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Lithium Hydroxide Market

Market Insights on Lithium Hydroxide covering sales outlook, demand forecast & up-to-date key trends

Lithium Hydroxide Market by Purity, Form, Packaging, Application, End-Use & Region - Forecast 2022 - 2032

Lithium Hydroxide Market Outlook

The lithium hydroxide market is expected to be worth US$ 1,389.6 million in 2022 and grow at a 6.7% CAGR between 2022 and 2032. By 2032, the global market for Lithium Hydroxide is anticipated to be worth US$ 2657.87 million.

The lithium hydroxide market is expected to expand faster than in the past. The growing popularity of electric vehicles has spurred a revolution in the automobile sector. Lithium is a game changer since it is one of the feasible solutions to the challenges posed by climate change.

Attributes

Details

Market for Lithium Hydroxide CAGR

6.7%

Market Size for Lithium Hydroxide 2022

US$ 1,389.6 million

Market Size for Lithium Hydroxide 2032

US$ 2657.87 million

Significant Market Traction from the EV Sector to Support Growth

Although both are necessary, lithium hydroxide is a more critical raw material for cathodes than lithium carbonate. Since batteries are such an important component of electric vehicles, manufacturers must choose raw materials with higher power densities and longer ranges.

Currently, lithium hydroxide is used in the batteries of company-made EVs. The popularity of electric vehicles is expected to drive up demand for lithium hydroxide throughout the forecast period.

Lithium Hydroxide Price Fluctuation to Restrict Growth

Lithium is one of the most crucial components in the transition to a lower-carbon future. Price fluctuations are the result of an increase in demand for lithium hydroxide caused by the growing popularity of electric vehicles. As a result, the lithium hydroxide market's overall expansion may face difficulties as a result of fluctuating prices.

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Asia-Pacific to Control the Market

Global lithium hydroxide market share was dominated by the Asia-Pacific region. China has long been the world's largest producer and consumer of Li-ion batteries. Li-ion batteries are also in high demand in South Korea and Japan.

The rise of the electric vehicles is fueling global investment in the battery supply chain and the demand for less expensive batteries. Tesla has recently pioneered the market for lithium hydroxide, but China, where government subsidies are in place for both passenger EVs and commercial EVs, is the bigger driving force behind the global mass-market adoption of lithium hydroxide.

Due to the benefits provided by the devices, the expansion in urbanization is likely to increase demand for technically advanced devices. This is projected to increase demand for lithium hydroxide batteries in the region. With increasing industrialization in nations such as China and India, demand for power tools that use lithium-ion batteries is likely to rise. This, in turn, is likely to enhance demand for lithium hydroxide.

Competitive Landscape

Market Players invest money in developing their ability to generate lithium oxide in order to meet the rising demands of end consumers. A wide range of market opportunities in lithium hydroxide have been created by the numerous technological advancements and the primary rivals' increasing efforts to expand through strategic partnerships and agreements.

To stay one step ahead of the competition, players are working exceptionally hard to develop and deploy cutting-edge technological innovations.

  • Contract

Tesla declared in November 2021 that it has inked a three-year contract with Chinese manufacturer Ganfeng Lithium to purchase lithium hydroxide suited for batteries.

  • Announcement

Standard Lithium Ltd., a company that creates lithium projects and technologies, announced in March 2021 that it has successfully used OEM technology to transform lithium chloride produced in Arkansas into 99.985 percent pure lithium carbonate.

Lithium Hydroxide (LiOH), an inorganic compound, is soluble in ethanol but not in water. Commercially available monohydrate (LiOH.H2O) and anhydrous versions of these powerful bases are both available. Depending on the purity level, it is also supplied in battery grade and technical grade.

Lithium hydroxide is made when calcium hydroxide and lithium carbonate undergo a metathesis reaction. It is commonly used in the production of batteries and as an industrial lubricant. Due to its superior qualities compared to other concentrates, lithium hydroxide is frequently preferred in modern battery technologies. Additionally, lithium hydroxide is required for the production of rechargeable batteries. The substance is also widely employed in the manufacture of industrial greases like lithium stearate, a well-liked lubricant with exceptional thermal resistance.

The compound is, however, extremely expensive due to its essential use in these industries as well as challenges in obtaining and production. Furthermore, the industry's existing supply-demand gap—caused by a lack of supply and rising demand—is anticipated to drive prices even higher.

Nikhil Kaitwade
Nikhil Kaitwade
Principal Consultant
LinkedIn
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Historical (2017-21) v/s Forecast (2022-32) Market Outlook for Lithium Hydroxide Market

From 2017 to 2021, The market for lithium hydroxide grew at a 5.9% compound annual growth rate (CAGR). In 2020, the Covid-19 pandemic issue hurt the growth of the lithium hydroxide industry. In 2019, foreign buyers bought more than 80% of China's hydroxide production, largely from South Korea and Japan.

