According to a recent analysis by Future Market Insights (FMI), the global lithium mining market is expected to reach US$3.4 billion by 2032. Growing demand for lithium-ion batteries from end-use industries, including automotive, packaging and consumer electronics, is expected to drive lithium sales during the forecast period 2022-2032.
Lithium is widely used in the manufacture of electric vehicle batteries due to advantages such as longer life, higher fuel efficiency and low discharge rates. Increasing sales of electric vehicles are expected to boost demand for lithium in the coming years, which in turn will fuel the growth of the global lithium mining market.
In addition, growing demand for glass and ceramics from the packaging industry is likely to create new opportunities for key players in the lithium mining market. Glass and ceramics are mainly used to package pharmaceuticals, food and beverages, and other items.
Increasing applications of lithium in the glass and ceramics industries will further drive the growth prospects for the lithium mining market. In 2020, the global lithium mining market was severely impacted by the novel coronavirus pandemic.
Nationwide lockdowns, travel restrictions and cessation of mining operations hampered lithium production and consumption. However, sales are expected to recover in 2022 as lithium demand from the automotive sector continues to grow.
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“Growing focus on fuel efficiency in automotive vehicles is expected to propel consumption of lithium for batteries in the forthcoming years. Besides this, increasing sales of wearables and portable consumer electronics will continue augmenting growth of the lithium mining market through 2032,” says an FMI analyst.
- Lithium production through brine solutions is expected to capture 65% of the total lithium mining market share.
- The lithium hydroxide segment is projected to account for a dominant share over the forecast period.
- Applications of lithium in the battery segment are projected to grow at 8.5% year-over-year in 2022.
- Sales of lithium in the U.S. are projected to grow by 3.2% year-over year in 2022.
- Australia will emerge as an attractive market owing to the presence of high-capacity lithium reserves in the country.
- China will continue experiencing high demand for lithium due to increasing production and sales of consumer electronics.
Albemarle, Ganfeng Lithium, Livent, Nemaska Lithium, Orocobre limited, Sichuan Tianqi Lithium Industries, SQM and Lithium Americas Corp. are among the key market players identified by FMI. These players are projected to command 60-70% of the total lithium mining market share.
Leading players operating in the global lithium mining market are focusing on production facility expansion through mergers and acquisitions to gain a competitive edge in the market.
- In October 2022, Belgian material technologies group Umicore UMI.BR signed a long-term lithium supply deal with Gangfen Lithium Co. Ltd. to expand its production capacity in response to rising electric vehicles demand.
Lithium Mining market by Category
- Hard Rock
- Lithium Carbonate
- Lithium Hydroxide
- Ceramics and Glass
- Lubricants & Grease
- Flux Powder
More Insights into the lithium Mining Market Report
In its latest report, FMI offers an unbiased analysis of the global lithium mining market, providing historical data for the period of 2016-2020 and forecast statistics for the period of 2022-2032.
In order to understand the global market potential, its growth, and scope, the market is segmented on the basis of source (brine and hard rock), type (lithium carbonate and lithium hydroxide) and applications (battery, ceramics and glass, lubricants and grease, polymer, flux powders, and refrigeration) and across seven regions (North America, Latin America, Eastern Europe, Western Europe, Asia Pacific excluding Japan (APEJ), Japan, and Middle East & Africa).
What is the impact of the COVID-19 crisis on the lithium mining market?
The current COVID-19 crisis is expected to have a significant impact on global economic growth for the period 2020-2022. The growth curve of the global economy has suffered a slump of up to -5% due to the pandemic. Factors such as nationwide lockdowns, travel restrictions, and the halt in manufacturing and production in various sectors have resulted in slowing Lithium consumption.
Mining operations have also been closed in all in 2020. This has led to lower growth prospects in the global lithium mining market. However, with the resumption of production and sales in the automotive and consumer electronics industries, the lithium mining market is expected to recover steadily over the forecast period.