Lithium Mining Market

Lithium Mining Market Snapshot (2022-2032)

[250 Pages Report] The global lithium mining market is expected to secure US$ 1.66 Billion in 2022. From 2022-2032, the lithium mining market is projected to exhibit a CAGR of 7.43% while garnering a market value worth US$ 3.4 Billion.

• Rising technological advancements & extensive use in air treatment fuel the market growth
• Installation of a mobile lithium extraction machine minimizes the installation cost
• Extensive application in glass and ceramic manufacturing to boost global sales
• Rising emergence of EVs has bolstered the demand for lithium-ion batteries.

During the period ranging from 2020 to 2022, lithium mining demand prospects flourished at a stellar rate, supported by a shift in the design and advancement of battery technology. There has been rising concern about the declining availability of fossil fuels, increasing carbon emissions, and an emphasis on alternative sources of power that have been worked on for a significant tenure. This void was gradually overcome with the latest advancements and development of cutting-edge technologies to reduce the cost of vehicles. since mid-2021, leading to a resurgence in growth projections.

As per the recently published IEA report, sales of electric cars topped 2.1 million worldwide in 2021, surpassing 2020 to boost the stock to 7.2 million EVs. Electron cars which accounted for 2.6% of the overall car sales and about total car stock in 2022, registered a 40% Y-o-Y increase. As technology progresses in cars, bikes, and buses, the market for them grows electric vehicles are expanding significantly. This, in turn, will augment sales of lithium batteries. As per this report, demand for Lithium Mining for automotive production is expected to surge at over 7.43% CAGR until 2026.

Continuous Growth in Electronics Industry to provide a Strong Base for Lithium Mining Manufacturers in the Asia Pacific

The Asia Pacific is anticipated to yield significant growth opportunities, backed by increasing lithium production in various countries. In 2022, the contribution of Australia is expected to increase by 24% to 68 thousand tons (kt) in 2022.

By 2032-end, the lithium mining industry is forecasted to register a growth rate of 7.4%. Within the Asia Pacific, Australia produces more than half of the world’s lithium. Another lucrative country is China, which also exports lithium to countries including the US, Japan, and India. The significant contribution of China can be attributed to the large consumer base of electronic vehicles, and the availability of production facilities for electrical and electronics. This entails an expansion of electronic items production capabilities, which will attract key Lithium Miners.

Opportunities abound in the Machinery Segment

Besides the increasing hard rock mining activities, the concentrate segment is anticipated to expand significantly. Also, continuing technological development in brine manufacturing and growing production of chloride are likely to contribute significantly during the forecast period. Owing to these factors, the demand for Lithium Mining will soar across the machinery industry, expected to register a CAGR of 7.43% by 2032.

The lithium market is expected to be in surplus for the next few years, owing to the commencement of various key upcoming projects including Kathleen Valley, Cauchari-Olaroz, Mount Finniss, and Salar del Hombre. With the market expansion of lithium mining, several players like Medaro Mining, a Canadian junior lithium explorer is making significant investments in developing cutting-edge technology for the mining industry. The technology could be the key to unlocking a new treasure trove of lithium from hard rock mining.

The launch of new products in the market is expected to augment the market size in the forecast period. For instance, in 2022, Luminous launched the New Age Li-ON series integrated inverter with a Lithium-ion battery. The novel product launched streamlines with an ‘integrated approach to science and technology, for a sustainable future’. Such factors are expected to benefit the market during the forecast period.

Additionally, favorable initiatives by the government of various countries are anticipated to be another significant factor that can drive industry growth in the forecast period.

For instance, in August 2022, the Brazilian government announced the unlimited overseas trade of lithium minerals, ores, and their derivatives through a government decree issued by the Ministry for Mines and Energy (Ministerio de Minas e Energia). Attributed to such initiatives, the market will experience various remunerative opportunities for growth in the forecast period.

Nikhil Kaitwade

Principal Consultant

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Global Lithium Mining Market Revenue Analysis 2017-2021 Vs Future Outlook 2022-2032

The global lithium mining market is expected to have displayed a CAGR of 7% from 2017-2021. The expansion of the market can be attributed to the increasing application of lithium in air treatment. Lithium is used in cooling, air regeneration, and dehumidification. Hospitals, shopping malls, and other institutional facilities employ absorption chillers as their source of air conditioning.

