Lithium Mining Market size is anticipated to cross USD 750 million by the end of 2035, growing at a CAGR of 8% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of lithium mining was over USD 400 million. The growth of the market over the forecast period can be majorly attributed to the surging industrialization as well as the growing demand for lithium globally with its widespread applications for grid storage, manufacturing heat-resistant glass and ceramics, industrial greases, besides its rising utilization in treatments for bipolar disorder and depression. It was found that the annual production of metal lithium in the major producing countries grew from 25,400 to 85,000 tons between 2008 and 2018.
The expanding utilization of lithium and its compounds in several industrial applications, such as heat-resistant glass and ceramics, lithium grease lubricants, flux additives for iron, steel, and aluminum production, lithium metal batteries, and lithium-ion batteries, consumes over 75% of lithium production, therefore augmenting its demand.
Earlier, lithium and its compounds were extracted from hard rock in Chile, Argentina, and Bolivia but since the 1990s mineral springs, brine pools, and brine deposits had become the dominant source of isolation and extraction of lithium. Lithium extraction, especially for commercial purposes takes place from salt-flat brines through a process of evaporation and chemical recovery. It is also recovered through a process that involves crushing, roasting, and acid leaching from lithium-bearing ores, such as spodumene. Other methods of lithium extraction are currently being investigated to help raise global production. This method includes direct lithium extraction from geothermal and oil well brines.
The growing demand for lithium from the glass & ceramic industries, as well as its rising consumption in the production of Li-on batteries that have widespread use in the automotive sector for battery-powered e-bikes, and EVs, besides energy-storage systems, electrification of tools, and other battery-intensive applications, is anticipated to propel the global lithium mining market over the forecast period. As the research, global lithium consumption in 2021 reached nearly 93kt in 2021.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 400 Million |
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Forecast Year Market Size (2035) |
~ USD 750 Million |
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Regional Scope |
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Application (Batteries, Glass, Air Conditioning Equipment)
The global lithium mining market is segmented and analyzed for demand and supply by application into batteries, glass, air conditioning equipment, and others. Out of these segments, the batteries segment is estimated to gain the largest market share in the year 2035. The growth of the segment can be majorly attributed to the growing production of battery-powered devices smartphones, laptops, tablets, and digital cameras, as well as increasing demand for battery-powered vehicles that need to be powered lithium-ion batteries. According to research, over 71% of the total global lithium demand & utilization contributes manufacturing of rechargeable batteries for electronics, electric vehicles, and grid storage. The growing production of rechargeable, as well as, non-rechargeable batteries that are used in energy storage, smart wearables, consumer electronics, EVs, and others are anticipated to boost the segment growth.
End-user (Automotive, Electronics)
The global lithium mining market is also segmented and analyzed for demand and supply by end-user into automotive, electronics, and others. Amongst these three segments, the electronics segment is expected to garner a significant share in the year 2035. The growth is projected on the back of the rising demand for portable electronics as well as the growing demand for wearable which generally use lithium-based batteries as they have high round-trip efficiency, high energy, and power density, and a low self-discharge rate. The growing global population as well as the rising construction of smart homes is responsible for the demand for consumer electronics, which is indirectly expected to boost the segment growth. As per projections, the global consumer electronics sector is expected earn a revenue of ~ USD 723 billion in 2023, marking a ~31.9% annual increase.
Our in-depth analysis of the global market includes the following segments:
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By Product |
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By Application |
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By End-User |
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APAC Market Statistics
The Asia Pacific lithium mining market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be attributed majorly to the increasing technological advancements as well as the rising exploration of potential lithium reserves in the region along with the augmenting metal mining projects in the region as the maximum lithium in the region comes from ore mining. For instance, Australia with ~2.7 million tons of known lithium reserves, was the world’s second-largest lithium miner in 2018. Moreover, the flourishing automotive industry as well as the growing production of EVs in the region is further expected to boost the market growth in the region. For instance, China is known to control most of the world's lithium-processing plants and as per research, ~75% of the global lithium-ion batteries are made in China owing to its prospering electronics and electric vehicle industries.
North American Market Forecast
The North American lithium mining market, amongst the market in all the other regions, is projected to hold the second-largest share during the forecast period. The growth of the market can be attributed majorly to the increasing government initiatives in the United States to promote the use of renewable energy along with the augmenting demand for battery storage together with the rising sale of solar panels in the region. As per data, in the United States, investment in renewable energy technologies rose from about USD 59 billion in 2019, compared to ~ USD 11.3 billion in 2005. Moreover, as Li-ion batteries are the most scalable type of grid-scale storage, its market has seen strong growth in recent years as it is widely used in many applications, from energy storage to air mobility which is further responsible for the escalation of the lithium mining market in the region.
Europe Market Forecast
Further, the market in Europe, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the growing mining activities in the region to excavate lithium in various regions, including Portugal, Czechia, Finland, Germany, Spain, and Austria. Significant brine resources also exist in Germany. As per the USGS data, Portugal is known to have the largest reserve of lithium in Europe with around 60,000 metric tons of known reserves.
Pilbara Minerals an Australian lithium and tantalite mining company signed an agreement with Sydney-based technology company Calix to develop a new mid-stream refining process to produce lithium salt.
SQM invited R&D centers, universities, and SMEs to propose ideas for electromobility and energy storage progress and reduce the carbon footprint.
Author Credits: Richa Gupta, Harshita Srivastava
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