Lithium hydroxide is an important component that is utilized in the manufacturing of lithium-ion batteries which power various electronic devices. With the growing adoption of consumer electronics along with the rise of electric vehicles, the demand for lithium-ion batteries has increased substantially in recent years. Lithium hydroxide is used as a cathode material in lithium-ion batteries owing to its ability to provide high energy density as well as improve battery lifecycle. It offers excellent corrosion resistance and thermal stability. The increasing use of lithium-ion batteries in smartphones, laptops, power tools and electric vehicles is propelling the growth of the lithium hydroxide market.
The global lithium hydroxide market is estimated to be valued at US$ 0.61 Bn in 2024 and is expected to exhibit a CAGR of 7.4% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends witnessed in the lithium hydroxide market is increasing lithium mining activities across various countries. With the rising demand for lithium from the battery industry, mining companies are investing heavily in exploring new lithium reserves and ramping up lithium production. According to the United States Geological Survey (USGS), Chile, Australia and Argentina held about 65% of the global lithium reserves as of 2019. Mining companies in these countries are actively involved in lithium extraction to cater to the growing battery market. Another notable trend is the shift towards more environment-friendly production of lithium hydroxide through methods such as in-situ recovery of lithium from brine and hard rock mining. Several players are focusing on developing greener production techniques to reduce environmental footprint of lithium mining.
Porter’s Analysis
Threat of new entrants: The lithium hydroxide market requires huge capital investments, thereby limiting the threat of new entrants. Bargaining power of buyers: The bargaining power of buyers is moderate as lithium hydroxide has limited substitutes and switching costs are high. Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of raw materials and presence of several suppliers. Threat of new substitutes: There is a low threat of substitutes as lithium hydroxide is uniquely suited for lithium-ion batteries. Competitive rivalry: The market is moderately competitive with presence of several global and regional players.
Key Takeaways
The Global Lithium Hydroxide Market Size is expected to witness high growth.
Regional analysis: The Asia Pacific region is expected to retain its dominance in the global market till 2030. China currently accounts for more than 50% of the lithium hydroxide production owing to presence of key battery manufacturers. Europe is also expected to grow at a significant rate owing to initiatives to promote electric vehicles.
Key players: Key players operating in the lithium hydroxide market are Halliburton Co., Weatherford International Ltd., National Oilwell Varco, Inc., Xi’an Kosun Machinery Co., Ltd., Tervita Corporation, TWMA Ltd., Step Oiltools, Soli-Bond, Inc. Specialty Drilling Fluids Ltd., Soiltech, Scomi Group BHD, Secure Energy Services, Inc., Schlumberger Ltd., Nuverra Environmental Solutions, Ridgeline Canada, Inc., Newalta, Hebei Gn, Solids Control Co. Ltd., Imdex Limited, Baker Hughes, Inc., Derrick Equipment Company, and Augean PLC.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
