Global Lithium Market to Reach US$16.8 Billion by 2030

The global market for Lithium estimated at US$9.2 Billion in the year 2024, is expected to reach US$16.8 Billion by 2030, growing at a CAGR of 10.5% over the analysis period 2024-2030. Carbonates, one of the segments analyzed in the report, is expected to record a 11.1% CAGR and reach US$8.5 Billion by the end of the analysis period. Growth in the Hydroxide segment is estimated at 10.4% CAGR over the analysis period.

The U.S. Market is Estimated at US$934.4 Million While China is Forecast to Grow at 12.5% CAGR

The Lithium market in the U.S. is estimated at US$934.4 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$4.8 Billion by the year 2030 trailing a CAGR of 12.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 7.6% and 8.0% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 9.0% CAGR.

Global Lithium Market - Key Trends & Drivers Summarized

Lithium, a soft, silvery-white metal, is the lightest of all the alkali metals and is highly reactive, especially with water. It was first discovered in 1817 and has since become a critical component in various industrial applications. Lithium is most commonly known for its pivotal role in the production of rechargeable lithium-ion batteries, which power a vast array of electronic devices, from smartphones and laptops to electric vehicles (EVs). These batteries are favored for their high energy density, long cycle life, and lightweight properties. Beyond batteries, lithium is also used in ceramics and glass production, where it improves the strength and thermal resistance of these materials. Additionally, lithium compounds are utilized in the pharmaceutical industry, particularly for the treatment of bipolar disorder, showcasing its versatility and importance across different sectors.

In recent years, the demand for lithium has surged, driven largely by the rapid expansion of the electric vehicle market and the growing need for renewable energy storage solutions. Lithium-ion batteries are central to these developments due to their efficiency and relatively low environmental impact compared to traditional fossil fuels. Major lithium producers, including Australia, Chile, and China, have ramped up extraction and production efforts to meet this increasing demand. The extraction of lithium typically involves mining it from spodumene ores or extracting it from lithium-rich brine pools found in salt flats. Despite the growing demand, the supply chain faces challenges such as the environmental impact of mining operations and the geopolitical tensions surrounding major lithium-producing regions. These factors underscore the need for sustainable and diversified sources of lithium to ensure a stable supply.

The growth in the lithium market is driven by several factors, including technological advancements, increased adoption of electric vehicles, and the expansion of renewable energy projects. Advances in battery technology, such as improvements in energy density and charging times, have made lithium-ion batteries more attractive for a wider range of applications, spurring demand. The global push towards reducing carbon emissions has led to significant government incentives and policies promoting the use of electric vehicles, further bolstering the need for lithium. Additionally, the rise of renewable energy sources like solar and wind power necessitates efficient energy storage solutions to manage intermittent energy supply, driving the demand for lithium-based batteries. Consumer behavior is also shifting towards more sustainable and environmentally friendly products, contributing to the growth of the lithium market. Furthermore, ongoing research into recycling and recovering lithium from used batteries aims to create a more circular economy, enhancing the sustainability and availability of this critical resource.