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Lithium Market Size, Share & Industry Analysis, By Product (Carbonate, Hydroxide, Chloride, Metal, and Others), By Application (Batteries, Glass & Ceramics, Lubricant, Polymers, Metallurgy, Medical, Air Treatment, and Others), By End-User (Automotive, Consumer Electronics, Industrial, Energy Storage, and Others), and Regional Forecast, 2024-2032

Last Updated: May 06, 2024 | Format: PDF | Report ID: FBI104052



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The global lithium market size was valued at USD 22.19 billion in 2023 and is projected to grow from USD 26.88 billion in 2024 to USD 134.02 billion by 2032 at a CAGR of 22.1% during the 2024-2032 forecast period.

Rapid advancements in rechargeable batteries for laptops, mobile phones, electric vehicles, and digital cameras, driven by the growth in the Lithium-ion Battery (LIB) market. Rising demand for lithium batteries, lubricants, glass & ceramics, and foundry is expected to foster the growth of this market.

The growing adoption of hybrid and electric vehicles, high-drain portable electronics, and energy storage systems have boosted the growth of the overall market. The increasing awareness of electric vehicles is attributable to the growing concerns about surrounding environmental pollution as EVs reduce carbon emissions. The Paris Agreement aims to reduce greenhouse gas (GHG) emissions by at least 40% under its 2030 climate and energy framework. Governments in several countries worldwide are implementing strict emission standards to reduce and control carbon emissions, thus augmenting market growth. In 2022, the market showed a sudden skyrocketing price of lithium commodity with the booming demand for Electric Vehicles (EVs) subsequently for the medium-term attributable to this market’s demand and supply mechanism.

Li-ion batteries will likely play a major role in the highly electrified transport sector. The coronavirus outbreak hindered the battery and Electric Vehicle (EV) markets. LIBs were used in medical devices, including ventilators, during the COVID-19 pandemic. In July 2020, Pure EV, an electric vehicle manufacturing company, announced that it would supply LIBs to healthcare companies engaged in the fight against the novel coronavirus across India.

Lithium Market Trends

Companies Creating Environmentally Sustainable Solutions for LIBs and EVs will Fuel the Product Demand

The growth of the LIB market has subsequently led to a rise in product demand. LIBs are a crucial component in cleaning up the environment. The battery of a Tesla Model S has about 12 kilograms of lithium in it, whereas grid storage solutions will help balance the renewable energy. Recently, IBM has developed a new battery type free of nickel, cobalt, and other heavy metals, thus avoiding the humanitarian and environmental issues related to Li-ion technology. The battery is made from seawater, and the researchers at IBM claimed that this concept could help eliminate the need for heavy metals in the production of batteries.

Electric vehicle companies and carmakers are changing their preferences depending on the cathode characteristics regarding safety, stability, life, cost, and energy density. EVs are promoted as a sustainable transportation choice on a life-cycle basis, as they emit less GHG than conventional vehicles. For instance, Tesla is planning for next-generation EV batteries that would focus on introducing Li-iron phosphate batteries to the market. This will cut the vehicle costs, extend the vehicle range up to 400 miles or more, and enable the batteries to last as long as 1 million miles. Additionally, the company plans to implement a high-speed, heavily automated battery manufacturing process designed to increase mass production and reduce labor costs.

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Lithium Market Growth Factors

Increasing Adoption of Electric Vehicles Will Aid Market Growth          

The automotive industry's evolution over the past few years will have a massive impact on the EV market. EVs are designed to replace conventional traveling methods owing to technological advancements, low carbon emission, low maintenance, smoother drive, the convenience of charging at home, reduced engine sound, and high fuel economy. EVs help reduce air pollution in densely populated areas and GHG emissions.

A rise in demand for high-performance, low-emission, and fuel-efficient vehicles and strict government norms toward vehicle emission will aid the electric vehicle market growth. According to the International Energy Agency (IEA), the volume of sales of electric cars was around 10 million worldwide in 2022 and is expected to grow another 35% this year to reach 14 million annually. Electric cars accounted for 14% of the global car sales in 2022 and around 4% of the global car stock in 2020, expecting to register 18% by this year. With rapid technological advances in the electrification of trucks, buses, and two- or three-wheelers, the demand for electric vehicles is escalating significantly.

