The lithium hydroxide market has witnessed significant growth over the past few years owing to increased use of lithium-ion batteries in electric vehicles and energy storage systems. Lithium hydroxide is a key component used in the manufacturing of lithium-ion batteries. It provides high energy density and rechargeability, making lithium-ion batteries ideal for powering electric vehicles and storing electricity generated from renewable energy sources. With the increasing global focus on reducing carbon emissions and adoption of clean energy, the demand for lithium-ion batteries is expected to grow substantially over the coming years.
The global Lithium Hydroxide Market is estimated to be valued at US$ 2.13 billion in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising demand for electric vehicles is a major factor driving the growth of the lithium hydroxide market. According to the International Energy Agency (IEA), global electric car stock reached 10 million in 2020, up from 7.2 million in 2019. China remains the largest electric car market with around 4.5 million electric passenger cars on the road by the end of 2020. In order to achieve carbon emission reduction targets, many countries are aggressively promoting electric vehicles through regulatory mandates and fiscal incentives. This is expected to fuel the demand for lithium-ion batteries and lithium hydroxide over the coming years.
SWOT Analysis
- Strength: Lithium hydroxide has wide applications in batteries used in various industries such as automotive, industrial, and consumer electronics. It is an important raw material for manufacturing lithium-ion batteries.
- Weakness: Availability of raw material sources for lithium hydroxide production is limited to few countries. Also, high capital investment is required for production facilities.
- Opportunity: Growing demand for electric vehicles and increasing focus on renewable energy is driving the need for large format lithium-ion batteries. This offers opportunities for lithium hydroxide manufacturers.
- Threats: Fluctuations in raw material prices can impact production costs. Also, trade wars and geopolitical issues pose challenges.
Key Takeaways
The global lithium hydroxide market is expected to witness high growth. The global Lithium Hydroxide Market is estimated to be valued at US$ 2.13 billion in 2024 and is expected to exhibit a CAGR of 8.4% over the forecast period 2024-2031.
Regional analysis related content comprises Regional analysis related content: Asia Pacific dominates the global lithium hydroxide market currently owing to significant presence of battery manufacturers in China, Japan, and South Korea. China is the largest producer and consumer of lithium hydroxide.
Key players related content comprises Key players related content: Key players operating in the lithium hydroxide market are FMC, SQM, Rockwood Lithium, Simbol Materials, Tianqi Lithium, and Ganfeng Lithium. FMC is one of the largest producers of lithium compounds including lithium hydroxide. It has manufacturing facilities located in America and Europe.
