The global lithium market size was USD 3.64 billion in 2020 and is projected to grow from USD 3.83 billion in 2021 to USD 6.62 billion in 2028 at a CAGR of 8.1% during the 2021-2028 period.
Lithium-ion batteries are heavily relied upon to power smartphones, laptops, and other portable gadgets, as well as aid energy storage and release in EVs. The market for this element is growing rapidly, with Fortune Business Insights™ estimating that the global lithium market size will reach USD 8.24 billion by 2027, exhibiting a CAGR of 9.2%.
The future of the lithium industry is looking bright, with demand for lithium expected to increase exponentially in the coming years.
- The rise of electric vehicles: The increasing popularity of electric vehicles is driving demand for lithium-ion batteries, which require lithium to function. This is one of the main reasons why demand for lithium is expected to grow significantly in the coming years.
- Energy storage: Lithium-ion batteries are also used for energy storage, such as in residential and commercial buildings, as well as in the power grid. As the world transitions towards renewable energy sources, such as wind and solar, the need for energy storage solutions will become more critical, further driving demand for lithium.
- Investment in lithium mining: With demand for lithium set to grow, there is a significant amount of investment going into the mining of lithium. Major mining companies are ramping up production, and new mining projects are being developed around the world.
- Advancements in lithium extraction: As demand for lithium grows, there is a need for more efficient and sustainable methods of extraction. This is leading to the development of new technologies and processes for extracting lithium from the earth.
- Recycling of lithium-ion batteries: The recycling of lithium-ion batteries is becoming increasingly important, as the number of batteries being used grows. This is leading to the development of new recycling technologies that can recover lithium and other valuable materials from used batteries.
- Exploration for new lithium sources: As demand for lithium grows, exploration for new sources of lithium is also increasing. This includes exploring for lithium in places where it has not traditionally been found, such as in geothermal brines.
- Government initiatives: Governments around the world are recognizing the importance of lithium and the role it plays in the transition to a low-carbon economy. This has led to government initiatives aimed at supporting the development of the lithium industry and the transition to electric vehicles.
- Environmental concerns: While the future of the lithium industry looks bright, there are also concerns about the environmental impact of lithium mining and extraction. This is leading to efforts to develop more sustainable and environmentally friendly methods of extracting and processing lithium.
- Price volatility: The price of lithium can be volatile, and there are concerns that as demand for lithium grows, the price could rise significantly. This could lead to challenges for the electric vehicle industry and other industries that rely on lithium.
- Competition: As demand for lithium grows, competition in the industry is also increasing. This includes competition between mining companies and competition for investment in new lithium projects.
In conclusion, the future of the lithium industry looks bright, with demand for lithium expected to grow significantly in the coming years. However, there are also challenges to be overcome, such as environmental concerns and price volatility. Nevertheless, the lithium industry is poised to play a critical role in the transition to a low-carbon economy and the development of new technologies that will shape the future.