Batteries are crucial for Hybrid Electric Vehicles (HEVs), all-Electric Vehicles (EVs), and Plug-in Hybrid Electric Vehicles (PHEVs). EVs using LIBs could considerably reduce the emissions associated with road vehicle transport. Most battery manufacturers are integrating LIB in electric vehicles. For example, Groupe Renault's ZOE car is Europe's best-selling electric car. The Renault Zoe is made in two variants, R110 and R135, with a 400V, 52 kWh Li-ion battery pack weighing around 326 kilograms. Also, the company plans to bring electric cars to the Indian market by 2022. Kwid's electric version is successful in China and will be introduced in India soon.

Growing Product Utilization in Production of Lithium-ion Rechargeable Batteries

In recent years, the use of lithium-ion rechargeable batteries has become increasingly widespread due to their high energy density, longer lifespan, and ability to retain a charge for extended periods. These batteries are commonly used in a range of electronic devices, including smartphones, laptops, and electric vehicles. The growing demand for this product as a key component in the production of these batteries has led to an increase in its utilization. Lithium is a highly reactive metal that is obtained from various sources, including brines, pegmatites, and lithium-bearing clays. The majority of the world's lithium reserves are located in the "Lithium Triangle" region of South America, which includes Argentina, Bolivia, and Chile. Thus, the demand for lithium-ion batteries is expected to continue to grow in the coming years, driven by the increasing adoption of electric vehicles and renewable energy storage systems.


Environmental Concerns and Recycling May Hinder Market Growth

Lithium extraction has a significant social and environmental impact, especially due to water depletion and pollution. Also, to process this metal, toxic chemicals are required. Releasing such toxic chemicals through air emission, leaching, or spills can harm the ecosystem, food production, and communities. The metal extraction inevitably damages the soil and causes air pollution. In Argentina, locals claimed that the operations had contaminated the streams used by livestock and humans.

Also, there is a concern regarding product recycling. Low collection rates, volatility in product prices, and high recycling costs have contributed to the absence of lithium recycling. The probable scope for product recycling is complicated as the material is highly reactive, flammable, and toxic.

Lithium Market Segmentation Analysis

By Product Analysis

Carbonate Segment Holds a Dominant Share due to the Product Demand from Pharmaceutical Industry

On the basis of product, the market is categorized into carbonate, hydroxide, chloride, metal, and others.

Lithium carbonate (Li2CO3) held a dominant market share in 2023. It is also known as lithium salt, preferably used for processing metal oxides. Carbonate is extracted from brines and is the first compound in the production chain. It is used in the pharmaceutical industry to make medicines for treating patients suffering from bipolar disorder and to prevent cluster headaches. Also, Li2CO3 is widely used in the automotive industry owing to the increasing sale of electric vehicles, thus providing impetus to the growth of the market significantly over the past years.

Advances in batteries have created a huge demand for the hydroxide segment, which is expected to witness the highest CAGR during the forecast period. It is manufactured from varied sources such as petroleum hard rocks and brines. Several manufacturers worldwide are constructing plants to expand their business and secure a place in the value chain. For example, in March 2019, Albemarle started construction work of a lithium-hydroxide (LiOH) processing plant in Kemerton, Western Australia, for USD 709.4 million. Once the plant is operational, it will produce up to 100,000 tons of premium battery-grade LiOH per annum.

It is extensively used to produce LIBs, energy storage systems, and electric vehicles. In 2019, China produced around 79% of lithium-hydroxide, which is used to manufacture electric car batteries. Due to the global pandemic, most Western carmakers will localize the supplies of products for electric car batteries.

By Application Analysis

Batteries to Hold Major Share owing to the Growing Demand from Consumer Electronics

On the basis of application, the market is segmented into batteries, glass & ceramics, lubricant, polymers, metallurgy, medical, air treatment, and others.

The batteries segment accounted for a major market share in 2023 and will likely continue its dominance during the forecast timeframe. LIBs are used in many combinations of active materials for the cathode, electrolyte, and anode. They are either primary or secondary batteries. Primary batteries are used in cameras, calculators, electronic games, watches, computers, and other devices. In contrast, secondary batteries are used in portable computers, telephones, tablets, electric vehicles, cordless tools, and video cameras.

A surge in electric vehicle sales due to rise in per capita disposable income and user preferences will drive the LIB market. The demand for rechargeable batteries declined due to the coronavirus outbreak, thus contributing to the downfall of the automotive industry. As per the BloombergNEF forecast, battery consignments to carmakers fell by about 14% in 2020. Thus, consumer awareness and a major mind shift toward low-cost transportation will drive market growth in the coming years.

