Lithium Market Is Set For Lucrative Growth To 2030

Lithium Industry

The global lithium market was valued at USD 31.75 billion in 2023 and is forecasted to grow at a compound annual growth rate of 17.7% between 2024 and 2030. One of the primary drivers of this growth is the increasing adoption of electric vehicles, which require substantial quantities of lithium-ion batteries. This trend is expected to significantly support market expansion over the coming years. Within the market, the automotive sector is projected to experience notable development, largely due to strict environmental regulations placed on internal combustion engine (ICE) vehicle manufacturers. These regulations aim to reduce carbon dioxide emissions, thereby encouraging a transition toward electric vehicle production, which in turn is expected to boost the demand for lithium and its associated products.

In addition to regulatory pressures, government financial support for electric vehicles and growing investments in this area are anticipated to further stimulate the lithium market. The United States plays a key role in global battery production, ranking just behind China, and consequently stands out as a major consumer of lithium. The country is endowed with substantial lithium reserves. According to the United States Geological Survey (USGS), the U.S. had approximately 11.0 million tons of lithium resources in the form of brines and minerals as of 2023. Despite these significant resources, the country currently accounts for only about 1% of global lithium extraction.

Acknowledging the critical role of lithium in strategic sectors, the U.S. Department of the Interior declared it a critical mineral in 2018. This designation helped accelerate the permitting process for lithium mining projects. A notable development in this context was the Bureau of Land Management's approval of the Thacker Pass Lithium Mine in January 2021. Managed by Lithium Nevada Corporation, this project is expected to become the country’s most significant lithium production site. By 2026, it is projected to yield around 60 kilotons of battery-grade lithium carbonate annually.

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1. How big is the lithium market?

The global lithium market was valued at USD 31.75 billion in 2023. This size reflects a surge in demand driven by increasing adoption of electric vehicles (EVs), energy storage systems, and consumer electronics—all of which rely on lithium-ion battery technology.

2. What is the lithium market growth?

From 2024 to 2030, the market is expected to grow at a compound annual growth rate (CAGR) of 17.7%, potentially surpassing USD 74 billion by 2030. The growth is fueled by the accelerating global shift toward decarbonization, which includes policies incentivizing EVs and grid-scale energy storage.

3. Which segment accounted for the largest lithium market share?

The lithium carbonate product segment held the largest market share in 2023. This is primarily because lithium carbonate is widely used in battery production, especially for EVs and portable electronics. Additionally, it serves as a key input for producing lithium hydroxide, another critical compound in high-performance batteries.

4. Who are the key players in the lithium market?

The market is moderately consolidated, with major players including:

• Albemarle Corporation
• Sociedad Química y Minera de Chile (SQM)
• Livent Corporation
• Ganfeng Lithium Co., Ltd.
• Tianqi Lithium Corporation

These companies are involved in both mining and chemical processing, supplying raw and refined lithium products globally. Some are pursuing vertical integration strategies to secure supply chains.

5. What are the factors driving the lithium market?

Several factors are fueling market expansion:

• Rising EV production and adoption, which heavily depends on lithium-ion batteries.
• Government policies and subsidies that support clean energy technologies.
• Increased demand for energy storage systems for renewable energy sources.
• Growth in portable consumer electronics, such as smartphones and laptops.
• Strategic investments and public-private partnerships, especially in the U.S., to ramp up domestic lithium mining and processing capabilities.

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