Concerted efforts toward a fossil fuel-free economy have encouraged stakeholders to tap into the global lithium market. Automotive conglomerates are banking on lithium minerals used in the production of electric vehicles and rechargeable batteries. Lithium metal is adding value across industries, including aerospace and defense, with applications expanding in glass & ceramics, grid storage and consumer electronics.

In layman’s language, lithium is a vital component in solid-state batteries and lithium-ion batteries. It provides higher energy density, repeated charging and discharging and more usable capacity vis-à-vis other battery types. Lithium-ion batteries use a lithium compound as graphite at the negative electrode and material at the positive electrode. These batteries can predominantly perform around 500 to 10,000 cycles of charging and discharging.

Li-ion batteries have emerged as a compelling technology to do away with conventional fossil-fuel powered devices. They have created a cycle of increased production, reduced cost and heightened demand across industries. According to the IEA, the annual output of lithium-ion batteries is likely to more than quadruple by 2030 (from 2020 levels).

Unfolding Clean Energy Potentials of Lithium Carbonate

As global watchdogs strive to shift toward a carbon-free world, miners are counting on lithium carbonate—a chemical compound composed of oxygen, lithium and carbon—to boost the production of lithium-ion batteries. The rising footfall of EVs, smartphones and laptops has underscored the value proposition of lithium carbonate. In essence, the compound has become sought-after in spacecraft and manufacturing submarines, alluding to the compelling opportunities it presents.

With governments implementing rigorous emission regulations and offering incentives, including subsidies for EV adoption, investments in lithium are poised to gain ground.  In January 2023, General Motors joined forces with Lithium Americas for the development of U.S.-sourced lithium production on the back of a USD 650 million equity investment. It is reported that lithium carbonate will be used from Thacker Pass in the former’s proprietary ultium battery cells. The lithium market could generate USD 74.80 billion in revenue by 2030. The bullish growth suggests the prospect lithium carbonate holds in the global landscape.

Automakers Bank on Lithium

Li-ion batteries have become a vital source for the electrification of vehicles, including cars, scooters, buses, trucks and bicycles. Incumbents are expected to invest in the lightest metal to help automakers address challenges, including CO2 reduction, fuel economy and powertrain performance. Meanwhile, the shortage of lithium has compelled automakers to inject funds into the mining business. To illustrate, in January 2023, Tesla amended its agreement with Piedmont Lithium to supply the American automaker with spodumene concentrate from North American Lithium.

Automakers, including BMW, Volkswagen and Tesla, are exploring options to bolster lithium procurement and supply chain. Several reports claim Tesla’s lithium extraction facility could open in mid-2024 in Texas. Meanwhile, in February 2024, BMW Group teamed up with Albemarle, wherein the latter will supply battery-grade lithium to help the German behemoth keep up with the demand for high-performance premium EVs. The two companies are likely to invest in the technology for more energy-dense and safer lithium-ion batteries.

Africa Bets Big on Mining

While Africa has largely relied on oil, lithium mining in the region has turned out to be a happy hunting ground. So much so that in October 2023, the Nigerian government apparently stated that companies would not be permitted to mine and export raw lithium unless they established processing and refining plants in Nigeria. Prominently, lithium is currently mined in Ekiti, Kogi, Nassarawa, Cross River States and Kwara. Besides, the mineral is profoundly mined in Namibia, Zimbabwe, Mali, Ghana and the Democratic Republic of the Congo.

Future is Lithium?

Amidst shifting consumer preference, the advent of state-of-the-art technologies and tightening regulations, battery prices have dipped and OEMs have bolstered their supply chains. Demand for lithium is likely to rise on the back of the EV trend, providing revenue-boosting opportunities for EV producers, mining companies and other stakeholders. Indeed, most of the future battery technologies may also need the mineral in various chemical forms.

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Lithium Market Segmentation

Grand View Research has segmented the global lithium market based on product, application, and region.

Lithium Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Carbonates

• Hydroxide

• Others

Lithium Application Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• Automotive

• Consumer Electronics

• Grid Storage

• Glass & Ceramics

• Others

Lithium Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

• Asia Pacific

  • China

  • South Korea

  • Japan

• Central & South America

• Middle East & Africa

List of Key Players in the Lithium Market

• Albemarle Corporation

• Ganfeng Lithium Co., Ltd.

• SQM S.A.

• Tianqi Lithium Corporation

• Livent Corporation

• Lithium Americas Corp

• Pilbara Minerals

• Orocobre Limited Pty Ltd

• Mineral Resources

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About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare.