Lithium Hydroxide Market Trends

Statistics for the 2023 & 2024 Lithium Hydroxide market trends, created by Mordor Intelligenceā„¢ Industry Reports. Lithium Hydroxide trend report includes a market forecast to 2029 and historical overview. Get a sample of this industry trends analysis as a free report PDF download.

Single User License
Team License
Corporate License
Book before:

Single User License

OFF

Team License

OFF

Corporate License

OFF
Book before:

Market Trends of Lithium Hydroxide Industry

Battery Application Segment to Dominate the Market

Lithium Hydroxide is a preferred compound for making cathodes in rechargeable batteries because it has a high electrochemical potential, which means it can produce a significant amount of electrical energy. It is lightweight, which is important for portable devices like electric vehicles. Lithium Hydroxide has good thermal stability and can improve the battery's overall performance, making it a popular choice for manufacturers.

Governments worldwide are promoting the growth of the electric vehicle market by offering generous subsidies and incentives to consumers who purchase electric vehicles and implementing stricter regulations on conventional vehicles. For example, China has been leading the charge in the electric vehicle market and aims to have more than 50% of all new car sales be electric vehicles by 2035. These government policies have played a significant role in driving the growth of the electric vehicle market.

The battery application segment of the global lithium hydroxide market refers to the use of lithium hydroxide in manufacturing cathode materials for lithium-ion batteries. Lithium-ion batteries are widely used in applications such as portable electronics, electric vehicles, and stationary energy storage systems. Lithium hydroxide is a key material in producing cathodes for these batteries, making it a critical component of the lithium-ion battery supply chain.

The global sales of electric vehicles have been growing rapidly in recent years. According to the International Energy Agency (IEA), global sales of electric vehicles reached a record high of 4.7 million units in 2021, a 43% increase from the previous year. The growth of the electric vehicle market is driven by factors such as government subsidies and incentives, environmental concerns, and advances in battery technology that has led to longer driving ranges and faster charging times.

Disposable lithium batteries are batteries that use metallic lithium as an anode. These batteries have a long life and high charge density, making them suitable for applications such as pacemakers and other electronic medical devices that need long-lasting power sources. These batteries are designed to be used once and then disposed of, unlike rechargeable batteries that can be recharged and used multiple times.

Battery applications are moving towards larger power requirements and lower costs, driving the development of new and improved lithium-ion battery technology. Advances in battery technology are essential to meet consumer demand for electric vehicles and portable electronics with longer battery life and faster charging times. This has led to the development of new materials, manufacturing processes, and battery management systems that can improve the performance and cost-effectiveness of lithium-ion batteries.

Researchers are exploring substitutes for anode materials to increase charge capacity in lithium-ion batteries. One promising technology is lithium-sulfur batteries, which have a higher theoretical energy density than traditional lithium-ion batteries. Another technology under development is lithium-air batteries, which could potentially have even higher energy densities than lithium-sulfur batteries. Finally, lithium-oxygen batteries are also being researched, which could have higher energy densities than lithium-air batteries.

Research and development activities focused on improving lithium-ion battery systems will offer numerous opportunities and fuel market growth shortly. With the growing demand for electric vehicles and portable electronics, the need for improved battery technology has never been greater.

Lithium Hydroxide Market: Global Battery Electric Car Sales, Million Units, 2018-2021

Asia-Pacific Region to Dominate the Market

Asia-Pacific region dominated the global market share. China has been both the leading producer and market for Li-ion batteries. South Korea and Japan also have a high demand for Li-ion batteries.

According to the US Geological Survey, China has one of the largest lithium reserves, estimated at around 6.8 million metric tons. China was the leading producer of lithium in 2022, producing an estimated 39,000 tons, a 37.8% increase from 2021.

The majority of China's lithium reserves are in the Tibet Autonomous Region, Qinghai Province, and Sichuan Province. However, despite possessing substantial reserves, China is a net importer of lithium, as its domestic demand far exceeds its domestic production capacity.

China has been actively looking for partnerships with other nations in recent years to secure lithium supplies and increase its domestic production capacity. China has invested in lithium mining ventures in key lithium producers Australia, Chile, and Argentina. To ensure consistent supplies of lithium, Chinese corporations have also signed long-term supply contracts with lithium producers in Australia and Chile.

Global investment in the battery supply chain and the need for cheaper batteries are driven by the emergence of the Electric Vehicle (EV). This growing market has been pioneered by Tesla in recent years, but the larger catalyst for global mass-market uptake of EV technology in China, where government subsidies are in place for both passenger EV vehicles and commercial EV's (buses and small trucks).

In recent years, India has witnessed a significant increase in investments in the production of lithium-ion batteries. This is a result of the growing demand for electric vehicles (EVs) and the Indian government's efforts to promote EV adoption in the country. The Indian government declared incentives under a USD 2.1 billion programme in July 2022. In addition to the capacities allocated by the Ministry of Heavy Industries under the PLI Program, it is anticipated that private actors will create 95 GWh of battery manufacturing capacity.

The rise in urbanization is expected to boost the demand for technically advanced devices, due to the benefits provided by the devices. This is expected to, consequently, lead to a growth in demand for lithium-ion batteries in the region. With growing industrialization in countries such as China and India demand for power tools that use lithium-ion batteries is also expected to increase. This, in turn, is expected to boost the demand for lithium hydroxide market.

Lithium Hydroxide Market - Growth Rate by Region

Lithium Hydroxide Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)