Lithium Mining Market

Lithium Mining Market Growth Outlook (2023 to 2033)

Based on the analysis by Fact.MR, the global lithium mining market size is valued to be US$ 1.2 billion in 2023 and it is anticipated to grow at a CAGR of 6.4% to reach US$ 2.1 billion by the end of 2033.

With a significant increase in the production of electric vehicles, the demand for lithium has significantly increased in recent years. The majority of the lithium produced is consumed for rechargeable batteries used in electric vehicles; according to estimates, batteries account for 46% of all lithium consumption worldwide.

Report Attributes	Details
Lithium Mining Market Size (2022A)	US$ 1.1 Billion
Estimated Market Value (2023E)	US$ 1.2 Billion
Forecasted Market Value (2033F)	US$ 2.1 Billion
Global Market Growth Rate (2023-2033)	6.4% CAGR
South Asia & Oceania Market Share (2023)	36.5%
Chile Market Growth Rate (2023-2033)	7.7%
Key Companies Profiled	Albemarle Ganfeng Lithium Nemaska Lithium Orocobre limited Sichuan Tianqi Lithium Industries SQM Lithium Americas Corp

Historic and Future Pathway Analysis for the Lithium Mining Market

Based on the data from US Geological Survey, it is estimated that global lithium reserves stand at 22 billion MT, of which, 5.7 billion MT are in Australia and 9.2 billion MT are located in Chile.

Lithium-ion batteries are widely used in larger-scale devices such as air mobility and energy storage unit applications as well as consumer electronics such as cameras, laptops, and mobile phones which have seen a surged demand in recent years. Hence, the flourishing lithium-ion batteries demand propels the growth of the lithium mining sector.

• Short Term (2023-2026): Demand across numerous end-use industries especially pharmaceuticals and electric vehicles is anticipated to drive the lithium mining market in a short go.
• Medium Term (2026-2029): Government investments and mining projects to meet the growing lithium demand are likely to drive the lithium mining industry during the forecast period.
• Long Term (2029-2033): Adoption of advanced and sustainable technology for mining which increases output and decreases carbon emission, coupled with the discovery of new lithium reserves to create lucrative opportunities for the market players.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 6.4% CAGR between 2023 and 2033.

Market Dynamics Overview

“Government Investments for White Gold to Drive the Lithium Mining Industry”

Lithium is often called white gold due to its demand and usability in energy as well as other industries. Lithium mining remains a prominent area of investment as lithium batteries are used in electric vehicles, battery-powered machinery, and others.

The government is investing in lithium mining to reduce EV battery prices which ultimately reduces EV prices. On the back of such factors governments and companies are investing heavily in lithium mining.

For instance :

• In March 2023, India's northern federal territory Jammu and Kashmir authorities are about to auction a lithium reserve block, which is estimated to reserve 5.9 million tons of lithium.
• In March 2022, the Indian and Australian governments are jointly investing about US$ 6 million to explore cobalt and lithium mines in Australia. Numerous related projects are ongoing under this partnership.

Hence, surging EV demand and growing government investments in lithium mining are likely to drive the lithium mining industry in the long run.

“Factors to Hamper Lithium Mining Industry Growth”

Countries such as Germany, Russia, Mexico, and others are anticipated to have tons of lithium reserves however, lithium mining in those countries is at the nascent stage or has yet not started. Owing to this lithium mining may witness undergrowth than estimated across prominent economies. This is a dominant factor hampering the lithium mining industry across various economies.

Lithium mining is gaining traction due to the growing number of electric vehicles demand. However, certain factors such as environmental, social, and economic, hamper the market's growth. Market players are witnessing environmental challenges which directly affect their operations, and delayed projects involve high costs.

Also, the introduction of sodium-ion batteries has a negative impact on the growth of the lithium mining industry. Recycling lithium-ion batteries and a circular economy to meet the lithium-ion demand can be restraining factors to the lithium mining market growth in the long run.

Country-wise Insights

Why China is Prominent Player in Lithium Mining?

China remains a major miner and supplier of lithium and it is estimated that by the end of the year 2025, China would supply nearly one-third of the world's lithium owing to its efforts to increase lithium extraction.

• Chinese-controlled mines, including African projects, plan to increase production from 194KT in 2022 to 705KT in 2025.
• Such efforts would increase China's share of the mineral necessary for electric vehicle batteries from 24% to 32% of the global supply. Also, Yichun a small city in China's Jiangxi's southernmost province is often called Asia's lithium capital.

The aforementioned factors portray China as a prominent country in lithium mining and it plays a crucial role in driving the lithium mining market.

