Global Lithium Hydroxide Sector: Growth Drivers and Challenges
Growth Drivers
-
Energy Storage Systems: The demand for energy storage systems, including grid-scale and residential batteries, is rising. In the year 2021, the global energy storage installed capacity reached 3.2 gigawatts (GW), a 62% increase compared to the previous year.
-
Renewable Energy Integration: The increasing deployment of renewable energy sources like solar and wind power requires efficient energy storage solutions. Lithium-ion batteries, which utilize lithium hydroxide, are a key technology for renewable energy integration.
- Government Initiatives and Policies: Governments worldwide are implementing supportive policies and incentives to promote electric vehicles, renewable energy, and energy storage. For instance, countries like China, the United States, and several European nations have introduced subsidy programs.
Challenges
-
Limited Lithium Reserves: Lithium reserves are limited and concentrated in a few countries, primarily Australia, Chile, and China. The extraction and processing of lithium minerals are complex and time-consuming processes. As the demand for lithium hydroxide increases, there is a need to ensure a stable and diversified supply chain to meet market demands.
-
Environmental Concerns
- Cost and Price Volatility
Lithium Hydroxide Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
15.1% |
|
Base Year Market Size (2024) |
USD 25.17 billion |
|
Forecast Year Market Size (2037) |
USD 156.63 billion |
|
Regional Scope |
|
