The global lithium market was valued at more than 400 LCE kiloton in 2021. The market is estimated to increase at a CAGR greater than 19% during the forecast period (2022 to 2027). For the foreseeable future, lithium-ion will be the leading technology in the electric vehicle (EV) industry.
New York, June 08, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Lithium Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027)” – https://www. reportlinker.com/p06246211/?utm_source=GNW
With the surging fuel prices across the world and increasing pollution levels in the environment, many countries across the globe have started investing in lithium-ion technology which is used as a substitute for conventional fuel vehicles in the market. With lesser manufacturing costs and high-performance delivery, lithium batteries are considered to be the best choice in modern electric vehicles. With growing applications of lithium batteries in aerospace and military operations, the market is considered to grow in the forecasted period.
Major factors driving the market studied are the accelerating demand for electric vehicles? and increasing usage and demand by portable consumer electronics?.?
On the flip side, concern over the demand-supply gap in the lithium market might hamper the market growth. ?
Whereas the growing adoption of smart grid electricity is likely to be a major opportunity in the global lithium market over the forecast period.?
Key Market Trends
Electric Vehicles to Drive the Market Growth
The automobile industry is quickly evolving, pushing companies to cope with new issues on a regular basis. Electric vehicle demand is growing throughout the world, while buyers also desire automobiles with greater customization possibilities.
EV sales have exploded, with increases in all three major car markets: China, the United States, and Europe.
Despite the disruption created by Covid-19, the EV market has been able to thrive, displaying its resilience. This has been aided by political incentives. In the United States, for example, President Joe Biden announced a USD 174 million investment to encourage electric car adoption, from charging infrastructure to boosting the federal tax credit, as well as his proposed new objective of 50% electrification by 2030.
While total UK car manufacturing fell by over 7% to 859,575 cars in 2021, the lowest level since 1956, the number of electric vehicles produced climbed by over 30% over the previous year, according to the Society of Motor Manufacturers and Traders’ (SMMT ) end-of-year report.
By 2030, the UK government intends to prohibit the sale of new internal combustion engine (ICE) automobiles, with the exception of hybrid versions that utilise both electric and gas power by 2035. According to the SMMT, if the UK automobile manufacturing sector is to stay internationally competitive, it will require at least 60 GWh of gigafactory battery capacity by 2035.
All the above said factors are expected to increase the demand for lithium in the electric vehicles segment.
Asia-Pacific Region to Dominate the Market
In recent years the Asia Pacific area, the electric car sector has seen tremendous growth. This is evidenced by the fact that the area accounts for the greatest percentage of global battery electric car sales.
In the first half of 2021, China’s output and newly installed capacity for power batteries increased year over year, owing to a significant expansion in the country’s new energy vehicle (NEV) industry.
According to the China Automotive Manufacturers Association (CAAM), the total output of power batteries increased by 217.5 percent year on year to 74.7GWh in January-June 2021. In the first half of 2021, installed volumes increased by 200.3 percent to 52.5 GWh.
The top three firms for installed volumes during January-June 2021 were China’s largest battery producer CATL, second-largest battery and NEV manufacturer BYD, and South Korean battery producer LG Chem, with 25.76GWh, 7.65GWh, and 4.72GWh, respectively, accounting for 49.1%, 14.6%, and 9% of the total.
Demand in the consumer electronics industry was strong, but it was also mature and stable. Makers of storage solutions for homes, industries, and hospitals, as well as 5G mobile stations, place a high demand on battery manufacturers and, as a result, machinery providers.
All these factors are expected to see a rise in demand for the lithium ion market in the forecasted years
The global lithium market is consolidated in nature with the top five players holding more than 80% share of the global production outputs. Some of the major players in the market include (not in any particular order) Albemarle Corporation, SQM SA, Tianqi Lithium, Livent, and Allkem Limited, among others.
The market estimate (ME) sheet in Excel format
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