Lithium Hydroxide Market size was over USD 21.87 Billion in 2023 and is set to exceed USD 136.08 Billion by the end of 2036, witnessing over 15.1% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of lithium hydroxide is evaluated at USD 24.84 Billion. The market growth is attributed to the increasing demand for lithium-ion batteries across the globe. The primary driver of the lithium hydroxide market is the increasing demand for lithium-ion batteries. These batteries are used in electric vehicles (EVs), consumer electronics, renewable energy storage systems, and other applications.
In addition to this, the lithium hydroxide market includes the global industry involved in the production, distribution, and consumption of lithium hydroxide. Lithium hydroxide (LiOH) is an inorganic compound used primarily in the manufacturing of lithium-ion batteries, which are widely used in various industries such as automotive, electronics, energy storage, and portable devices. As the electric vehicle market continues to expand and renewable energy installations increase, the demand for lithium hydroxide is slated to grow significantly.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
15.1% |
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Base Year Market Size (2023) |
USD 21.87 Billion |
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Forecast Year Market Size (2036) |
USD 136.08 Billion |
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Regional Scope |
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Application (Lithium-ion Batteries, Lubricants)
The lithium-ion batteries segment is predicted to gain the largest market share in the year 2036. The segmental growth is owing to technological advancements and cost reduction. Continuous technological advancements and economies of scale are driving down the costs of lithium-ion batteries, making them more affordable and competitive. The average lithium-ion battery pack prices have decreased by 89% from 2010 to 2021, reaching around USD 137 per kilowatt-hour. Further cost reductions are expected with ongoing research and development, advancements in battery chemistry, and improved manufacturing processes.
End Use Industry (Automotive, Electronics, Energy Storage)
The automotive segment is poised to gain a major share by the year 2036. The growth of the segment is augmented by government regulations and incentives. Governments worldwide are implementing regulations and offering incentives to promote the adoption of electric vehicles (EVs) as a means to reduce greenhouse gas emissions and combat climate change. Various countries have set targets and timelines to phase out internal combustion engine vehicles, creating a favorable regulatory environment for electric vehicles. Growing concerns about climate change and the environmental impact of traditional combustion engine vehicles has led to an increased focus on sustainable transportation alternatives.
Our in-depth analysis of the lithium hydroxide market includes the following segments:
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Application |
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End Use Industry |
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APAC Market Forecast
The lithium hydroxide market in the Asia Pacific region is projected to hold the largest market share by 2036. The regional growth is fueled by strong manufacturing and battery production. The Asia Pacific region is known for its robust manufacturing capabilities and established battery production infrastructure. Countries like China, South Korea, and Japan are leading manufacturers of lithium-ion batteries, which require lithium hydroxide as a critical raw material. The presence of major battery manufacturers and their expansion plans in the region contribute to the growing demand for lithium hydroxide.
North America Market Statistics
The lithium hydroxide market in the North American region is slated to hold a significant share during the forecast timeline. The growth of the market in this region can be ascribed to advancements in energy storage technologies. Research and development efforts in North America are focused on advancing energy storage technologies, including lithium-ion batteries, to enhance performance, reduce costs, and increase energy density. Collaborations between industry players, research institutions, and government agencies are driving innovation in battery chemistry, manufacturing processes, and materials, which positively impacts the growth of the segment in the global lithium hydroxide market.
Key Players
Author Credits: Rajrani Baghel
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