Lithium Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Lithium Market is segmented by Type (Metal, Compound, and Alloy), Application (Battery, Grease, Air Treatment, Pharmaceuticals, Glass/Ceramic (including Frits), Polymer, and Other Applications), End-user Industry (Industrial, Consumer Electronics, Energy Storage, Medical, Automotive, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Lithium Market Overview
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >10 %
Lithium Market Major Players

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Market Overview

The lithium market size was estimated at 280 kiloton in 2020, and the market is projected to register a CAGR of over 10% during the forecast period (2021-2026).

The market was negatively impacted by COVID-19 in 2020. Considering the pandemic scenario, electronic vehicle (EV) and device manufacturing units were on temporary shutdown, which led to a decrease in the consumption of lithium batteries and lithium during the lockdown. However, as the lockdowns were lifted, the EV segment had picked up the pace to meet the target emission standards set by many countries, which may enhance the demand for lithium batteries, and thus, this will stimulate the demand for lithium in the coming years.

  • Over the short term, accelerating demand for electric vehicles, increasing usage and demand for lithium-ion batteries by portable consumer electronics, and growing demand for lithium from the glass-making industry to enhance glass melt rate and to lower the viscosity of glass are expected to drive the market’s growth in the forecast period.
  • On the flip side, the demand-supply gap in the lithium market is expected to hinder the growth of the market.
  • The Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Scope of the Report

Lithium is a soft, silvery-white alkali metal with atomic number 3 and the symbol Li. The main sources of lithium are underground lithium-containing brine reservoirs and lithium-containing rock, such as spodumene. The lithium market is segmented by type, application, end-user industry, and geography. By type, the market is segmented into metal, compound, and alloy. By application, the market is segmented into battery, grease, air treatment, pharmaceuticals, glass/ceramic (including frits), polymer, and other applications. By end-user industry, the market is segmented into industrial, consumer electronics, energy storage, medical, automotive, and other end-user industries. The report also covers the market size and forecasts for the lithium market in 17 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (kiloton).

Type
Metal
Compound
Carbonate
Chloride
Hydroxide
Alloy
Application
Battery
Grease
Air Treatment
Pharmaceuticals
Glass/Ceramic (including Frits)
Polymer
Other Applications
End-user Industry
Industrial
Consumer Electronics
Energy Storage
Medical
Automotive
Other End-user Industries
Geography
Production and Reserve Analysis
Australia
Chile
China
Argentina
Zimbabwe
Canada
United States
Other Countries
Consumption Analysis
Asia-Pacific
China
India
Japan
South Korea
Australia & New Zealand
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
NORDIC Countries
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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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. Norway has accounted for about 48% of global new battery-electric vehicle sales in the first half of 2020.
  • In 2019, Norway had 384 thousand electric and plug-in hybrid cars, and the number reached about 490 thousand in 2020, with a growth rate of about 27.5%, which, in turn, stimulates the demand in the lithium market, 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 batteries are Tesla, Nissan, General Motors, Volkswagen, and BMW, among others.
  • All the aforementioned factors are expected to drive the global lithium market during the forecast period.
Lithium Market Key Trends

Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region is the largest consumer of lithium globally, with the majority of the consumption coming from China, South Korea, and Japan.
  • The Chinese lithium-ion battery market was valued at about USD 12.6 billion in 2018, and it is estimated to reach about USD 23.15 billion by 2024, with a CAGR of 10.5%, which, in turn, stimulates the demand in the lithium market.
  • China has salt lakes in Qinghai province, spodumene resources, a lithium source, mainly in Xinjiang and Sichuan provinces, and lepidolite in Jiangxi province.
  • The Indian lithium industry is expected to witness significant growth in the region, during the forecast period, after China.
  • The rise in technological developments and the increasing need for cleaner energy sources have brought Li-ion batteries to 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. The Japanese lithium battery market was valued at USD 329 million in 2019, with a decline rate of about 8.5% compared to the previous year, which, in turn, negatively impacts the demand for lithium.
  • 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.
  • Therefore, the aforementioned factors are expected to show a significant impact on the market in the coming years.
Lithium Market Growth Rate

Competitive Landscape

The lithium market is an oligopoly, with four of the major players accounting for more than 90% of the market. Some of the major players in the market include Ganfeng Lithium Co. Ltd, Albemarle Corporation, SQM SA, Tianqi Lithium, and Avalon Advanced Materials Inc., among others.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Accelerating Demand for Electric Vehicles

