Lithium hydroxide is majorly used as downstream material for the manufacturing of lithium-ion batteries. It is used as a cathode material providing high energy density in lithium-ion batteries. Lithium hydroxide based lithium-ion batteries are widely utilized in consumer electronics and electric vehicles owing to advantages such as high storage capacity, lightweight and rechargeability.
The global Lithium Hydroxide Market is estimated to be valued at US$ 0.61 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Increasing demand for electric vehicles around the globe is a major growth driving factor for the lithium hydroxide market. With rising environmental concerns regarding vehicular emissions, governments across various nations are promoting the adoption of electric vehicles. According to International Energy Agency, the global electric car stock crossed 10 million in 2020 growing by over 40% year over year. This shift towards electric mobility is augmenting the consumption of lithium hydroxide lithium-ion batteries.
Strength: Lithium hydroxide has a high demand from various industries like energy storage, electric vehicles, etc. due to its uses in lithium-ion batteries. It is considered an environment-friendly and more sustainable battery material compared to lead-acid batteries.
Weakness: Production of lithium hydroxide requires a significant amount of fresh water and generates toxic waste that needs proper treatment and disposal. The market is highly dependent on a few lithium-producing countries.
Opportunity: Increasing adoption of electric vehicles worldwide is driving the demand for lithium-ion batteries which in turn is boosting the lithium hydroxide market. Rapid growth in renewable energy storage also presents an opportunity for market growth.
Threats: Rising raw material costs and geopolitical issues in key lithium-producing regions can hamper the market growth. Stringent environmental regulations around lithium production pose another threat.
The Global Lithium Hydroxide Market Size is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period, due to increasing demand for electric vehicles and energy storage systems.
Asia Pacific dominated the global lithium hydroxide market in 2022 and is expected to maintain its lead over the forecast period. This can be attributed to high EV adoption and presence of key lithium-hydroxide manufacturing companies in China. North America is projected to exhibit lucrative growth owing to significant investments in lithium projects by the USA and Canada.
Key players operating in the Lithium Hydroxide market are SQM S.A., Albemarle Corporation, Leverton-Clarke Speciality Chemicals., HELM AG, and Ganfeng Lithium Co., Ltd. SQM S.A. is one of the largest lithium producers in the world. Albemarle Corporation offers a variety of products including lithium metal, lithium derivatives, bromine specialties.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it