region, Asia Pacific is anticipated to witness high growth over the forecast period.

Long-term supply agreements in the lithium industry are becoming increasingly common as end-users seek to mitigate risks associated with supply chain disruptions, price volatility, and regulatory compliance while also supporting sustainability and innovation. For instance, in May 2023, Nemaska Lithium signed a long-term deal with Ford for the supply of lithium products, especially lithium hydroxide. The agreement will last for 11 years and will entail the delivery of up to 13,000 mt of lithium hydroxide per year.

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Lithium Market Report Highlights

• In terms of revenue, the hydroxide product segment is projected to register the fastest CAGR from 2024 to 2030. The rapid development of battery technologies is projected to remain a key driver for the segment.

• Automotive was the largest application segment in 2023. The rising penetration of Electric Vehicles (EVs), along with stringent emission regulations by government bodies, is the key focus area for market vendors.

• The consumer electronics segment is projected to witness the highest CAGR over the forecast period in terms of revenue due to the high demand for electronic products, such as smartphones, laptops, wearables, portable speakers, and tablets.

• Asia Pacific was the largest regional market in 2023 in terms of both volume and revenue. The region's growth can be attributed to heavy investments in lithium mining and lithium-ion battery technologies.

• In terms of revenue, Europe held the second-largest market share in 2023. The growth of the region is attributable to the rising penetration of EVs and growing concerns about Greenhouse Gas (GHG) emissions

Lithium Market Segmentation

Grand View Research has segmented the global lithium market based on product, application, and region.

Lithium Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Carbonates

• Hydroxide

• Others

Lithium Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Automotive

• Consumer Electronics

• Grid Storage

• Glass & Ceramics

• Others

Lithium Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

• Asia Pacific

  • China

  • South Korea

  • Japan

• Central & South America

• Middle East & Africa

List of Key Players in the Lithium Market

• 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