Lithium Mining: Global Market Scenario, Trends, Opportunity, Growth and Forecast, 2020-2030

Market Definition

The green energy storage sector and other associated technological breakthroughs depend heavily on lithium. As a result, it is quickly becoming into a metal that is vital to the world economy. There are many applications for lithium in both technological and chemical fields. Batteries, lubricants, greases, medicines, air purification, energy storage, etc. all employ lithium in a variety of forms. Lithium is mostly used in heat-resistant glassware and ceramics, such as cooktops and oven wear.

Market Insights

The mining sector is one of the foundations of economic growth in every country. The mining sector appeared to be steady throughout the early stages of the COVID-19 pandemic, with the pandemic’s greatest effects being shown in global feasibility studies or new mine development operations. The impact of the pandemic on the lithium mining sector was anticipated to be short- to medium-term due to this and the fact that China’s high demand more than compensated other countries’ low demand. The holdup or delay of exploration and development efforts, however, may increasingly be thought to have long-term effects. In addition, lithium end-user industries like batteries, lubricants, ceramics, etc. witnessed slow or negative growth in 2020.

The global lithium mining market segmented by brine was valued at $390.9 million in 2022 and is expected to at a CAGR of more than 20% during the forecast period. Brines contain a lot of lithium in commercial amounts as well as a lot of lithium carbonate. Interior saline desert basins are home to the most common type of brine deposit that is exploited for lithium. These basins once had water, but the pace of evaporation overtook the rate of recharging, leaving a dry lakebed in their wake. In addition to being known as salars, these dried lake beds are also known as salt pans, salt flats, salt marshes, alkali flats playas, and salt pans.

The global lithium mining market can be further segmented on the basis of type into lithium carbonate and lithium hydroxide. Lithium carbonate was leading the market, with 63.5% share in 2022, and it is expected to lead the market during the forecast period as well.

Consumer gadgets, laptop computers, mobile phones, and power tools have been driving forces behind developments in lithium-ion battery technology since the late 1990s. These improvements in performance and energy density have benefited the BEV and HEV sectors. Lithium-ion batteries, in contrast to earlier battery chemistries, particularly nickel-cadmium batteries, can be discharged and recharged frequently and at any degree of charge.

The most used lithium-ion batteries nowadays are used in electric vehicles and consumer electronics, which forces manufacturers to produce new ones frequently. According to industry researchers, the amount of LIBs utilised will exceed 10 million metric tonnes by 2030.

Market Dynamics: Drivers

Governmental Investment Across the Lithium Mining Industry

The market is anticipated to increase as a result of rising mining activity and government investment in the mining sector. The demand for lithium compounds is also being driven by growing government measures to phase out fossil fuels. For instance, to support its EV industry, the government of India stated in February 2020 that it will purchase mining assets in the Lithium Triangle countries (Argentina, Chile, and Bolivia) including lithium and cobalt mines. Similar plans were made by the German government to obtain $1.1 billion for domestic battery cell production by German businesses and $570 million for research into current and future EV batteries in June 2019.

Market Dynamics: Challenges

Harmful Impact of Mining Industry on Environment

The negative effects of mining on the environment and the concentration of lithium in politically unstable areas are two of the main factors limiting the growth of the lithium mining sector. Market expansion is anticipated to be constrained by the implementation of stringent regulations to minimise water waste and pollution brought on by the washing of hard rock and lithium brine during lithium mining. Production of lithium compounds necessitates the transportation of substantial quantities of dirt and rock as well as the use of millions of gallons of water to extract the metal. For instance, 500,000 gallons of water are needed to manufacture one tonne of lithium, which can support 3,000–4,000 people for an entire year. Over 60% of the water in the Salar de Atacama mining project in Chile is used by mining operations. These activities degrade already limited water supplies, which are essential to local people and species in an area with yearly rainfall of less than 15 millimetres. As a result, lithium mining activities typically affect local ecosystems, pose a threat to surrounding endangered species, and cause havoc in nearby communities.

Market Segmentation

• Based on Source Type, the Global Lithium Mining market is segmented into
  • Brine
  • Hard rock
• Based on Type, the Global Lithium Mining market is segmented into
  • Lithium carbonate
  • Lithium hydroxide
• Based on Vertical, the Global Lithium Mining market is segmented into
  • Batteries
  • Glass and Ceramics
  • Lubricants and Grease
  • Polymers
  • Flux Powder
  • Other End Uses
• Based on Geography, the Global Lithium Mining market is segmented into
  • Asia-Pacific
  • North America
  • Europe
  • Latin America
  • Middle East & Africa
• All market revenue has been given in US Dollar.

Historical Year: 2020-2021
Base Year: 2022
Estimated: 2023
Forecast- 2024-2030

Key Questions this Study will Answer

• What are the key overall market statistics or market estimates (Market Overview, Market Size- By Value, Market Size-By Volume, Forecast Numbers, Market Segmentation, Market Shares) of Global Lithium Mining Market?
• What is the region wise industry size, growth drivers and challenges key market trends?
• What are the key innovations, opportunities, current and future trends and regulations in the Global Lithium Mining Market?
• Who are the key competitors, what are their key strength and weakness and how they perform in Global Lithium Mining Market based on competitive benchmarking matrix?
• What are the key results derived from the market surveys conducted during Global Lithium Mining Market study?