Worldwide Lithium Industry Demand Outlook 2024: Key Trends and Future Growth Drivers 2024

 

Overview

Lithium is a member of Group 1 (Ia) in the periodic table, belonging to the alkali metal group, and is known as the lightest solid element. The global lithium market is expected to grow from USD 22.18 Billion in 2023 to USD 162.79 Billion by 2033, at a CAGR of 22.06 % during the forecast period 2023-2033. The rise in popularity of hybrid and electric vehicles, as well as high-drain portable electronics, and energy storage systems, has contributed to the overall market growth.

 

Competitive Landscape

Companies are adopting key strategic initiatives such as acquiring, forming partnerships, and expanding capacity to boost market presence. Albemarle, SQM S.A., Tianqi Lithium, Jiangsu Ronghui General Lithium Industry Co., Ltd., and other companies are key participants in the market. Businesses are engaging in expanding capacity, introducing new products, forming joint ventures, making acquisitions, and establishing partnerships to improve their competitive position in the market. Albemarle Corporation has a significant foothold in North America. Albemarle Corporation is the largest producer of specialty chemicals in the area, operating in three market segments: lithium, bromine, and catalysts. Likewise, the other main actors have developed a solid local presence, strong distribution networks, and diverse product offerings. For instance, in June 2021, Ganfeng Lithium revealed that it would be boosting its Li2CO3 output by 600,000 tons per year to meet the rising demand for the material in electric vehicle batteries. The company plans to raise approximately $630 million by selling new shares to increase capacity and support possible investments.

 

Global Lithium Market Dynamics: Regional Insights and Strategic Developments

The FCAB is headed by the Departments of Energy, Defense, Commerce, and State and consists of numerous government organizations. FCAB unites Federal agencies to ensure a domestic supply of lithium batteries and speed up the growth of a strong and secure domestic industrial base. This plan outlines a way to reach this preferred result. Effective partnerships with American universities, national labs, industry partners, and global allies is a crucial aspect of this plan. Furthermore, The Asia Pacific region is expected to have the biggest portion of the lithium market, mainly because the product is widely used in various industries such as power, consumer electronics, chemical, and general manufacturing. Asia Pacific is experiencing fast growth due to a combination of government efforts and rising foreign investments in the industrial sector. One factor aiding market growth is the easy access to raw materials. There is a high probability that the North American market will experience significant growth throughout the forecast period for the lithium market. Regional growth is on the rise as a result of strict regulatory requirements leading to the increased use of cleaner energy sources. The EPA offers different programs and funding initiatives to promote the use of environmentally friendly energy sources such as solar, wind, and geothermal. The growing use of solar panels has led to a high need for cells and batteries for energy storage. As an example, NASA's technology transfer program replaced aircraft gas-powered engines with LIB packs developed by NASA and various contractor partnerships. These factors will help drive the market expansion in North America.

 

Europe has experienced substantial industrial growth over the past ten years. The primary driver of market growth is the European Union's growing investment in research and development in the automobile, ICT, and healthcare industries. As per the European Automobile Manufacturers Association (ACEA), the market share of battery electric vehicles in Europe is at 12.1%, up from 9.1% in 2021 and 1.9% in 2019.

 

Latin America holds approximately 70% of the globe's lithium reserves, which are utilized in rechargeable batteries for electric vehicles and cell phones. Chile manufactures affordable and high-grade metals. Chile's government is permitting new players into the market as it becomes more consolidated in nature. The Middle East & Africa are projected to experience substantial market expansion due to Saudi Arabia's heightened investment in green energy and tourism. For example, the Saudi government revealed a Battery Chemicals Complex project worth USD 899 million in Yanbu Industrial City to support the growth of clean energy sources in the region.

 

The report provides a summary of the global top trends and future prospects for the global lithium market based on historical data sets (current trends, industry statistics, and emerging trends shaping the lithium industry’s future, preliminary estimates from 2020-2021, 2022, and 2023), as well as projections for the global lithium trends and future prospects for global regions in 2024 and 2025. This data-driven research offers users an industry-wide view of emerging technologies and innovative insights to help them make critical business decisions. 

