Lithium Americas Corp (LAAC)

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Lithium Market Size, Share & Trends Analysis Report By Product (Carbonate, Hydroxide), By Application (Automotive, Consumer Goods, Grid Storage), By Region, And Segment Forecasts, 2021 - 2028
Published Date: Nov, 2021Base Year for Estimate: 2020Report ID: GVR-4-68038-581-6Format: Electronic (PDF)Historical Data: 2017 - 2019Number of Pages: 116

https://www.grandviewresearch.com/industry-analysis/lithium-market





Report Overview
The global lithium market size was valued at USD 2.7 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 14.8% from 2021 to 2028. Electrification of vehicles is projected to attract a significant volume of lithium-ion batteries, thus anticipated to drive the market over the forecast period. The automotive application segment is expected to witness substantial growth over the forecast period, driven by stringent regulations for ICE automakers imposed by government bodies to reduce carbon dioxide emissions from vehicles. This has shifted the interest of automakers toward producing EVs, which is anticipated to benefit the demand for lithium and related products. Government subsidies for EVs, along with investments in this space, are likely to act as an additional booster to the growth of the market.

U.S. lithium market, by product, 2018 - 2028 (USD Million)
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The U.S. holds major significance in battery production after China, which makes it one of the key lithium-consuming countries in the world. The country has huge reserves of lithium. According to the USGS, lithium resources from brines and minerals account for 7.9 million tons in the U.S., as of 2020. However, the country mines only about 1.0% of lithium used in the world.

In 2020, lithium production took place at only one location in the U.S., which is a brine operation in Nevada. However, the country is expected to boost its mining capabilities in the industry over the coming years. The market players in the U.S. are focusing on getting a hold on the battery supply chain owing to the increasing production of EVs in the country and transportation of batteries is dangerous.

In 2018, the Interior Department listed lithium as a critical mineral, which paced up the mine permitting process. In January 2021, the bureau of land management approved the Thacker Pass Mine proposed by Lithium Nevada Corporation. The mine is believed to serve as the largest source of lithium supply in the U.S. and is expected to be able to produce about 60 kilotons of battery-grade lithium carbonate by 2026.

Product Insights
The carbonate product segment dominated the market and accounted for the largest share of over 58.0% in 2020, in terms of volume. Lithium carbonate (Li2CO3) is the most stable inorganic compound and is used in forming other compounds, such as Lithium Hydroxide (LiOH) and even pure metal. Lithium associated with carbonates forms salts and is also used in the treatment of bipolar disorder. This compound is also used in lithium-ion batteries and has several applications in the construction sector for waterproofing slurries and as adhesives.

LiOH is a white hygroscopic crystalline material and an inorganic compound mostly used by lithium-ion battery manufacturers; it is commercially available as anhydrous and monohydrate. It has usage in transportation applications in the manufacturing of submarines and spacecraft. In addition, rapid development in battery technologies is propelling the demand for LiOH, thus, driving the market.

Many automotive players are inclined to adopt LiOH for battery manufacturing, which is expected to benefit market growth positively. For instance, BMW Group signed an agreement with Ganfeng Lithium, a lithium extracting company in China, for supplying LiOH for battery cells owing to the rising penetration of EVs. Rising awareness toward eco-friendly vehicles is driving the demand for EVs on account of which, BMW has planned to introduce 25 electrified models with lithium-ion batteries.