Lithium Hydroxide Market Research Report: Information, By Application (Batteries, Ceramic Glass, Lubricant Grease, and Air conditioning), By End Use (Automotive, Electrical & Electronics, Marine, Aerospace) And By Region (North America, Europe, Asia-Pacific, And Rest Of The World) –Market Forecast Till 2032.

Global Lithium Hydroxide Market Overview

Lithium Hydroxide Market Size was valued at USD 0.5 Billion in 2022. The Lithium Hydroxide market industry is projected to grow from USD 0.553 Billion in 2023 to USD 1.2381 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 10.60% during the forecast period (2023 - 2032). Increasing inclination towards use of electric vehicles and gadgets are the key market drivers enhancing the market growth. 

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Lithium Hydroxide Market Trends

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  Growing demand for electric vehicles is driving the market growth

  
  

Short-term lithium hydroxide sales were affected by COVID-19. Early in the epidemic, demand for lithium hydroxide decreased because to supply chain snags and a downturn in the economy, particularly in the automotive and electronics industries. However, in 2021, the market recovered as the importance of renewable energy and energy storage increased, specifically in the context of international measures to reduce greenhouse gas emissions and adopt green energy. Spending on lithium-ion batteries for stationary energy storage and electric vehicles increased. The growing demand for lithium-ion batteries used in electric vehicles and the rising popularity of lithium hydroxide NCA cathode-powered power tools are the main drivers of the market CAGR.

Electric vehicle sales have been increasing quickly ly in recent years.  sales of electric vehicles reportedly hit a record high of 4.7 million units in 2021, a 43% rise from the previous year, according to the International Energy Agency (IEA). Government subsidies and incentives, environmental concerns, and advancements in battery technology that have resulted in longer driving ranges and quicker charging periods are some of the facts that are driving the growth of the electric car market.

Batteries that use metallic lithium as an anode are known as disposable lithium batteries. These batteries are ideal for applications like pacemakers and other electronic medical equipment that require long-lasting power sources because of their long life and high charge density. Unlike rechargeable batteries, which can be recharged and used several times, these batteries are intended to be used just once before being discarded.

New and better lithium-ion battery technology is being developed as battery applications move towards having higher power needs and cheaper costs. To satisfy consumer demand for portable gadgets and electric cars with longer battery lives and quicker charging times, battery technology advancements are crucial. As a result, new materials, production techniques, and battery management systems have been created that can boost the efficiency and performance of lithium-ion batteries.

To boost the charge capacity of lithium-ion batteries, researchers are looking into anode material alternatives. Lithium-sulfur batteries, which theoretically offer a better energy density than conventional lithium-ion batteries, are one promising technological advancement. Lithium-air batteries are a different technology that is currently being developed; these batteries may have even better energy densities than lithium-sulfur batteries. Lastly, research is also being done on lithium-oxygen batteries, which may offer greater energy densities than lithium-air batteries.

Research and development efforts aimed at enhancing lithium-ion battery systems will soon present a wealth of options and drive industry expansion. The desire for better battery technology has never been greater due to the rise in electric vehicles and portable electronics. Thus, driving the Lithium Hydroxide market revenue.

Lithium Hydroxide Market Segment Insights

Lithium Hydroxide Type Insights

The  Lithium Hydroxide market segmentation, based on application, includes batteries, Ceramic Glass, Lubricant Grease, and Air conditioning. The market for lithium hydroxide was dominated by batteries, and that dominance is predicted to persist. The legislative push towards adoption of non-renewable energy sources such as alternative clean fuels energy, enhanced fuel efficiency, & carbon emission needs, along with the rowing demand for energy resources, is anticipated to deliver a favorable climate for the battery industry.

Lithium Hydroxide End Use Insights

The  Lithium Hydroxide market segmentation, based on end use, includes Automotive, Electrical & Electronics, Marine, and Aerospace. The automotive category generated the most income. LiOH is becoming increasingly popular among automotive companies, which is anticipated to have a positive impact on the market growth. For instance, the growing popularity of EVs led BMW Group to execute a contract with Ganfeng Lithium, a Chinese business that extracts lithium, to supply LiOH for battery cells. BMW plans to release 25 electrified models with Li-ion batteries as a result of the demand for EVs being driven by growing awareness of environmentally friendly automobiles.

Figure 1:  Lithium Hydroxide Market, by End Use, 2022 & 2032 (USD Billion)

                         

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Lithium Hydroxide Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Lithium Hydroxide market area will dominate this market, owing to an increase in the production of lithium-ion batteries across the region. In addition, the growing electronics industry will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2:  LITHIUM HYDROXIDE MARKET SHARE BY REGION 2022 (USD Billion)

               

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Lithium Hydroxide market accounts for the second-largest market share due to the growing adoption of electric vehicles. Further, the German Lithium Hydroxide market held the largest market share, and the UK Lithium Hydroxide market was the fastest growing market in the European region

The Asia-Pacific Lithium Hydroxide Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to rise in research and development activities for producing advanced battery. Moreover, China’s Lithium Hydroxide market held the largest market share, and the Indian Lithium Hydroxide market was the fastest growing market in the Asia-Pacific region.