Space vehicles, safety devices, submarines, and miners, possess systems to eradicate carbon dioxide from the human exhaust. The increasing application of lithium in air treatment applications is anticipated to have played a significant role in developing the market during the forecast period.

From 2022-2032, the global lithium mining market is projected to exhibit a CAGR of 7.43%. The growth of the market can be attributed to the increasing demand for EVs. Lithium-ion batteries are being used in electric vehicles because of their high energy per unit mass relative to other electrical energy storage systems.

Further, they also have a high power-to-weight ratio, good high-temperature performance, high energy efficiency, and low self-discharge.

Moreover, players in the market are taking various initiatives to launch new products in the market which will benefit the industry during the forecast period. For instance, in July 2022, Ola Electric announced the unveiling of India’s first indigenously developed lithium-ion cell. NMC 2170. SoftBank-backed Ola will commence the mass production of its cell at its upcoming Gigafactory by 2023.

What Are The Factors Contributing To The Growth Of The Lithium Mining Market?

Increasing Demand for Electric Vehicles to Drive the Lithium Mining Market

As per International Energy Agency’s Global EV Outlook 2020, sales of electric cars topped 2.1 million worldwide in 2019, exceeding 2018 to boost the stock to 7.2 million EVs. With increased technological development in the electrification of two/three-wheelers, trucks, and buses, electric vehicles are gaining significant traction during the forecast period.

Governments across the globe are taking various initiatives to encourage the application of EVs which will benefit the market in the forecast period. For instance, the Indian government offers subsidies on vehicles such as US$ 125.90 per kWh for the first 10000 EV purchase.

In 2019, the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme provided US$ 188 per kWh for a two-wheeler purchase. Such favorable initiatives are expected to benefit the industry during the assessment period.

What Are The Factors Hampering The Global Lithium Mining Market?

Adverse Environmental Impacts Associated with Lithium Mining to Hamper the Market

Lithium mining involves mining from rocks and brines. Processing of mine metal is performed by evaporating brine and washing with sodium carbonate in PVC-lined shallow ponds, which is held responsible for water pollution. It also impacts groundwater quality and increases issues associated with water scarcity.

This type of mining also results in dust pollution wherein small Li-particles are suspended in the air. Extended exposure to Li-dust can result in serious respiratory tract disorders. Such factors are anticipated to hamper the market growth in the forthcoming time.

What Are The Prevailing Opportunities In The Global Lithium Mining Market?

Increasing Demand for Lithium in Glass and Ceramic Manufacturing to Offer Remunerative Opportunities to the Lithium Mining Market

Increasing application of lithium compounds such as spodumene and carbonate in glass and ceramics for the manufacturing of enamels and glazes have witnessed growing application to lower firing temperatures and thermal expansion, the growing strength of ceramic bodies and development in viscosity for coating, boosting the glaze’s color, luster, and strength.

The most renowned application of the metal is for the manufacturing of glass-ceramic cooktops, where thermal expansion and thermal resistance are not important. The rising demand for Li-based ceramics and glasses is projected to offer significant opportunities for growth to the market in the forecast period.

Players in the market are taking various initiatives to offer new products in the market during the forecast period. In March 2022, Gogoro, an electric scooter manufacturer, unveiled a prototype lithium ceramic solid-state battery for two-wheel battery swapping.

The prototype has been jointly developed by Gogoro and solid-state battery specialist ProLogium Technology and integrates with Gogoro’s existing vehicles and battery swap network. Attributed to such factors, the lithium mining market is expected to experience various opportunities for growth during the forecast period.

Segmental Analysis

By Type, which Lithium Mining Category is likely to outmaneuver others?

Lithium Carbonate Mining to acquire major precedence, thanks to its ease of production

As per the analysis, the carbonate segment is anticipated to exhibit a CAGR of 8% during the forecast period. The development of the segment can be attributed to the increasing hard rock and brine activities. It is easy to produce, therefore, contributes to the maximum of the metal produced.

Furthermore, with increasing hard rock mining activities across the globe, the concentrate segment is anticipated to expand significantly. Also, ongoing technological development in brine manufacturing and increasing production of chloride are expected to contribute significantly during the forecast period.

Why Lithium Mining Source is expected to be Most Preferred?

Brine Lithium to be highly sought after; Hard Rock Lithium to garner popularity

Brine lithium is projected to experience significant growth opportunities. The huge potential along with ongoing technological development in brine manufacturing is projected to support segmental growth during the forecast period. The segment is likely to account for 65% of the lithium mining market revenue during the forecast period.

