The global lithium market to grow at a CAGR of 8.07% during the period 2017-2021.
The report covers the present scenario and the growth prospects of the global lithium market for 2017-2021. To calculate the market size, the report considers the retail selling price as the average selling price for the product. The report also includes a discussion of the key vendors operating in this market.
The latest trend gaining momentum in the market is demand for lithium-ion batteries in grid-connected storage. The demand for lithium-ion batteries is high, especially in grid-connected storage. This has increased with the growth in the demand-supply gap in the electricity sector. Lithium-ion batteries have the capacity to store a considerable amount of power, and the stored power can be supplied to the grid during peak hours. This characteristic of lithium-ion batteries is driving the market growth. Therefore, the increase in the use of lithium-ion batteries for grid-connected storage will boost the demand for lithium, thereby driving the market growth.
According to the report, one of the major drivers for this market is environment-friendly nature of lithium-ion batteries. Reducing carbon emissions and dependence on oil are the major factors that can be attributed to the shift from fuel or gasoline vehicles to EVs. Although EVs equipped with lithium-ion batteries are costlier, they are a one-time investment for the customers. The automotive industry has become a focal point when considering the impact of automobiles on the environment. The use of lithium-ion batteries in EVs helps in reducing global warming by curbing carbon dioxide emissions from vehicles. The vehicles are cost-effective as they reduce the consumption of gasoline and diesel.
Further, the report states that one of the major factors hindering the growth of this market is safety and risks. Lithium-ion batteries have found their use in almost all consumer electronic products. Improvements are required in terms of safety and durability. Currently, lithium-ion batteries are costlier than lead-acid batteries and nickel-metal hydride batteries. Lithium-ion battery development offers important synergies with other clean energy value chains.