Lithium Hydroxide Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to extends their service/product lines, which will help the Lithium Hydroxide market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their  footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Lithium Hydroxide industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the  Lithium Hydroxide industry to benefit clients and increase the market sector. In recent years, the Lithium Hydroxide industry has offered some of the most significant advantages to medicine. Major players in the Lithium Hydroxide market, including SQM, FMC Lithium, Tianqi Lithium Corporation, MGX Minerals Inc., Nemaska Lithium, Galaxy Resources Ltd., and others, are attempting to increase market demand by investing in research and development operations.

The development, manufacture, and sale of lithium chemical products are the three main activities of Tianqi Lithium Corp (Tianqi Lithium), formerly known as Tianqi Lithium Industries, Inc. Lithium metal (Li), industrial-grade lithium hydroxide monohydrate (LiOH•H2O), battery-grade lithium carbonate (Li2CO3), battery-grade lithium hydroxide monohydrate (LiOH•H2O), and anhydrous lithium chloride (LiCl) are all included in its product line. Australia, China, and Hong Kong are all where the business is active. Chengdu City, Sichuan, China serves as the headquarters of Tianqi Lithium. In May 2022, Battery-grade lithium, also known as lithium hydroxide monohydrate (LHM), has finally been generated in Australia in large-scale quantities, according to Tianqi Lithium Energy Australia (TLEA). This is the first time that battery-grade lithium has been produced in Australia.

SQM is a multinational corporation that creates and manufactures a wide range of goods for a number of sectors that are crucial to the advancement of humanity, including technology, health, nutrition, and renewable energy. The company produces high-quality goods to fulfil the dynamic and changing requirements of the company's clients. The company holds a leading  position in the lithium, potassium nitrate, iodine, and thermo-solar salts markets. In November 2022, Following recent agreements with Australian lithium developers, SK On, a leading  manufacturer of electric vehicle (EV) batteries, today announced that it had signed a supply agreement with SQM of Chile for lithium hydroxide. This will strengthen the company's supply chain for crucial battery materials as it prepares for the U.S. Inflation Reduction Act (IRA).

 Key Companies in the Lithium Hydroxide market include

• SQM,


• FMC Lithium,


• Tianqi Lithium Corporation,


• MGX Minerals Inc.,


• Nemaska Lithium,


• Galaxy Resources Ltd

Lithium Hydroxide Industry Developments

May 2023: A lithium-processing facility will be built by Albemarle, a Tesla supplier, to enable the annual production of 2,4 million electric vehicles. 50,000 tonnes of battery-grade lithium hydroxide will be processed at a new plant by the American company Albemarle Corporation.

August 2022: In order to improve the development of battery raw materials and the recycling of old new electric vehicle ("NEV") batteries, Ganfeng Lithium announced that it had joined forces with GAC AION in a long-term strategic relationship.

June 2021: A 50 megawatt energy system connected to the National Grid's high-voltage transmission system was launched in the United Kingdom. This undertaking is a piece of the nation's USD 48.5 million Energy Superhub Oxford (ESO) strategy. Pivot Power is in charge of the project, which has the support of the British government.

Lithium Hydroxide Market Segmentation

Lithium Hydroxide Application Outlook

• Batteries


• Ceramic Glass


• Lubricant Grease


• Air conditioning

Lithium Hydroxide End-Use Outlook

• Automotive


• Electrical & Electronics


• Marine


• Aerospace

Lithium Hydroxide Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America
  
  
  
  

Report Scope:

Report Attribute/Metric	Details
Market Size 2022	USD 0.5 Billion
Market Size 2023	USD 0.553 Billion
Market Size 2032	USD 1.2381 Billion
Compound Annual Growth Rate (CAGR)	10.60% (2023-2032)
Base Year	2022
Market Forecast Period	2023-2032
Historical Data	2018- 2022
Market Forecast Units	Value (USD Billion)
Report Coverage	Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered	Application, End User, and Region
Geographies Covered	North America, Europe, Asia Pacific, and the Rest of the World
Countries Covered	The US, Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Key Companies Profiled	SQM, FMC Lithium, Tianqi Lithium Corporation, MGX Minerals Inc., Nemaska Lithium, Galaxy Resources Ltd
Key Market Opportunities	Growing electronics industry
Key Market Dynamics	Increase in adoption of electric vehicles

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