At the same time, according to the study, the hard rock segment is expected to hold a significant portion of the market during the forecast period. According to Future Market Insights, the segment is expected to account for 35% revenue in 2022.

Regional Analysis

How is Increasing Lithium Production in the Asia Pacific Driving the Lithium Mining Market?

According to the analysis, Asia Pacific, which includes East Asia and South Asia, is anticipated to be the most lucrative market during the forecast period. In 2022, the region is likely to acquire a revenue share worth 28%. The rapid development of the region can be attributed to the increasing lithium production in various countries. In 2022, the contribution of Australia is expected to increase by 24% to 68 thousand tons (kt) by 2022.

Australia produces more than half of the world’s lithium. Another lucrative country is China, which also exports lithium to countries including the US, Japan, and India. The significant contribution of China can be attributed to the large consumer base of electronic vehicles, and the availability of production facilities for electrical and electronics.

Moreover, the contribution of regional players is of major significance. For instance, in 2022, BYD, the Chinese automaking giant, announced the release of a premium EV. Such initiatives are expected to benefit the lithium mining market in the Asia Pacific during the forecast period.

How are the Favorable Initiatives by the European Government Developing the Lithium Mining Market?

According to the analysis, the market in Europe is anticipated to display a CAGR of 4.8% during the forecast period. The growth of the regional market can be attributed to the favorable initiatives taken by the governments which will drive the demand for lithium-ion.

Among all, Portugal is expected to make the maximum contribution to developing the regional market. Also, Portugal’s environment ministry approved the extraction of ‘white gold’ in six separate regions despite people’s protests against the mining of the metal. The country has already issued various licenses to mine lithium. Attributed to such factors, the lithium mining market in Europe is expected to flourish during the forecast period.

Is Increasing Adoption of EVs Strengthening the Lithium Mining Market in North America?

As per the study, North America is likely to expand at a CAGR of 5% during the forecast period. The expansion of the regional market can be attributed to the increasing adoption of EVs in the region. The US and Canada are likely to make the maximum contribution to developing the regional market. The study reveals that by the start of 2022 the U.S had about 4.6% of EVs.

In addition, players in the market are taking various initiatives to launch new products. For instance, in 2022, Volkswagen Group announced the launch of 25 new EVs in North America by 2030. At that point, EVs are likely to account for 55% of the total sales. Attributed to such factors, the lithium mining market in North America is expected to flourish significantly during the forecast period.

What Is The Contribution Of Startups In Developing The Lithium Mining Market?

Pilbara Minerals (Australia), Allkem (Australia), Livent (USA), Youngy (China), Nemsaka Lithium (Canada), Minera Del Atiplano (USA), and BuLi Chemicals India Pvt. Ltd. are some of the emerging names in the global lithium mining market.

Recent Updates from the Lithium Mining Start-ups Landscape:

• In May 2022, Pilbara Minerals and Calix secured grants worth US$ 14 Million for lithium projects in Australia. The grant was awarded by the Australian Government under the Modern Manufacturing Initiative. It will be used by the partners to develop a demonstration-scale chemicals facility at the project.

Competition Analysis

Key players in the global lithium mining market include Albemarle, Ganfeng Lithium, Orocobre limited, Sichuan Tianqi Lithium Industries, SQM, and Lithium Americas Corp.

News from the Lithium Mining Market:

• In September 2021, Albemarle Corporation announced that its subsidiary, Albemarle Lithium UK Limited inked an agreement to acquire all the outstanding equity of Guangxi Tianyuan New Energy Materials, a lithium converter located in China. As per the agreement, Albemarle will acquire all outstanding equity from Tianyuan’s shareholders for approximately US$ 200 million.
• In January 2022, Lithium Americas Corp. concluded its acquisition of Millennial Lithium Corp., pursuant to a court-approved plan of arrangement under the Business Corporations Act (British Columbia) for about US$ 491 Million.

Report Scope

Key Segments Profiled In The Lithium Mining Market

By Source:

• Brine
• Hard Rock
• Others

By Type:

• Lithium Carbonate
• Lithium Hydroxide

By Application:

• Battery
• Ceramics and Glass
• Lubricants & Grease
• Polymer
• Flux Powder
• Refrigeration
• Others

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia Pacific
• Middle East and Africa