The market for lithium is anticipated to register a CAGR of over 10% during the forecast period. Key factors driving the market growth include the accelerating demand for electric vehicles, growing usage and demand from portable consumer electronics, increasing demand from the glass-making industry, and many others.

  • The growing adoption of electric vehicles (EVs) is driven by the rising concerns for the environment, as these vehicles help reduce carbon emission levels. Governments across the world are implementing stringent emission norms, to control and reduce carbon emissions, thereby augmenting the growth of the market.
  • On the flipside, the demand supply gap in the lithium market is expected to hinder the growth of the market.



Key Market Trends

Electric Vehicles to Drive the Market Growth

  • Electric vehicles have been increasingly used in most developed economies, and are fast replacing traditional vehicles. Lithium batteries can be categorized into two segments, namely, disposable and rechargeable. Disposable lithium batteries use lithium in the metallic form, as an anode, and these batteries have a long life (high charge density) compared to other standard batteries.
  • Lithium is used in high-energy density, rechargeable lithium-ion batteries, which power the batteries in full-electric, plug-in hybrid, and hybrid vehicles (EVs, PEV, and HEVs), respectively. Due to the growth in EV technology, as well as concerns over increased CO2 pollution from combustion engines and rising fuel costs, lithium has been put into widespread use in EV batteries.
  • The major regions in which the production of electric vehicles is prominent include the European countries, such as Norway, Iceland, Sweden, and Belgium, among others. It is estimated that Norway accounted for almost one-third of the total market share in 2018. This is expected to see a sharp surge in the coming years, due to the environment viable nature of electric vehicles, over other petrol/diesel-based cars in the automotive sector.
  • Lithium-ion battery used in electric vehicles has a rechargeable nature and commendable lifetime. Moreover, EVs can also use rapid charging points that can top up the batteries to 80% capacity in around 30 minutes. All the aforementioned factors have helped electric vehicles gain popularity.
  • Some of the major manufacturers of EV battery are Tesla, Nissan, General Motors, Volkswagen, and BMW, among others.
  • All the aforementioned factors are expected to drive the global market, during the forecast period.



Asia-Pacific Region to Dominate the Market

  • Asia-Pacific region is the largest consumer of lithium, globally, with majority of the consumption coming from China.
  • China has salt lakes in Qinghai province, spodumene resources mainly in Xinjiang and Sichuan province, and lepidolite in Jiangxi province.
  • The Indian lithium industry is expected to witness significant growth in the region, during forecast period, after China.
  • Rise in technological developments and increasing need for cleaner energy sources have brought Li-ion batteries on the forefront across various industries, as well as end-use sectors.
  • Japan is one of the prominent regions for the lithium battery market, along with China and Korea, occupying a 96% market share in terms of battery capacity shipments.
  • Lithium carbonate consumption decreased, owing to slower than anticipated growth of lithium-ion batteries in electric vehicles, and the continued transfer of lithium-ion battery manufacturing plants from Japan to China.
  • Japan’s lithium metal consumption decreased, owing to the relocation of primary battery manufacturing plants from Japan to Indonesia.
  • Emerging economies are expected to increase the consumption of lithium in various end-use products.
  • Owing to the increasing population, increase in regional acceptance of solar thermal and solar electric technologies (renewable heat) in emerging countries, such as Pakistan, Bangladesh, Nepal, Sri Lanka, Cambodia, Laos, etc., are expected to increase the consumption of lithium in energy storage, in the coming years.



Competitive Landscape

The lithium market is oligopoly, with four of the major players accounting for more than 90% of the market. Key players in the lithium market include Ganfeng Lithium Co.,Ltd., Albemarle Corporation, Todos los derechos reservados SQM S.A., Tianqi Lithium, Livent, Avalon Advanced Materials Inc., Critical Elements Lithium Corporation, Lithium Americas Corp., and Sayona Mining Limited, among others.

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