Lithium Batteries to Take over the Electric Vehicle Segment in Coming Years, says Market.us

Lithium Carbonate, (Li2CO3), is the most stable organic compound. It is used to form other compounds such as LiOH or pure metal. The treatment of bipolar disorder can also be done with carbonate products. This compound can also be used in batteries. It has many applications in the construction industry for waterproofing slurries as well as adhesives.

LiOH, a white hygroscopic crystal material, and an inorganic chemical compound is most commonly used by battery makers. It is available commercially as an anhydrous or monohydrate. It is used in transport applications such as the manufacture of spacecraft and submarines. The market is also growing due to rapid advancements in battery technology.

According to market.us, “The global lithium market size is expected to be worth around USD 22.65 billion by 2032 from USD 7.56 billion in 2022, growing at a CAGR of 11.6% during the forecast period from 2022 to 2032.”

The market is expected to grow over the forecast period due to the significant demand for lithium-ion battery products. Due to stringent regulations imposed on ICE automakers by government agencies to reduce carbon dioxide emissions, the automotive segment will experience significant growth.

Anurag Sharma, senior research analyst at market.us said, “This has shifted automakers’ interest toward producing EVs which will benefit the demand for lithium and other related products. EV subsidies from the government and investments in the space are expected to boost the market’s growth. The market was dominated by the carbonate product segment, which accounted for more than 57.0% of the total volume in 2021.”

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Market growth is expected to be positive because many automotive companies are looking to use LiOH in battery manufacturing. BMW Group has signed an agreement to supply LiOH to battery cells through Ganfeng Lithium in China. This is due to the increasing penetration of EVs.

BMW plans to launch 25 electrified vehicles with Li-ion battery packs due to rising awareness about eco-friendly cars. After China, the U.S. is the second largest producer of battery cells. This makes the United States one of the most important lithium-consuming countries on the planet.

This country holds large reserves of important metals. The USGS estimates that lithium resources from minerals and brines accounted for 7.9 Million Tons in the United States in 2020. The country only mines 1.0% of the global demand. The production was concentrated in Nevada’s brine operations in 2020. The country will increase its mining capabilities in this industry over the next few years.

In terms of revenue, the consumer electronics segment will experience the highest CAGR of over 15.00% between 2022 and 2030. This segment is expected to grow due to increasing sales of electronic devices such as laptops, mobile phones, cameras, portable radios and speakers, and Mp3 players, which use Li-ion battery technology.

The demand for batteries is growing because of their small size, energy storage, and low weight. Single-use, non-rechargeable Li-ion batteries can be used in handheld games, remote controllers, cameras, smoke detectors, and other devices. Rechargeable lithium-polymer batteries are used in cell phones and other electronic devices, such as toys, computers, mobile phones, power tools, tablets e-readers, and small and large appliances.

These batteries are made of critical materials like cobalt, graphite, and lithium and should be treated with care. Many developed countries are increasing their investment in energy storage systems that use Li-ion batteries. This is fueling the market’s growth. The market’s growth has been greatly affected by the increasing adoption of hybrid and electric cars, high-drain electronic devices, and energy storage systems. The growing concern about environmental pollution is behind the rise in electric vehicle adoption.

EVs are less polluting than traditional vehicles. Many countries around the globe have adopted strict emission standards in order to control and reduce carbon emissions. This has helped increase the market growth. Under its 2030 climate and energy framework, the Paris Agreement aims at reducing greenhouse gas (GHG), emissions by at least 40 percent by 2030.

The EV market will be impacted by technological advancements and the evolution of the automobile industry in the last few years. The advancements in technology have made it possible for EVs to replace traditional travel methods. They are low-carbon emissions, easy to charge at home, quieter, and more economical than conventional vehicles. EVs reduce air pollution and GHG emissions in densely populated areas.

Electric vehicle market growth will be supported by the rising demand for fuel-efficient, high-performance, and low-emission vehicles. This is in addition to strict government regulations regarding vehicle emissions. The International Energy Agency (IEA) estimates that electric cars sold around 2.1 million units worldwide in 2019.

In 2019, electric cars made up 2.6% of global car sales and 1% of global stock, a 40% increase Y-o Y. The demand for electric cars is increasing significantly due to rapid technological advancements in the electrification and charging of trucks, buses, and two- or three-wheelers.