      2. 4.1.2 Increasing Usage and Demand by Portable Consumer Electronics

      3. 4.1.3 Other Drivers

    2. 4.2 Restraints

      1. 4.2.1 Demand-supply Gap in the Lithium Market

      2. 4.2.2 Unfavorable Conditions Arising due to the COVID-19 Impact

    3. 4.3 Industry Value-Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Buyers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

  5. 5. MARKET SEGMENTATION

    1. 5.1 Type

      1. 5.1.1 Metal

      2. 5.1.2 Compound

        1. 5.1.2.1 Carbonate

        2. 5.1.2.2 Chloride

        3. 5.1.2.3 Hydroxide

      3. 5.1.3 Alloy

    2. 5.2 Application

      1. 5.2.1 Battery

      2. 5.2.2 Grease

      3. 5.2.3 Air Treatment

      4. 5.2.4 Pharmaceuticals

      5. 5.2.5 Glass/Ceramic (including Frits)

      6. 5.2.6 Polymer

      7. 5.2.7 Other Applications

    3. 5.3 End-user Industry

      1. 5.3.1 Industrial

      2. 5.3.2 Consumer Electronics

      3. 5.3.3 Energy Storage

      4. 5.3.4 Medical

      5. 5.3.5 Automotive

      6. 5.3.6 Other End-user Industries

    4. 5.4 Geography

      1. 5.4.1 Production and Reserve Analysis

        1. 5.4.1.1 Australia

        2. 5.4.1.2 Chile

        3. 5.4.1.3 China

        4. 5.4.1.4 Argentina

        5. 5.4.1.5 Zimbabwe

        6. 5.4.1.6 Canada

        7. 5.4.1.7 United States

        8. 5.4.1.8 Other Countries

      2. 5.4.2 Consumption Analysis

        1. 5.4.2.1 Asia-Pacific

          1. 5.4.2.1.1 China

          2. 5.4.2.1.2 India

          3. 5.4.2.1.3 Japan

          4. 5.4.2.1.4 South Korea

          5. 5.4.2.1.5 Australia & New Zealand

          6. 5.4.2.1.6 Rest of Asia-Pacific

        2. 5.4.2.2 North America

          1. 5.4.2.2.1 United States

          2. 5.4.2.2.2 Canada

          3. 5.4.2.2.3 Mexico

        3. 5.4.2.3 Europe

          1. 5.4.2.3.1 Germany

          2. 5.4.2.3.2 United Kingdom

          3. 5.4.2.3.3 France

          4. 5.4.2.3.4 Italy

          5. 5.4.2.3.5 NORDIC Countries

          6. 5.4.2.3.6 Rest of Europe

        4. 5.4.2.4 South America

          1. 5.4.2.4.1 Brazil

          2. 5.4.2.4.2 Argentina

          3. 5.4.2.4.3 Rest of South America

        5. 5.4.2.5 Middle-East and Africa

          1. 5.4.2.5.1 Saudi Arabia

          2. 5.4.2.5.2 South Africa

          3. 5.4.2.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share/Ranking Analysis**

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Albemarle Corporation

      2. 6.4.2 Altura Mining

      3. 6.4.3 Avalon Advanced Materials Inc.

      4. 6.4.4 Corporation Lithium Elements Critiques

      5. 6.4.5 FMC Corporation

      6. 6.4.6 Galaxy Resources Limited

      7. 6.4.7 Ganfeng Lithium Co. Ltd

      8. 6.4.8 Lithium Americas Corp.

      9. 6.4.9 Nemaska Lithium

      10. 6.4.10 Neometals Ltd

      11. 6.4.11 Novo Litio Ltd

      12. 6.4.12 Orocobre Limited Pty Ltd

      13. 6.4.13 Perseus Mining Limited

      14. 6.4.14 Sayona Mining Limited

      15. 6.4.15 SQM SA

      16. 6.4.16 Tianqi Lithium

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Growing Adoption in Smart Grid Electricity

    2. 7.2 Other Opportunities

**Subject to Availability

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Frequently Asked Questions

The Lithium Market market is studied from 2016 - 2026.

The Lithium Market is growing at a CAGR of >10% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Albemarle Corporation, SQM S.A., Ganfeng Lithium Co.,Ltd. , Tianqi Lithium, Avalon Advanced Materials Inc. are the major companies operating in Lithium Market.

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