Due to challenges with customs clearance brought on by the epidemic, users in other countries had find it increasingly difficult to obtain lithium hydroxide. Domestic clients encountered difficulties in 2020 as a result of shipping issues and the increased price of lithium hydroxide. For example, the Chinese company Ganfeng Lithium asserted that it had only increased its spot prices by no more than 10% for battery-grade lithium hydroxide, citing rising transportation and raw material costs.

It is anticipated that the lithium hydroxide market will grow more quickly than in the past. Over the forecasted period, the market is predicted to expand at a CAGR of 6.7%. A revolution in the automotive industry has been sparked by the rising popularity of electric vehicles. Since lithium is one of the workable answers to the problems caused by climatic changes, it is a game-changer. The use of lithium batteries in commercial settings makes them a common source of portable energy. As worries about the abundance of fuel to fulfill the increasing energy demand have grown, so has the demand for electric vehicles. The market for lithium hydroxide is anticipated to see several opportunities as a result of these factors.

Market Dynamics

Significant Market Traction from EV Sector to Augment the Growth

Lithium hydroxide is a more Crucial raw material for cathodes than lithium carbonate, although being just as important. Battery producers nonetheless keep using this material in place of lithium carbonate. This is because lithium hydroxide also has other advantages, like a higher power density that leads to improved safety features, bigger batteries, and longer battery life cycles.

Since batteries are an electric vehicle's vital component, producers must select raw materials that offer higher power densities and, thus, longer ranges. Currently, lithium hydroxide is used in the batteries of EVs made by companies like Tesla and several others. The demand for lithium hydroxide is anticipated to increase during the projected period along with the popularity of electric vehicles. For instance, Toyota anticipates selling 3.5 million electric vehicles globally by the year 2030. A total of 30 new electric cars from Toyota are anticipated to be released by 2030. As a result, these activities will accelerate the expansion of the lithium hydroxide

Fluctuating Price of Lithium Hydroxide to Constraint the Growth.

Lithium is one of the most important components in the shift to a future with fewer carbon emissions. Price variations are a result of the spike in demand for battery-grade lithium brought on by the growing popularity of electric vehicles. The price of lithium hydroxide in China decreased from over $7,800 per tonne at the beginning of the year to over $7,000 per tonne in November 2020, according to the U.S. Geological Survey.

Additionally, towards the end of 2019, the spot price of lithium hydroxide was less than US$ 11,000 per tonne, down from US$ 16,139 per tonne in 2018. The Australian government's study states that prices fell even more in 2020, to roughly US$9,500 per tonne, before rising to about US$10,925 per tonne in 2021. As a result, the market's overall growth may encounter challenges as a result of fluctuating

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Category-wise Insights

Which is the leading End-use industry segment in the Lithium Hydroxide market?

The market for lithium hydroxide is controlled by the transportation industry. NASA used the chemical element lithium oxide to create the carbon dioxide scrubber for the shuttle mission. LiOH scrubbers have attracted a lot of interest for their ability to absorb carbon in space, but little is known about how they function underwater.

Lithium hydroxide is typically used in Li-Ion batteries for the automotive industry. Increased manufacturing in the automotive, aerospace and marine sectors would expand the market. For instance, the worldwide aircraft industry would generate US$ 874 billion in revenue in 2020, according to the Aircraft Industries Association. The International Organization of Motor Vehicle Manufacturers estimates that between September 2020 and September 2021, the globe produced 57,262,777 more vehicles than the 52,146,292 units produced the year before.

How does the Li-Ion Batteries Application segment fairing in the Lithium Hydroxide Market?

The regulatory push towards non-renewable energy sources like alternative clean fuels improved fuel efficiency, and carbon emission requirements, along with the rising demand for energy resources, are anticipated to produce a beneficial climate for the lithium-ion battery industry. The safety and dependability of the product would increase with the development of lithium-ion battery technologies that enable batteries to resist high temperatures. The development of lithium-ion batteries is being fueled by rising government investments.

Country-wise insights

What is the Growth outlook of the Lithium Hydroxide Market in Australia?

The demand for lithium hydroxide will be driven by the rising investments in the production of lithium in Australia. For instance, Tianqi (China) and Albemarle (US), two of the world's top lithium producers, have made investments in Australia. These two businesses are making investments in downstream lithium processing at Kwinana and Kemerton in Western Australia.

