Lithium hydroxide is a key component used in lithium-ion batteries to power various electronic gadgets and energy storage devices. It provides high energy density and rechargeability which drives its increasing demand from consumer electronics and electric vehicles industry.
The lithium hydroxide market is estimated to be valued at US$ 0.61 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing demand from energy storage applications is a major factor propelling the growth of the lithium hydroxide market. Lithium hydroxide finds widespread application in lithium-ion batteries used for energy storage across sectors like consumer electronics, automotive and grid storage. With rising emphasis on clean and renewable energy sources, the energy storage industry is gaining prominence. Lithium hydroxide based batteries are increasingly being adopted for large scale energy storage projects by utility companies and renewable power generators which is expected to boost the demand for lithium hydroxide over the forecast period.
Strength: Lithium hydroxide has wide applications in energy storage industry. It is a key component in lithium-ion batteries used in electronics and electric vehicles.
Weakness: High costs associated with extraction and processing of lithium. Dependence on limited resources. Volatility in raw material prices can impact the industry.
Opportunity: Growing demand for lithium-ion batteries from electric mobility and energy storage sectors will drive the lithium hydroxide market. Emergence of newer battery technologies offer opportunities.
Threats: Trade disputes and geopolitical issues around lithium resources. Substitution threat from alternate battery chemistries.
The Global Lithium Hydroxide Market Size is expected to witness high growth over the forecast period of 2023 to 2030 supported by increasing electric vehicle sales and expansion of energy storage solutions.
Regional analysis: Asia Pacific currently dominates the lithium hydroxide market owing to presence of major battery manufacturers and electric vehicle producers in countries like China. Chile and Argentina have large lithium reserves which cater to the growing global demand. The market is anticipated to grow the fastest in North America due to supportive government policies for EV adoption and energy storage projects.
Key players operating in the lithium hydroxide market are Halliburton Co., Weatherford International Ltd., National Oilwell Varco, Inc., Xi’an Kosun Machinery Co., Ltd., Tervita Corporation, TWMA Ltd., Step Oiltools, Soli-Bond, Inc. Specialty Drilling Fluids Ltd., Soiltech, Scomi Group BHD, Secure Energy Services, Inc., Schlumberger Ltd., Nuverra Environmental Solutions, Ridgeline Canada, Inc., Newalta, Hebei Gn, Solids Control Co. Ltd., Imdex Limited, Baker Hughes, Inc., Derrick Equipment Company, and Augean PLC. The key players are investing in increasing production capacities and developing next generation battery materials to gain higher market share.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it