Growing Demand for Lithium in the Energy Market, Thanks to the Electric Vehicle Industry, says Market.us
Lithium is a critical metal in the construction of electric car batteries, and its price has been surging in recent years due to the increase in demand for electric vehicles. The market is complex, with a large number of stakeholders and a wide range of materials used in lithium-ion batteries. In this blog post, we will introduce the market, its key players, and the various types of lithium used in batteries.
Lithium is a soft, silver-white metal part of the alkali metal family. It is the lightest metal on the periodic table and has the highest electrochemical potential. It is used in many industries, but it is most well-known for its use in lithium-ion batteries. These batteries are used in smartphones, laptops, and electric vehicles.
According to Market.us, “The global lithium market is expected to grow at a CAGR of close to 9.5% during the period 2023-2033, according to the latest market research report by Market.us.”
The price of lithium has been on the rise in recent years due to the increase in demand for electric vehicles. The majority is produced in China, Australia, and Chile. However, there is a large number of reserves in the United States. The market is complex, with a large number of stakeholders and a wide range of materials used in lithium-ion batteries. The four key players in the market are miners, chemical companies, battery manufacturers, and electric vehicle manufacturers.
Miners are responsible for extracting from the earth. The two main types of mining are hard rock mining and brine mining. Hard rock mining is more expensive and time-consuming than brine mining, but it provides a higher grade of lithium. The four main lithium-producing countries are China, Australia, Chile, and Argentina.
Chemical companies are responsible for refining into usable chemicals. The two main types of refining are flash melting and electrolysis. Flash melting is the most common type of refining, and it produces a lower purity of lithium. electrolysis is a more expensive process, but it produces a higher purity.
Lithium is witnessing an increase in demand from the production of electric vehicles (EVs). The production of EVs is gaining momentum globally as concerns over air pollution and climate change are resulting in the shift from traditional internal combustion engine vehicles to EVs. The rise in the production of EVs is resulting in an increase in demand, as it is used in the manufacture of batteries for EVs.
Apart from the automotive industry, the electronics industry is also driving the growth of the global market. Lithium-ion batteries are widely used in portable electronic devices such as laptops, smartphones, and digital cameras as they offer high energy density and long shelf life. The rapid growth of the electronics industry in countries such as China, India, and South Korea is leading to an increase in demand.
The increase in exploration and production activities of lithium is another important driver propelling the growth of the global market. Countries such as Australia, Chile, and Argentina have large reserves of that are yet to be exploited. The exploration and production of lithium in these countries are expected to start in the coming years, which will increase the supply in the global market and thereby reduce the prices.
This increase in the supply is expected to have a positive impact on the growth of the global market during the forecast period.
The global market is highly competitive with a large number of players. The key players in the market are FMC Corporation, Sociedad Quimica y Minera de Chile, Albemarle Corporation, Tianqi Lithium Corporation, and Ganfeng Lithium Co. Ltd.
Media Enquires
If you require any further information about a related market, please get in touch with us. we're happy to help you
