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The Global Lithium Market size is estimated to grow by 1,066.47 thousand tons. at a CAGR of 25% between 2022 and 2027. The growth of the market depends on several factors, including a surge in demand from diversified applications, a rise in demand from developing countries, and an increased demand from the EVs industry. However, the industry has its own set of challenges such as the rise in availability of substitute products, lack of recharging infrastructure, and toxicity of lithium hydroxide. But to overcome the challenges market trends such as capacity expansions to accelerate market growth, rise in preference for renewable energy, and rise in number of partnerships and R and D activities will boost the market growth.
It also includes an in-depth analysis of drivers, trends, and challenges.
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Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The rise in demand from developing countries is a key factor driving the market size. The global market is experiencing rapid growth, driven by the escalating demand for these in developing economies like China, India, Chile, Argentina, Brazil, and Mexico. Numerous Original Equipment Manufacturers (OEMs) are relocating their manufacturing bases to these regions due to factors such as abundant mining ores, cost-effective labor, low transportation expenses, availability of land and raw materials, and relaxed government regulations. The establishment of additional production plants in Chile, Argentina, and Australia is also anticipated to contribute to market expansion.
In the Asia-Pacific (APAC) and Latin American regions, the surging population, increasing disposable income, and higher purchasing power are spurring investments in the automotive and construction sectors. The construction industry's growing use of these products for ceramics and glasses is expected to boost market growth further. Additionally, the escalating construction activities in APAC and the Middle East will drive the demand for lithium. Moreover, increased investments and government initiatives in countries like China, India, and Japan for electric vehicle (EV) production are poised to propel market growth in these nations.
The rise in preference for renewable energy is a prominent trend propelling market growth. The market is poised to experience significant growth as it finds extensive use in battery storage solutions within the renewable energy industry. The rising global popularity of renewable energy has led to a steady increase in the installation of renewable energy sources. This trend includes the growing adoption of hybrid wind turbines, utilizing lithium-ion storage batteries, and solar panels, employing lithium-ion batteries for solar energy storage.
Additionally, the increased utilization of solar photovoltaic cells for power generation is projected to drive the demand for lithium-ion storage batteries in the forecast period. Moreover, onshore wind power generation has become a highly cost-effective energy source, further fueling the demand for lithium-ion storage batteries. Consequently, over the next 5-10 years, the demand for lithium hydroxide, a key component for producing lithium-ion batteries, is expected to surge.
The lack of recharging infrastructure is the major challenge impeding market growth. The presence of adequate infrastructure significantly influences the sales of electric vehicles (EVs) and subsequently impacts the demand for lithium-ion batteries. EV owners face challenges in finding suitable charging stations, as there is no standardized recharging facility, unlike conventional vehicles. This limitation hampers the widespread adoption of EVs, and in India, for instance, Mahindra faces obstacles in increasing Reva's sales due to the lack of charging infrastructure in cities.
To drive the adoption of EVs during the forecast period, there is a need for public awareness and marketing campaigns promoting the adoption of EVs and the development of charging infrastructure. The government's role in developing charging infrastructure is crucial, but currently, there is limited focus on this aspect. Some European countries with high EV sales, such as Norway, the Netherlands, and Denmark, have also faced concerns over the lack of proper recharging infrastructure for EVs. Effective implementation of marketing and communication strategies to raise awareness among producers and consumers is pivotal in encouraging the public to adopt EVs. Unfortunately, these strategies have not been adequately executed, leading to reduced public awareness of EVs, which could impact the growth of the global market.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Avalon Advanced Materials Inc. - The company offers solutions such as lubricants, and chemicals.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market share growth of the batteries segment will be significant during the forecast period. Lithium-ion batteries are designed to offer high-energy density with low weight and size. The increasing demand for lithium-ion batteries from the EVs, consumer electronics, and power grid storage sectors is expected to drive market growth. In addition, government regulations and subsidies for EVs are expected to augment market growth.
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The batteries segment was valued at 148.29 thousand t in 2017 and continued to grow until 2021. Lithium-ion batteries have emerged as the most promising solution for energy storage in EVs owing to their outstanding electrochemical performance and capacity. Also, the batteries practically require no maintenance, which reduces the chances of downtime in EVs powered by lithium-ion batteries. Therefore, the increasing demand for lithium-ion batteries is expected to increase the demand for lithium, thereby driving market growth.
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APAC is estimated to contribute 70% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Factors such as the increased demand for these products from the automobile, construction, and industrial sectors and the rise in demand for EVs from countries such as China, Japan, India, and Indonesia are expected to fuel the growth of the market in APAC. The Chinese government foresees that the use of EVs is one of the most effective ways to reduce pollution in cities such as Beijing and Shanghai. The Chinese government has announced its plan to set up new charging stations for EVs at different places in the country. Japan is home to bestselling EV makers, including Toyota, Honda, and Nissan. Furthermore, the increase in the number of infrastructural projects and construction activities in India, China, Japan, Singapore, Thailand, Indonesia, the Philippines, and other APAC countries are expected to drive the demand for lithium, owing to the increased use of material in the formulation of ceramics and glass.
The lithium-ion battery market in APAC witnessed certain challenges owing to the COVID-19 outbreak in early 2020. However, the easing of travel restrictions, resumption of operations in the manufacturing sector, and the large-scale COVID-19 vaccination drives supported the growth of the regional market in focus in 2021. Moreover, in the post-COVID-19 scenario, as the demand for EVs increased, there was a rise in demand for dehumidification systems and solutions in the industry.
The market research analysis report forecasts market growth by revenue at global, regional & country levels and provides market trends and analysis and growth opportunities from 2017 to 2027.
The Market is experiencing significant growth due to the electrification of vehicles and its automotive application segment. Traditional internal combustion engine (ICE) automakers are transitioning to electric vehicles (EVs) to reduce carbon dioxide emissions and meet environmental regulations, supported by government subsidies. The market relies on brines and minerals as primary sources, with projects like the Thacker Pass Mine by Lithium Nevada Corporation aiming to extract lithium for battery-grade carbonate used in lithium-ion (Li-ion) batteries. These batteries are crucial in various industries such as electronics and transportation, powering devices like smartphones, tablets, laptops, and wearables. Companies like Suzuki Motor Corporation are investing in lithium technologies to enhance their product offerings. Lithium Carbonate (Li2CO3) and LiOH are essential components in the production of Li-ion batteries and rechargeable lithium-polymer cells. The market also involves the supply and demand dynamics of cobalt, graphite, and lithium, which are key materials for energy storage systems.
Lithium Market Scope |
|
Report Coverage |
Details |
Page number |
172 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 25% |
Market growth 2023-2027 |
1,066.47 thousand t |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
24.38 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 70% |
Key countries |
US, China, Japan, South Korea, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Albemarle Corp., Avalon Advanced Materials Inc., Critical Elements Lithium Corp., Ganfeng Lithium Co. Ltd., IGO Ltd., Lithium Americas Corp., Lithium Australia Ltd., Livent Corp., MGX Minerals Inc., Mineral Resources Ltd., Nemaska Lithium Inc., Neometals Ltd., Orocobre Ltd., Perseus Mining Ltd., Pilbara Minerals Ltd., Pluspetrol Resources Corporation B.V., Sayona Mining Ltd., Sociedad Quimica y Minera de Chile SA, Tianqi Lithium Corp., and Shanghai Oujin Lithium Industrial Co. Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market growth analysis for the |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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