In the Kemerton Industrial Park, adjacent to Bunbury, Albemarle has secured final regulatory permission for its plans to construct a lithium hydroxide processing facility. To manufacture 100,000 tpa of lithium hydroxide by 2025, Albemarle plans to process Talison Greenbushes mine spodumene ore concentrate. Do these developments and investments collectively demonstrate the promising future of Australia's lithium hydrate

What is the Demand Outlook of the Indian Lithium Hydroxide Market?

The market in India is growing as a result of the rise in lithium hydroxide production. To localize the production of electric vehicles (EVs) in India, for instance, the Japanese automaker Nissan Motor commissioned research in July 2021. This study will entail the creation of a Gig facility for the nation's mass production of EV batteries.

Similar reasoning can be applied to Bajaj Auto Limited, which announced in December 2021 that it will invest US$40 million (300 crores) in a new electric vehicle manufacturing facility in Akurdi (Pune). According to the firm, this plant will be able to produce 500,000 electric vehicles annually. Additionally, the first Bajaj Chetak scooter manufacturing facility is located in this area (Akurdi, Pune). Thus, it is projected that the expansion of the market will be aided by India's rising production of lithium hydroxide during the course of the projection period.

Competitive Landscape

Market Players are spending money all over the world to develop their capacity to produce lithium oxide in the growing demands of end users. The numerous technical developments and the main competitors' growing efforts to expand through strategic alliances and agreements have opened up a wide variety of market prospects. Players are working extremely hard to create and implement cutting-edge technical advancements today one step ahead of the competition. Due to all of these developments, it is projected that the lithium oxide market would significantly expand globally in the years to come.

For Instance,

In November 2021, Tesla announced that it has signed a three-year agreement with Chinese lithium hydroxide producer Ganfeng Lithium to buy lithium hydroxide suitable for batteries.

In March 2021, Standard Lithium Ltd., a firm that develops lithium projects and technologies, declared that it had successfully converted lithium chloride made in Arkansas into 99.985 percent pure lithium carbonate using OEM technology.

Scope of the Report

Attribute

Details

Growth Rate

CAGR of 6.7% from 2022 to 2032

Base Year for Estimation

2021

Historical Data

2017-2021

Forecast Period

2022-2032

Quantitative Units

Revenue in USD Million for Value, Volume in Tons, and CAGR from 2022-2032

Report Coverage

Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis

Segments Covered

  • Purity
  • Form
  • Packaging
  • Application
  • End-use Industry
  • Region

Regions Covered

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa

Key Countries Covered

  • US
  • Canada
  • Mexico
  • Brazil
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • BENELUX
  • China
  • Japan
  • South Korea
  • India
  • ASEAN Countries
  • Australia
  • New Zealand
  • GCC Countries
  • Turkey
  • Northern Africa
  • South Africa

Key Companies Profiled

  • SQM
  • FMC Corporation
  • Albemarle Lithium
  • Jiangxi Ganfeng Lithium
  • Shandong Ruifu Lithium
  • Leverton Lithium
  • Sichuan Brivo lithium Materials Co. ltd.
  • Jiangxi Dongpeng New Materials Co. ltd
  • Ganfeng Lithium Co., Ltd.
  • HELM AG
  • Haoxin Liyan
  • Brivo
  • Vulcan
  • Standard Lithium Ltd. and others

Customization & Pricing

Available upon Request

Lithium Hydroxide Market Segmentation

By Purity Type, Lithium Hydroxide Market is segmented as:

  • 55%
  • 99%
  • 99.3%
  • Others

By Form, Lithium Hydroxide Market is segmented as:

  • Anhydrous
  • Monohydrate.

By Packaging Type, Lithium Hydroxide Market is segmented as:

  • Bottle
  • Bags
  • Others

By Application, Lithium Hydroxide Market is segmented as:

  • Li-Ion Batteries
  • Lubricating Grease
  • Glass and Ceramics
  • Dye
  • Carbon dioxide scrubber
  • Others

By End-Use, Lithium Hydroxide Market is segmented as:

  • Transportation
  • Electronic Devices
  • Nuclear
  • Chemical
  • Metallurgy
  • Others

By Region, Lithium Hydroxide Market is segmented as:

  • North America
  • Latin America
  • Europe
  • South Asia Pacific
  • East Asia
  • Middle East & Africa

Frequently Asked Questions

The market is likely to register a CAGR of 6.7% through 2032.

The market is currently valued at US$ 1389.6 Mn in 2022.

The market is likely to grow to a valuation of US$ 2657.87 Mn by 2032.

Asia Pacific is likely to be a leading market during the forecast period.

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Nikhil Kaitwade
Principal Consultant
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Lithium Hydroxide Market