by Lithium hydroxide is an inorganic compound that is commonly utilized for manufacturing lithium-ion batteries which are extensively used in consumer electronics and electric vehicles. Lithium-ion batteries have witnessed robust adoption over the past few years due to rising demand for smartphones, laptops, and other portable consumer electronic devices. Additionally, increasing emphasis on developing electric mobility solutions to reduce vehicular emissions is boosting the production of electric vehicles globally. Lithium hydroxide serves as a key raw material in the manufacturing of cathodes used in lithium-ion batteries.
The global lithium hydroxide Market is estimated to be valued at US$ 0.61 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The global lithium hydroxide Market is driven by increasing adoption of lithium-ion batteries. As mentioned in the heading, lithium-ion batteries find widespread usage in consumer electronics and electric vehicles. Growing demand for smartphones, laptops, and other portable devices along with rising electric vehicle production is favorably impacting the lithium hydroxide Market. According to Allied Market Research, global lithium-ion battery market is projected to reach $129.3 billion by 2030, growing at a CAGR of 12.7% during the forecast period. This rising consumption of lithium-ion batteries will augment the demand for lithium hydroxide which is a key raw material. In addition, stringent emission norms worldwide to curb vehicular pollution are encouraging automotive manufacturers to shift towards electric vehicles. All these factors will propel the lithium hydroxide Market over the forecast period.
Segment Analysis
The lithium hydroxide market is segmented based on application and region. The applications segment dominated by electric vehicle batteries which holds around 60% share of the total market. Lithium hydroxide is used as a key component in the manufacturing of lithium iron phosphate and lithium nickel manganese cobalt oxide batteries used in electric vehicles. The demand for lithium hydroxide from electric vehicle batteries is growing at a strong pace owing to rising sales of electric vehicles across the world.
PEST Analysis
Political: The governments across major economies are supporting the electric vehicle industry through incentives and subsidies to customers for purchase of electric vehicles. This is positively impacting the demand for lithium hydroxide.
Economic: The rising disposable income and growing middle class population are major drivers of the automobile industry including electric vehicles. This growing demand from automobile industry is augmenting the lithium hydroxide market.
Social: The increasing awareness about environmental issues and carbon emissions is shifting customer preference towards electric vehicles over conventional vehicles. This changing customer behavior is benefiting the lithium hydroxide market.
Technological: Continuous technological advancements are taking place in lithium-ion batteries to improve their energy density and life cycle. Battery manufacturers are using lithium hydroxide in newer battery chemistries with improved efficiencies.
Key Takeaways
The Global Lithium Hydroxide Market Size is expected to witness high growth between 2023 and 2030.
Regional analysis: Asia Pacific dominates the global lithium hydroxide market and is expected to maintain its dominance during the forecast period. China is the largest producer and consumer of lithium hydroxide globally.
Key players related content comprises Key players operating in the lithium hydroxide market are Halliburton Co., Weatherford International Ltd., National Oilwell Varco, Inc., Xi’an Kosun Machinery Co., Ltd. Key players are investing in increasing lithium hydroxide production capacities to cater to the growing demand from the electric vehicle industry.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
