Lithium Mining Operations to Expand on Back of Rising Demand for Li-Ion Batteries, Opines Fact.MR
Published : 07 Oct 2021 Industry: Chemical & Materials
As per a new Fact.MR study on lithium mining, the global market is anticipated to reach a valuation of US$ 1.8 Bn in 2021, burgeoning at a rapid CAGR of 7% over the forecast period of 2021-2031.
According to Fact.MR, a market research and competitive intelligence provider, over the past half-decade, lithium prices increased on the back of rising demand for li-Ion batteries that are exclusively used in electric vehicles. Dynamic shift in automotive policies coupled with rise in fuel prices across regions surged demand for electric vehicles. Rise in demand for electric vehicles, has, in turn, cascaded the effect to rising procurement orders for batteries, which has led to increasing lithium prices.
In the scenario of lithium production, rampant price rise is an issue not only for consumers but also for lithium producers. To counter this issue of price rise, lithium mining giants such as SQM, Livent, Ganfeng, and Tianqui, among others, have enacted upon enhancing their investments for expanding their mining sites to stabilize price points well below 10% of the market ceiling price.
Apart from price rise, lithium mining giants have adopted efficient mining methods that not only enhance the recovery of lithium from brines but also effectively maintain their margins throughout mining terms. This is anticipated to positively impact mining operations as well as product supply.
From the supply and demand side, optimum mining conditions and rising demand for lithium-ion batteries will bolster the need for lithium mining.
Key Takeaways from Study
- The lithium mining market is estimated to expand 2.2X its current market value by 2031.
- Hard rock is the most prominent way of mining lithium, and this material dominates demand as far as lithium mining is concerned.
- Battery end use of lithium is anticipated to add an incremental opportunity of US$ 75 Mn each year till 2031.
- Top 5 players capture nearly 75% of lithium mining across the globe.
“Volatile prices of lithium to affect stakeholders’ standpoint over the long-term period,” says a Fact.MR analyst.
Lithium Mining: Gamble of Price
Lithium mining is an expensive operation, and land is obtained by mining companies through extensive documentation coupled with instances of lobbying. Such a competitive market entry and high fluctuation in price place the inventory of firms at stake.
Therefore, entry into the lithium mining business without appropriate price prediction statistical models places investment at risk. At this node, Fact.MR comes into action with strong research acumen, and the in-house proprietary statistical model assists mining agencies in maintaining inventory volumes per quarter, thus reducing the overall gamble associated with the lithium mining business.
More Valuable Insights Available
Fact.MR, in its new offering, presents an unbiased analysis of the global lithium mining market, presenting historical market data (2016-2020) and forecast statistics for the period of 2021-2031.
The study reveals essential insights on the basis of source (brine, hard rock and others), type (lithium carbonate and lithium hydroxide), and end use (battery, glass & ceramics, grease, polymer, flux powder, refrigeration and others), across key regions, namely, North America, Latin America, Europe, East Asia, South Asia & Oceania, and the Middle East & Africa.
About the Chemicals and Materials Division at Fact.MR
Expert analysis, actionable insights, and strategic recommendations of the highly seasoned chemicals and materials team at Fact.MR helps clients from across the globe with their unique business intelligence needs. With a repertoire of over thousand reports and 1 million-plus data points, the team has analysed the chemicals and materials industry across 50+ countries for over a decade. The team provides unmatched end-to-end research and consulting services. Reach out to explore how we can help.
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Client Research Partner – Chemicals and Materials