Metal carbonate is used to lower the temperature and thermal expansion in glass and ceramics applications. It is used in glass-ceramics cooktops to reduce thermal expansion, ensure color consistency, increase mold strength, improve durability, lower viscosity, and increase melt rate. SCHOTT AG specializes in manufacturing glass and glass-ceramics and uses a lithium aluminium silicate system to produce glass-ceramics, such as CERAN cooktop panels, ZERODUR glass-ceramic fire protection glasses and security, and ROBAX fire viewing windows for fireplaces.

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By End-User Analysis

The Automotive Industry Dominates the Market Due to a Growing Preference for Hybrid and Electric Vehicles

On the basis of end-user, the market is segmented into automotive, consumer electronics, industrial, energy storage, and others.

The automobile industry is currently dominated by fossil fuel consumption but is increasingly moving toward becoming an alternate source of energy, such as lithium-ion-backed battery technology. The increasing demand for EVs and the shift toward clean energy will drive the product demand in the coming years. For instance, the Indian Government launched FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) along with national & state-level regulations to make 30% of electric cars target by 2030 by adding 450 GW of renewable sources by establishing 34 GW/136 GW of battery storage requirements to make the country a major user of LIB.

The consumer electronics segment has grown exponentially in recent times. LIBs are used under rechargeable gadgets to store the proper energy-to-weight ratios and high open-circuit voltage. The advancement in battery technology is making electronic products more refined and slim, which makes higher use of batteries to increase the running time of products. In addition, these batteries have a high power density for more battery life in a lighter package. Hence, an increase in demand for smartphones and consumer electronics is expected to drive market growth.


Asia Pacific Lithium Market Size, 2023 (USD Billion)

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Asia Pacific is estimated to hold the largest lithium market share, owing to widespread product usage in the industrial and commercial sectors, including power, consumer electronics, chemical, industrial, general manufacturing, and others. Asia Pacific is rapidly developing due to various government initiatives and increasing foreign investments in the industrial sector. The easy availability of raw materials is considered one factor supporting the market growth.

Additionally, the presence of a large number of lithium and its derivatives-producing companies in emerging countries such as India, Taiwan, Japan, South Korea, and China is surging the product demand. China is one of the largest producers of electronic components such as fuel cells, batteries, and capacitors. There has been advancement in fuel cell technologies for electric vehicles to aid the rules set by the government to reduce the pollution that occurs due to the burning of petrochemicals and gasoline.

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The market in North America is likely to rise considerably during the lithium market forecast period. The increasing adoption of cleaner energy sources due to stringent regulatory rules is surging regional growth. The Environmental Protection Agency (EPA) has various schemes and funding programs that support the usage of green and sustainable sources of energy like solar, wind, geothermal, and others. The increasing adoption of solar panels has created a substantial demand for cells and batteries to store energy.

For instance, in a technology transfer program of NASA, the gas-powered engines of aircraft were replaced by LIB packs designed by NASA and other contractor partnerships. These factors will contribute to the growth of the market in North America.

Europe has witnessed significant industrial development in the last decade. The increasing investment of the European Union for R&D in automobile, ICT, and healthcare sectors is the main factor driving the market growth. According to the European Automobile Manufacturers Association (ACEA), Europe's battery electric vehicles hold 12.1% of the total market share, compared to 9.1%in 2021 or 1.9%in 2019.

Latin America accounts for around 70% of the world’s lithium reserves, where the metal is used in rechargeable batteries for EVs and mobile phones. Chile produces metals that are cheap and high-quality. Chile’s government is allowing new entrants as the region's market is consolidated in nature.

The Middle East & Africa is expected to have significant market growth driven by Saudi Arabia due to increased investment in green energy and tourism. For instance, the Saudi government announced an integrated Battery Chemicals Complex at a valuation of USD 899 million in Yanbu Industrial City to fuel clean energy resources by boosting the regional market.

List of Key Companies in the Lithium Market

Acquisition, Partnerships, and Capacity Expansion are the Key Strategic Initiatives Adopted by the Companies to Increase Market Presence

Major players operating in the market are Albemarle, SQM S.A., Tianqi Lithium, Jiangsu Ronghui General Lithium Industry Co., Ltd., and others. Companies are involved in capacity expansion, new product launches, joint ventures, acquisitions, and partnerships to gain a competitive edge in the market.

