Lithium Mining Market Trends

Growth Drivers

• Augmenting Demand for Electric Vehicles – lithium-ion (Li-on) batteries are gaining incredible popularity for powering electric vehicles, which are considered to account for almost 60% of new car sales by 2030. As these batteries are the key to lightweight, rechargeable power, hence with the augmenting global electric vehicle revolution and expanding demand for fuel-efficient lightweight cars, the production of lithium is expected to expand, fueling the market growth over the forecast period.
• Increasing Exploration of Potential Reserves - The increasing interest in lithium is responsible for disclosing some of the world’s largest-known reserves significantly. As per the US Geological Survey (USGS), there were nearly 80 million tons of identified reserves globally in 2019.
• Increasing Disposable Income – the growing global urbanization as well as the increasing demand for various consumer electronics, smart & portable devices is a result of the raised standard of living backed by increasing disposable income of the middle class. It is also indirectly responsible for fueling the demand for lithium which is unprecedented and crucial in order to transition to renewables. It was observed that disposable personal income in the United States averaged USD 6048 Billion from 1959 until 2023, touching an all-time high of USD 21826 Billion in March 2021.
• Rising Investment in Green Technology - batteries obtained from lithium are often closely associated with “green” technology. Though the lithium mining processes have some environmental concerns around them yet investment in green technologies is surging as they are considered worthy worldwide. For instance, it was found that new investments in renewable energy globally touched nearly USD 119 billion up from USD 106 billion in the previous quarter.
• Growing Cases of Bipolar Disorder – The increasing demand for lithium as an essential medication to treat and prevent episodes of mania in people with bipolar disorder as lithium is in a class of medications called antimanic agents is anticipated to boost its demand by the pharma companies, which is expanding exponentially.

Challenges

• Concern About Lithium Mining Environmental Impact – With the rising awareness that lithium mining is harmful to the planet, similar to the extraction of any other resources that result in soil degradation, water shortages, biodiversity loss, damage to ecosystem functions, and an increase in global warming is expected to raise alarm. According to a report by Friends of the Earth (FoE), lithium mining inevitably harms the soil and causes air contamination. The growing environmental concern as well as the rising mining impacts besides the increasing awareness amongst the masses is anticipated to hamper the global lithium mining market growth.
• Challenges of Consumption, Contamination, and Diversion of Scarce Water Resources
• High Cost of Extraction & Processing