Published on: July 29, 2024
The global lithium market size is estimated to grow at a CAGR of 25% between 2022 and 2027, driven by factors such as a rise in demand from developing countries and increased demand from the EV industry. However, the lithium market has its own set of challenges such as the rise in availability of substitute products, lack of EV recharging infrastructure, and the toxicity of lithium hydroxide.
Rising vehicle electrification, technological advancements, and expansion in renewable energy storage systems are all contributing to the growth of the lithium market. Lithium batteries are used in many applications, such as automotive, consumer electronics, and power storage. Aside from batteries, lithium is also used in capacitors and fuel cells and in other chemical, industrial, and commercial application.
The lithium market is benefitting from the rising popularity of electric vehicles (EVs), hybrid vehicles, and high-drain portable devices, all of which rely on lithium-ion batteries. Rapid improvements in battery technology and energy storage systems drive the expansion of this market, as do the growing demand for greener energy sources and environmental protection initiatives. Government incentives and regulations promoting cleaner energy solutions create more demand for lithium, and advancements in battery chemistry and energy density benefit the market as well.
Price volatility, driven by factors such as speculation, investor sentiment, and supply-demand dynamics, also impacts the lithium market. Lithium is considered a specialist commodity, susceptible to price swings and investment choices influenced by conjecture. Additionally, ensuring sustainable lithium production and addressing environmental concerns related to mining and processing pose challenges for the industry.
APAC is expected to account for 70% of the global market’s growth during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market, and factors such as the increased demand for lithium products from the automobile, construction, and industrial sectors and the rise in demand for EVs from countries such as China, Japan, India, and Indonesia are expected to fuel the growth of the market in this region. The Chinese government has announced its plan to set up new charging stations for EVs at different places in the country. Japan is home to bestselling EV makers, including Toyota, Honda, and Nissan. Furthermore, the increase in the number of infrastructural projects and construction activities in India, China, Japan, Singapore, Thailand, Indonesia, the Philippines, and other APAC countries is expected to drive the demand for lithium, owing to the increased use of material in the formulation of ceramics and glass.
Technavio's lithium industry reports monitor the leading players in the global market along with their current and forecasted market share. Our analysis covers regional and global companies. Some of the top companies covered in our lithium market reports include:
In order to provide you with a comprehensive view of the lithium industry, our experts analyze the market from many different perspectives. Our reports help identify opportunities, risks, key competitors, and more, helping you make timely, informed decisions to optimize your position in the market.
Technavio reports insights include:
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