Albemarle Corporation has a strong presence in North America. Albemarle Corporation is the region's biggest manufacturer of specialty chemicals that deals in three market divisions, lithium, bromine, and catalysts. Similarly, the other key players have established a strong regional presence, robust distribution channels, and varied product offerings.



  • January 2023 – Ganfeng Lithium Co., Ltd. announced an investment of USD 2.14 billion in two new battery factories to increase its production capacities by 34 GWh. This facility will add to manufacturing and is expected to grow to around 100 GWh annually.

  • December 2022 – Sigma Lithium announced that the company has secured a fund of USD 100 million from Synergy Capital to build the first phase of a USD 155 million expansion at its Grota do Cirilo lithium project in Minas Gerais, Brazil. This mine can generate up to 270,000 tonnes per year of high-purity battery-grade lithium concentrate, equal to about 36,700 tonnes of Lithium Carbonate Equivalent (LCE).

  • September 2022 – SQM S.A. announced a sustainable innovation program named the 'Salar Futuro Project,' which develops a new form of lithium production with zero freshwater usage. This project's initial investment of USD 1,500 million aims to achieve a zero water footprint by achieving carbon neutrality.

  • June 2022 – Albemarle Corporation inaugurated a third chemical conversion plant La Negra III/IV, in Antofagasta. This facility is one of the modern conversion plants in Latin America. This facility will double the lithium production, reduce water consumption by 30% per metric ton, and commit to a sustainable production line.

  • June 2021 - Ganfeng Lithium announced an increase in its Li2CO3 production by 600,000 tons an equivalent year as demand for the commodity used in electric-vehicle batteries increases. The company will sell around USD 630 million in new shares to boost capacity and fund potential investments.


An Infographic Representation of Lithium Market

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The research report provides a detailed market analysis and focuses on crucial aspects such as leading companies, products, and applications. Also, the report offers insights into market trends and highlights vital industry developments. This report includes historical data & forecasts revenue growth at global, regional, and country levels, and analyzes the industry's latest market dynamics and opportunities. In addition to the abovementioned factors, the report encompasses various factors contributing to the market's growth in recent years.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period


Growth Rate

CAGR of 22.1% from 2024 to 2032


Value (USD Billion); Volume (Million Ton)


By Product

  • Carbonate

  • Hydroxide

  • Chloride

  • Metal

  • Others

By Application

  • Batteries

  • Glass & Ceramics

  • Lubricant

  • Polymers

  • Metallurgy

  • Medical

  • Air Treatment

  • Others

By End-User

  • Automotive

  • Consumer Electronics

  • Industrial

  • Energy Storage

  • Others

By Geography

  • North America (By Product, By Application, By End-User, By Country)

      • U.S. (By End-User)

      • Canada (By End-User)

  • Europe (By Product, By Application, By End-User, By Country)

      • Germany (By End-User)

      • U.K. (By End-User)

      • France (By End-User)

      • Italy (By End-User)

      • Rest of Europe (By End-User)

  • Asia Pacific (By Product, By Application, By End-User, By Country)

      • China (By End-User)

      • Japan (By End-User)

      • India (By End-User)

      • South Korea (By End-User)

      • Rest of Asia Pacific (By End-User)

  • Latin America (By Product, By Application, By End-User, By Country)

      • Mexico (By End-User)

      • Brazil (By End-User)

      • Rest of Latin America (By End-User)

  • Middle East & Africa (By Product, By Application, By End-User, By Country)

      • GCC (By End-User)

      • South Africa (By End-User)

      • Rest of the Middle East & Africa (By End-User)

Frequently Asked Questions

Fortune Business Insights says that the global market size was valued at USD 22.19 billion in 2023 and is projected to reach USD 134.02 billion by 2032.

In 2023, the Asia Pacific market size was valued at USD 14.69 billion.

Recording a CAGR of 22.1%, the market will exhibit steady growth during the forecast period of 2024-2032.

Batteries segment is the leading end-user in this market.

Rapid evolution with ongoing development in the electric vehicle sector is a key factor driving the market growth.

Albemarle Corporation, SQM, FMC Corporation, Livent, and Avalon Advanced Materials Inc. are a few of the leading players in the global market.

Asia Pacific dominated the global market in 2023.

Continuous growth of the Li-ion battery market is expected to surge the product demand.

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