Market Size of Lithium Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR (2024 - 2029) | 19.57 % |
Fastest Growing Market | Europe |
Largest Market | Asia-Pacific |
Market Concentration | High |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Lithium Market Analysis
The Lithium Market size is estimated at 0.71 Million LCE tons in 2024, and is expected to reach 1.72 Million LCE tons by 2029, growing at a CAGR of 19.57% during the forecast period (2024-2029).
The market was negatively impacted by COVID-19 in 2020, as the first half of the year was affected by the lockdowns, causing unprecedented declines in monthly vehicle sales from February. Presently the market has reached pre-pandemic levels.
- Over the short term, the major factors driving the market studied are the accelerating demand for electric vehicles and increasing usage and demand for portable consumer electronics.
- However, rising concern over the demand-supply gap in the lithium market may hamper the market growth.
- Nevertheless, the growing adoption of smart grid electricity is likely to be a major opportunity in the global lithium market over the forecast period.
- Asia-Pacific dominates the market across the world, with the most substantial consumption from countries like China, South Korea, and Japan.
Lithium Industry Segmentation
Lithium is a soft, silvery-white alkali metal with atomic number three and the symbol Li. The main sources of lithium are underground lithium-containing brine reservoirs and lithium-containing rocks, 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 16 countries across major regions. For each segment, the market sizing and forecasts have been carried out on the basis of volume (lithium carbonate equivalent (LCE) kilotons).
Type | |||||
Metal | |||||
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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 | |||||||||||||||||||||||||||||||||
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Lithium Market Size Summary
The lithium market is poised for significant growth, driven by the increasing demand for electric vehicles and the rising use of portable consumer electronics. The market, which experienced a downturn due to the COVID-19 pandemic, has rebounded to pre-pandemic levels. The Asia-Pacific region, particularly China, South Korea, and Japan, dominates the global market, with substantial consumption driven by the automotive and electronics industries. Lithium's primary application is in the production of lithium batteries, which are categorized into disposable and rechargeable types. These batteries are favored for their long life, high energy density, and versatility in applications ranging from medical devices to consumer electronics and electric vehicles. The growing adoption of smart grid electricity presents further opportunities for market expansion.
The global lithium market is characterized by a consolidated structure, with a few key players controlling a significant portion of the production output. Companies like Albemarle Corporation, SQM SA, Tianqi Lithium, Livent, and Allkem Limited are prominent in the industry. Recent strategic moves by these companies, such as investments in production capacity and partnerships to establish supply chains, underscore the industry's focus on meeting the burgeoning demand for lithium-ion batteries. The market's growth is also supported by the increasing penetration of electric vehicles, particularly in China, where the government anticipates a substantial rise in electric vehicle production. This trend is mirrored in South Korea and Japan, where consumer demand for alternative fuel technologies is on the rise, further fueling the demand for lithium.
Lithium Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Drivers
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1.1.1 Accelerating Demand for Electric Vehicles
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1.1.2 Increasing Usage and Demand by Portable Consumer Electronics
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1.1.3 Other Drivers
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1.2 Restraints
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1.2.1 Demand-supply Gap in the Lithium Market
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1.2.2 Other Restraints
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1.3 Industry Value Chain Analysis
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1.4 Porter's Five Forces Analysis
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1.4.1 Bargaining Power of Suppliers
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1.4.2 Bargaining Power of Buyers
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1.4.3 Threat of New Entrants
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1.4.4 Threat of Substitute Products and Services
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1.4.5 Degree of Competition
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1.5 Pricing Analysis
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1.6 Technological Snapshot
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Metal
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2.1.2 Compound
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2.1.2.1 Carbonate
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2.1.2.2 Chloride
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2.1.2.3 Hydroxide
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2.1.3 Alloy
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2.2 Application
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2.2.1 Battery
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2.2.2 Grease
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2.2.3 Air Treatment
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2.2.4 Pharmaceuticals
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2.2.5 Glass/Ceramic (Including Frits)
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2.2.6 Polymer
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2.2.7 Other Applications
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2.3 End-user Industry
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2.3.1 Industrial
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2.3.2 Consumer Electronics
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2.3.3 Energy Storage
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2.3.4 Medical
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2.3.5 Automotive
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2.3.6 Other End-user Industries
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2.4 Geography
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2.4.1 Production and Reserve Analysis
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2.4.1.1 Australia
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2.4.1.2 Chile
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2.4.1.3 China
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2.4.1.4 Argentina
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2.4.1.5 Zimbabwe
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2.4.1.6 United States
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2.4.1.7 Other Regions
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2.4.2 Consumption Analysis
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2.4.2.1 Asia-Pacific
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2.4.2.1.1 China
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2.4.2.1.2 India
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2.4.2.1.3 Japan
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2.4.2.1.4 South Korea
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2.4.2.1.5 Australia & New Zealand
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2.4.2.1.6 Rest of Asia-Pacific
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2.4.2.2 North America
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2.4.2.2.1 United States
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2.4.2.2.2 Canada
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2.4.2.2.3 Mexico
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2.4.2.3 Europe
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2.4.2.3.1 Germany
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2.4.2.3.2 United Kingdom
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2.4.2.3.3 France
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2.4.2.3.4 Italy
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2.4.2.3.5 Nordic Countries
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2.4.2.3.6 Rest of Europe
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2.4.2.4 South America
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2.4.2.4.1 Brazil
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2.4.2.4.2 Argentina
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2.4.2.4.3 Rest of South America
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2.4.2.5 Middle East and Africa
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2.4.2.5.1 Saudi Arabia
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2.4.2.5.2 South Africa
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2.4.2.5.3 Rest of Middle East and Africa
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Lithium Market Size FAQs
How big is the Lithium Market?
The Lithium Market size is expected to reach 0.71 million LCE tons in 2024 and grow at a CAGR of 19.57% to reach 1.72 million LCE tons by 2029.
What is the current Lithium Market size?
In 2024, the Lithium Market size is expected to reach 0.71 million LCE tons.