Lithium Hydroxide Market Size & Share, Application (Lithium-ion Batteries, Lubricants), End-user (Automotive, Electronics, Energy Storage) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2035

  • Report ID: 4972
  • Published Date: Jun 02, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights over 2023-2035

Lithium Hydroxide Market size is slated to cross USD 36 billion by 2035. witnessing around CAGR of 15% from 2023 to 2035. In the year 2022, the industry size of lithium hydroxide was USD 19 Billion. The market growth is attributed to the increasing demand for lithium-ion batteries across the globe. The primary driver of the lithium hydroxide market is the increasing demand for lithium-ion batteries. These batteries are used in electric vehicles (EVs), consumer electronics, renewable energy storage systems, and other applications.

In addition to this, the lithium hydroxide market includes the global industry involved in the production, distribution, and consumption of lithium hydroxide. Lithium hydroxide (LiOH) is an inorganic compound used primarily in the manufacturing of lithium-ion batteries, which are widely used in various industries such as automotive, electronics, energy storage, and portable devices. As the electric vehicle market continues to expand and renewable energy installations increase, the demand for lithium hydroxide is slated to grow significantly.


Lithium Hydroxide Market Size
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Global Lithium Hydroxide Sector: Growth Drivers and Challenges

Growth Drivers

  • Energy Storage Systems: The demand for energy storage systems, including grid-scale and residential batteries, is rising. In the year 2021, the global energy storage installed capacity reached 3.2 gigawatts (GW), a 62% increase compared to the previous year.
  • Renewable Energy Integration: The increasing deployment of renewable energy sources like solar and wind power requires efficient energy storage solutions. Lithium-ion batteries, which utilize lithium hydroxide, are a key technology for renewable energy integration.
  • Government Initiatives and Policies: Governments worldwide are implementing supportive policies and incentives to promote electric vehicles, renewable energy, and energy storage. For instance, countries like China, the United States, and several European nations have introduced subsidy programs.

Challenges

  • Limited Lithium Reserves: Lithium reserves are limited and concentrated in a few countries, primarily Australia, Chile, and China. The extraction and processing of lithium minerals are complex and time-consuming processes. As the demand for lithium hydroxide increases, there is a need to ensure a stable and diversified supply chain to meet market demands.
  • Environmental Concerns
  • Cost and Price Volatility

Lithium Hydroxide Market: Key Insights

Base Year

2022

Forecast Year

2023-2035

CAGR

~15%

Base Year Market Size (2022)

~USD 19 Billion

Forecast Year Market Size (2035)

~USD 36 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of Middle East and Africa)
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Lithium Hydroxide Segmentation

Application (Lithium-ion Batteries, Lubricants)

The lithium-ion batteries segment is predicted to gain the largest market share in the year 2035. The segmental growth is owing to technological advancements and cost reduction. Continuous technological advancements and economies of scale are driving down the costs of lithium-ion batteries, making them more affordable and competitive. The average lithium-ion battery pack prices have decreased by 89% from 2010 to 2021, reaching around USD 137 per kilowatt-hour. Further cost reductions are expected with ongoing research and development, advancements in battery chemistry, and improved manufacturing processes.

End Use Industry (Automotive, Electronics, Energy Storage)

The automotive segment is poised to gain a major share by the year 2035. The growth of the segment is augmented by government regulations and incentives. Governments worldwide are implementing regulations and offering incentives to promote the adoption of electric vehicles (EVs) as a means to reduce greenhouse gas emissions and combat climate change. Various countries have set targets and timelines to phase out internal combustion engine vehicles, creating a favorable regulatory environment for electric vehicles. Growing concerns about climate change and the environmental impact of traditional combustion engine vehicles has led to an increased focus on sustainable transportation alternatives.

Our in-depth analysis of the lithium hydroxide market includes the following segments:

           Application

  • Lithium-ion Batteries
  • Lubricants

         End Use Industry

  • Automotive
  • Electronics
  • Energy Storage

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Global Lithium Hydroxide Industry Regional Synopsis

APAC Market Forecast

The lithium hydroxide market in the Asia Pacific region is projected to hold the largest market share by 2035. The regional growth is fueled by strong manufacturing and battery production. The Asia Pacific region is known for its robust manufacturing capabilities and established battery production infrastructure. Countries like China, South Korea, and Japan are leading manufacturers of lithium-ion batteries, which require lithium hydroxide as a critical raw material. The presence of major battery manufacturers and their expansion plans in the region contribute to the growing demand for lithium hydroxide.

North America Market Statistics

The lithium hydroxide market in the North American region is slated to hold a significant share during the forecast timeline. The growth of the market in this region can be ascribed to advancements in energy storage technologies. Research and development efforts in North America are focused on advancing energy storage technologies, including lithium-ion batteries, to enhance performance, reduce costs, and increase energy density. Collaborations between industry players, research institutions, and government agencies are driving innovation in battery chemistry, manufacturing processes, and materials, which positively impacts the growth of the segment in the global lithium hydroxide market.

Research Nester
Lithium Hydroxide Market
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Companies Dominating the Lithium Hydroxide Landscape

top-features-companies

    Key Players

    • Albemarle Corporation
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • SQM (Sociedad Química y Minera de Chile)
    • Livent Corporation
    • Ganfeng Lithium Co., Ltd.
    • Tianqi Lithium Corporation
    • Jiangxi Ganfeng Lithium Co., Ltd.
    • FMC Corporation
    • Lithium Americas Corp.
    • China Lithium Products Technology Co., Ltd.
    • Galaxy Resources Limited

In the News

  • Albemarle Corporation: Albemarle announced plans to expand its lithium hydroxide production capacity at its Silver Peak facility in Nevada, United States. The company aims to increase its annual production capacity to meet the growing demand for lithium hydroxide in electric vehicle batteries and other applications. The expansion is part of Albemarle's strategy to strengthen its position as a leading global lithium producer.
  • Ganfeng Lithium Co., Ltd.: Ganfeng Lithium signed a long-term supply agreement with BMW Group. Under the agreement, Ganfeng will supply lithium hydroxide to BMW for use in its electric vehicle batteries. The partnership aims to ensure a stable supply of lithium hydroxide and support BMW's plans to further expand its electric vehicle lineup.

Author Credits:  Smruti Ranjan, Rajrani Baghel


  • Report ID: 4972
  • Published Date: Jun 02, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand for lithium-ion batteries across the globe is the major factor driving the market growth.

The market size of lithium hydroxide is anticipated to attain a CAGR of ~15% over the forecast period, i.e., 2023 – 2035.

The major players in the market are Albemarle Corporation, SQM (Sociedad Química y Minera de Chile), Livent Corporation, Ganfeng Lithium Co., Ltd., Tianqi Lithium Corporation, and others.

The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by application, end use industry, and by region.

The lithium-ion batteries segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.

The limited lithium reserves is estimated to be the growth hindering factor for the market expansion.

The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Lithium Hydroxide Market Report Scope
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