What Makes Australia a Potential Lithium Mining Market?

With the soaring demand for clean energy storage and electric vehicles, Australia is advancing its lithium output to meet much of the world's demand for lithium.

• The world's second-largest lithium reserves are found in Australia. It produced 55,000 MT of lithium content in 2021, a significant increase from the 39,700 MT it produced in 2020, due to operations hampered by COVID-19 lockdowns. However, the operations were restored and mines ramp up production to meet demand, Australia's lithium production increased by another 24.5% in 2022.
• Australia is second only to Chile in terms of identified JORC-compliant lithium reserves with more than 3.8 million MT. The country's major lithium supply is exported to China as spodumene.
• The major miners Tianqi Lithium and Albemarle jointly own Talison Lithium, a subsidiary that operates the Greenbushes lithium asset in Australia. With more than 25 years of continuous operation, Greenbushes is the longest-running mining region in Western Australia.
• Piedmont Lithium is set to fulfill Tesla's lithium appetite in the coming years. The two parties made certain amendments in their previous agreement and now Piedmont had agreed to deliver about 125,000 metric tons of SC6 to Tesla from 2023 to 2025.

Such factors are creating immense opportunities for electric vehicle battery manufacturers to establish their base in Australia and meet their lithium demands. Australia reflects immense growth opportunities for lithium mining companies through various investments and projects.

Category-wise Insights

Why Lithium Mining is Shifting towards Brine Deposits?

Lithium is mined from three different types of sources: hard rocks, brines, and sedimentary rocks. Hard rocks and continental brines are the primary sources of industrial production, and it is estimated that there are 22 million MT of lithium reserves worldwide.

About 66 percent of the world's lithium resources are found in lithium brine deposits, which are primarily located in salt flats in Argentina, Chile, Tibet, and China.

In general, lithium production from hard-rock ore has proven to be more expensive than lithium extraction from brine sources. Although lithium production from hard rock once dominated the market, most lithium carbonate is now extracted from continental brines in Latin America.

The lower production costs are primarily shifting the trend of lithium extraction from hard rocks to brines. Hence, during the forecast period, it is estimated that brine source will turn the table and dominates the market.

Why Lithium Carbonate is Witnessing High Demand?

Lithium carbonate is a widely mined and used type of lithium as a whole. Lithium carbonate is a crucial industrial and commercial chemical. Its prominent use is as a precursor to compounds used in lithium-ion batteries. Other than batteries, lithium carbonate-derived glasses derived are useful in ovenware.

Both low-fire and high-fire ceramic glaze have lithium carbonate as a common ingredient. In combination with silica and other materials, lithium carbonate makes low-melting fluxes. Because of lithium carbonate's alkaline characteristics, metal oxide colorants, especially red iron oxide, can be altered in the glaze.

When prepared with lithium carbonate, cement sets more quickly and is useful for tile adhesives. It produces LiF when combined with aluminum trifluoride, creating a superior electrolyte for processing aluminum.

Also, there are huge reserves for lithium carbonate which drives segmental growth. For instance, there is 8.8 Mt of lithium carbonate resources at Sonora, Mexico, and 3.7 million tonnes of LCE, in Nevada, USA.

Eminent Players Key Stratagems

Lithium miners are focusing on enhancing their output to bridge the supply-demand gap and gain high-profit margins. Other than this the major focus area of miners towards the adoption of sustainable extraction equipment, vehicles, and process as white gold is associated with sustainability.

Market titans are also bestowed with government investments and projects for which companies are adopting ground-breaking strategies to win government projects and remain competitive in the global market.

For instance :

• In March 2023, E3 LITHIUM LTD. a lithium developer and extraction technology innovator won US$ 2.5 million from Natural Resources Canada’s Critical Minerals Research Development and Demonstration (CMRDD) program.
• In January 2023, Ioneer an Australian company is set to receive a conditional loan of US$ 700 million from the U.S. Department of Energy to pursue a lithium mining project in Nevada, USA.

Fact.MR has provided detailed information about the price points of key manufacturers of lithium mining positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Lithium Mining Industry Research

• By Source :

  • Brine
  • Hard Rock
  • Others

• By Application :

  • Lithium Carbonate
  • Lithium Hydroxide
  • Lithium Chloride
  • Lithium Concentrate

• By End-Use Industry :

  • Batteries Production
  • Glass & Ceramics
  • Grease
  • Polymers
  • Flux Powder
  • Refrigeration
  • Pharmaceutical
  • Aluminum Production
  • Cement Industry
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa