SAN FRANCISCO, Nov. 16, 2021 /PRNewswire/ -- The global lithium market size is expected to reach USD 8.2 billion by 2028, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 14.8% from 2021 to 2028. Rising investments in lithium mining and related technologies are projected to remain a key trend for the market.
Key Insights & Findings:
In terms of revenue, the hydroxide product segment is projected to register the highest CAGR of 20.9% from 2021 to 2028. The rapid development of battery technologies is projected to remain a key driver for the market
Automotive emerged as the largest segment and accounted for a volume share of over 43.0% in 2020. The rising penetration of electric vehicles along with stringent emission regulations by government bodies is the key focus area for market vendors
The consumer electronics segment is projected to witness the highest CAGR over the forecast period in terms of revenue on the account of rising demand for electronic products such as smartphones, tablets, laptops, wearables, portable speakers, and tablets
Asia Pacific was the largest regional market in 2020, in terms of both volume and revenue. The growth of the region is led by investments in lithium mining as well as lithium-ion battery technologies
In Europe, the market accounted for the second-largest market share in 2020. The growth of the region is attributable to the rising penetration of electric vehicles and growing concerns about greenhouse gas emissions
Lithium mining is witnessing rapid growth as its demand is accelerating owing to its application in batteries. The element is found in dry places that require thousands of liters of water for its mining. Considering the rising demand for elements and increasing usage of water required for its extraction, R&D is in place to find better alternative methods. For instance, in February 2020, funding of around USD 20 million by Bill Gates was provided to Lilac Solutions, a lithium mining technology firm located in the U.S. The investment was announced in February 2020. According to the firm, its ion exchange technology is two times more efficient compared to the current mining process and requires a fraction of time.
Lithium recycling is a complex process; however, with the rising penetration of lithium-ion batteries, the demand for lithium may outpace supply. Therefore, researchers are focusing on the extraction and recycling of lithium through various new technologies. Lithium compounds are extracted from batteries as per individual methods and stages. The stages are divided into pre-treatment and extraction stages; while extraction is again categorized into hydrometallurgy, pyrometallurgy, and electrochemical extraction. Despite the growing emphasis and development of different recycling technologies, less than 1% of lithium is recycled currently.
Over the last decade, the rise in usage of lithium-ion battery storage has led to a decline in their prices by over 80%, leading to enhanced energy storage and paving the way for electric vehicles to be commercially viable. Government regulations and subsidies are working on expanding clean energy; thus, energy storage systems represent a huge opportunity for investors. However, expensive raw materials required to produce energy storage systems may remain a critical factor for investors.
As per the International Energy Agency, new companies in clean energy have attracted significant investments during COVID-19. Early-stage Venture Capital (VC) investments reduced slightly in the first half of 2020. However, these investments recovered quickly, with record investments from the third quarter of 2020.
Grand View Research has segmented the global lithium market on the basis of product, application, and region:
Portable Lithium Power Station Market– The global portable lithium power station market size is expected to reach USD 282.0 million by 2028, according to a new study conducted by Grand View Research, Inc. It is expected to expand at a CAGR of 13.2% from 2021 to 2028.
Automotive Battery Market– The global automotive battery market size is anticipated to reach USD 95.57 billion by 2025, according to a new report by Grand View Research, Inc., registering a CAGR of 7.9% during the forecast period.
Lithium Iron Phosphate Battery Market– The global lithium iron phosphate battery market size is projected to reach USD 15.24 billion by 2027, expanding at a CAGR of 15.2% from 2020 to 2027, according to a new report by Grand View Research, Inc.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.