 

Growth Factors and Emerging Trends in the Lithium Market

 

1. Growing Demand for Lithium Metal in Lithium Batteries

Lithium metal is necessary for lithium-ion batteries and solid-state batteries because it is utilized in making the battery's anode or negative electrode. Lithium metal possesses a high energy density, enabling it to store a significant amount of energy in a compact space and leading to extended operational periods. At present, lithium metal batteries utilize graphite as the anode material, with a restricted ability to store lithium ions. Lithium metal can store ten times more lithium ions than graphite batteries due to its higher specific capacity. Additionally, lithium metal batteries are predominantly utilized in consumer electronics such as watches, toys, and remote controls, with lithium metal serving as the anode material. Therefore, the growing need for lithium metal batteries is anticipated to boost the lithium metal market in the upcoming period.

 

2. Increasing Adoption of Electric Vehicles Will Aid Market Growth 

The EV market will be greatly affected by the changes in the automotive industry in recent years. Electric vehicles are created to substitute traditional modes of transportation due to advancements in technology, reduced carbon emissions, minimal maintenance, smooth driving experience, the ease of home charging, decreased engine noise, and improved fuel efficiency. Electric vehicles aid in decreasing air pollution and greenhouse gas emissions in crowded urban areas. An increase in the need for high-performance, low-emission, and fuel-efficient vehicles as well as stringent governmental regulations regarding vehicle emissions will contribute to the expansion of the electric vehicle market. As per the International Energy Agency (IEA), electric car sales reached approximately 10 million globally in 2022 and are projected to increase by 35% this year, reaching an annual total of 14 million. In 2022, electric cars made up 14% of worldwide car purchases and approximately 4% of the total number of cars in circulation in 2020, with projections to reach 18% by the current year. The demand for electric vehicles is increasing dramatically due to swift technological advancements in electrifying trucks, buses, and two- or three-wheelers.

 

Opportunities and Future Prospects in the Lithium Market

 

Adoption of Lithium Metal in Manufacturing Alloys for High-End Industry

Lithium metal is a light, high-energy density, and very reactive metal, and it is possible to combine it with other metals to enhance their characteristics. Combining lithium with aluminum or magnesium results in lightweight alloys with excellent strength-to-weight ratios and distinct properties, making it perfect for body structures in weight and volume crucial applications. Adding lithium to aluminum boosts its durability and rigidity, while simultaneously lowering its weight. Aluminum-lithium alloys are perfect for constructing aircraft and drone bodies, as they offer better fuel efficiency, increased payload capacity, and superior performance. Therefore, the incorporation of lithium metal into alloys is anticipated to drive growth in the lithium metal sector.

 

List of Key Companies in the Lithium Market

• Albemarle Corporation
• SQM S.A.
• Tianqi Lithium
• Jiangsu Ronghui General Lithium Industry Co., Ltd.
• Ganfeng Lithium Co., Ltd.
• Sigma Lithium
• American Lithium Corp.
• Livent
• Avalon Advanced Materials
• Sayona Mining Limited
• Others

 

Top 5 Key Players Profile in the Lithium Market

 

1. ALBEMARLE CORPORATION

 

Headquarters: Charlotte, NC

Albemarle Corporation is a top specialty chemicals company globally, specializing in lithium, bromine, and catalysts. Founded in 1994 with its main office located in Charlotte, North Carolina, Albemarle has become a significant figure in the lithium sector, providing necessary materials for electric vehicles and energy storage. The company's lithium division has experienced substantial growth, mainly due to its strategic investments in lithium extraction and production facilities across the globe. Albemarle works in multiple industries, delivering creative solutions for energy storage, automotive, and industrial uses. By prioritizing sustainability and embracing technological progress, Albemarle is continuously expanding its presence worldwide and solidifying its position as a top player in the specialty chemicals sector.

 

2. SQM

 

Headquarters: Santiago, Region Metropolitana

SQM, a leading Chilean chemical and mining company, is well-known for its wide range of activities in manufacturing lithium, potassium, and other specialized chemicals. Established in 1968 and based in Santiago, Chile, SQM is a major player in the global lithium market, using its vast lithium reserves in the Atacama Desert to provide essential materials for batteries and other advanced technologies. The company offers a varied range of products such as potassium nitrate, iodine, and lithium that are crucial for agriculture, industrial operations, and energy retention. SQM is dedicated to sustainable methods and technological advancement, constantly investing in cutting-edge extraction processes.

 

3. GANFENGLITHIUM

 

Headquarters: Teaneck, New Jersey

Ganfeng Lithium Co., Ltd., based in China, is a top player in the global lithium industry. Founded in the year 2000, Ganfeng Lithium has expanded to become one of the biggest and most comprehensive lithium manufacturers globally. The company focuses on extracting, processing, and recycling lithium products such as lithium carbonate, lithium hydroxide, and lithium metal, which are essential components for batteries used in electric vehicles, energy storage systems, and consumer electronics. Ganfeng Lithium is well-known for its wide-ranging and varied operations, with lithium resources and production plants located in China, Australia, and Argentina. By making strategic investments and forming partnerships, Ganfeng Lithium is dedicated to promoting innovation, improving sustainability, and increasing its presence worldwide in the fast-growing lithium market.

 

4. ARCADIUM LITHIUM

 

Headquarters: Philadelphia, Pennsylvania, United States

Arcadium Lithium Inc. is a new entrant in the worldwide lithium industry, dedicated to progressing the retrieval and refinement of lithium reserves. Arcadium Lithium, established in 2010 and based in Toronto, Canada, is committed to creating top-notch lithium projects to address the increasing need for energy storage solutions. The enterprise focuses on exploring and developing lithium-rich mineral deposits, with a strong emphasis on eco-friendly practices and innovative technologies. Arcadium Lithium's strategic method involves establishing alliances with top companies and utilizing creative extraction techniques to improve effectiveness and lessen environmental consequences. With the increasing need for lithium, Arcadium Lithium is in a strong position to help meet the global demand for this essential resource, aiding in the shift towards cleaner energy technologies.

 

5. PILBARA MINERALS LIMITED

 

Headquarters: West Perth, WA

Pilbara Minerals Limited is an Australian mining company that focuses on the discovery and extraction of lithium and tantalum. Established in 2005 and based in Perth, Western Australia, Pilbara Minerals is known for its main project, the Pilgangoora Lithium-Tantalum Project, which is considered one of the biggest and most high-quality hard rock lithium deposits worldwide. The company's main focus is on extracting and processing lithium spodumene, which is essential for making high-performance batteries used in electric vehicles and energy storage systems. Pilbara Minerals is dedicated to sustainable and responsible mining practices, focusing on operational excellence and environmental stewardship. Pilbara Minerals remains crucial in meeting worldwide demand for lithium and driving the shift towards cleaner energy technologies with a focus on growth and expansion.

 

Recent Developments

 

• In November 2023, ExxonMobil started drilling its first lithium well in Arkansas, an area known for having large amounts of lithium deposits. It aims to begin producing its initial lithium output in 2027. The goal is to produce enough lithium by 2030 to make batteries for more than one million electric vehicles annually.

 

• In September 2023, Chinese battery manufacturer, Gotion High-tech Co Ltd., declared intentions to construct a lithium battery production facility in Manteno, Illinois, U.S., with an investment of USD 2 billion.

 

• In September 2023, The Office of the Assistant Secretary for Industrial Base Policy finalized a deal with Albemarle for the company's lithium mining and production expansion projects. The deal, valued at $90 million, was approved by the Manufacturing Capability Expansion and Investment Prioritization (MCEIP) office. Albemarle intends to resume operations at its Kings Mountain, N.C. mine sometime between 2025 and 2030, ultimately boosting the domestic lithium production.

 

• In March 2023, Albemarle Corporation revealed the intention to start a new US Lithium Mega-Flex processing plant in South Carolina.

 

• In January 2023, Ganfeng Lithium Co., Ltd. revealed plans to invest USD 2.14 billion in two additional battery factories in order to boost production capacities by 34 GWh. This establishment will contribute to production and is projected to increase to about 100 gigawatt-hours per year.

 

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