Lithium Aluminum Hydride Market

Lithium Aluminum Hydride Market Outlook

The global lithium aluminum hydride market is set to estimate a valuation of US$ 171.7 million in 2023 and it is anticipated to grow at a CAGR of 5.2% to reach US$ 285.5 million by the end of 2033.

The growth is attributed to the increased use of LAH in the automotive industry and the surging demand for fuel cells.

Report Attributes	Details
Market Size (2022A)	US$ 165.0 Million
Estimated Market Value (2023E)	US$ 171.7 Million
Forecasted Market Value (2033F)	US$ 285.5 Million
Global Market Growth Rate (2023-2033)	~5.2% CAGR
North America Market Share (2023)	~34.1%
East Asia Market Growth Rate (2023-2033)	~5.1% CAGR
United States Market Growth Rate (2023-2033)	~6.1% CAGR
East Asia Market Share (2023)	~19.2%
Key Companies Profiled	Albemarle Corporation American Elements Cymit Química S.L. Merck KGaA Mitsubishi Chemicals SRL Pvt. Ltd. Thermo Fisher Scientific Tokyo Chemical Industry Co., Ltd.

Market Buoyancy Analysis

Lithium aluminum hydride consists of a lithium-ion and aluminum hydride ion and is a remarkable reducing agent and has better performance than other reducing agents such as sodium borohydride. It is widely utilized for the reduction of carboxylic acids and esters for their primary alcohols. LAH is highly inflammable and reactive. LAH is widely utilized in different end-use industries such as chemical, pharmaceutical, and electronics industries.

LAH can be prepared using two methods Schlesinger and high-pressure synthesis methods. In the Schlesinger method LAH is produced by reacting lithium with aluminum metal while in the high-pressure synthesis method, the lithium is reacted with aluminum in the presence of hydrogen and nitrogen and under high pressure.

• Short Term (2023-2026): Burgeoning demand from chemical and pharmaceutical industries is driving the market for lithium aluminum hydride.
• Medium Term (2026-2029): Asia Pacific and Europe are anticipated to witness high lithium aluminum hydride demand on the back of the presence of manufacturers and growing demand for electric vehicles.
• Long Term (2029-2033): Rising demand for potential hydrogen storage materials and the inclination of the transportation industry towards zero-emission vehicles will drive lithium aluminum hydride demand in the long term.

Over the 2018-2022 historical period, the global lithium aluminum hydride market registered a CAGR of 3.9%, according to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 5.2% CAGR between 2023 and 2033.

Market share analysis of lithium aluminum hydride based on end-use industry and region is provided in a nutshell in the above image. Under the end-use industry segment, the pharmaceuticals sub-segment dominates with a 39.1% market share in 2023.

“Lithium Aluminum Hydride Use Case as Hydrogen Storage: To Upsurge Demand”

The growing demand for energy storage solutions has led to an increase in the usage of hydrogen as a fuel. Lithium aluminum hydride, which can store up to 9% of its weight in hydrogen, is used as a hydrogen storage medium in fuel cells. When used in fuel cells, LAH can effectively and safely release large volumes of hydrogen. LAH is being studied as a possible hydrogen storage material for use in vehicles. LAH is superior to conventional hydrogen storage materials in a variety of ways due to its high storage capacity and quick hydrogen release.

The ease of use and safety of hydrogen storage and distribution are at the forefront of current research for alternate sources of hydrogen fuel due to the high pressures of the cylinders and the high flammability of the H2 gas. At room temperature and pressure, the hydrolysis of light metal hydrides like sodium borohydride, lithium borohydride, and LAH can produce hydrogen.

Refueling hydrogen gas just takes a few minutes, while recharging a battery can take anywhere from 30 minutes to 12 hours, depending on the battery's capacity and charge point speed. Thus, owing to the aforementioned factors the growing demand for the hydrogen fuel cell augments LAH sales growth.

 “Potential Use of LAH in Fuel Cells to Offer Beneficial Opportunities”

With the rising greenhouse gas emissions and the road transportation industry is one of the main causes of the emission and climate change. In order to minimize their reliance on fossil fuels and reduce emissions, numerous nations have declared their intention to stop producing gasoline and diesel vehicles after 2040 in accordance with the Paris Agreement. The manufacturing and sales of zero-emission vehicles must rise in order for this goal to be achieved.

Proton exchange membrane hydrogen fuel cells are one of the most promising ways to produce power for vehicles out of renewable resources. If the hydrogen source is pure, hydrogen fuel cells are an effective way to generate clean power, leaving just water as a waste product. However, there are issues with hydrogen transport and storage.

Lithium aluminum hydride is a fuel that can be used in fuel cells. In a fuel cell, LAH is used as an anode material. Fuel cells based on LAH function according to the same principles as other fuel cells. Electrical energy is created in a fuel cell from the energy released during the reaction of the anode and cathode components. Lithium aluminum hydride offers many advantages over other anode materials.

“High Cost & Harmful Effects of LAH May Hamper the Market”

In recent years, the price of aluminum and lithium has increased due to increased consumption, the Russia-Ukraine war, custom duty prices, and various other factors. Lithium and aluminum along with other raw materials are used in the production of lithium aluminum hydride.

LAH is highly flammable and reacts violently with organic substances, oxidizers, and water. Exposure to LAH can cause a severe burning sensation in the eyes and skin. Long-term exposure can lead to spasms, coughing, nausea, laryngitis, inflammation in the bronchi, and pulmonary edema.

Due to its highly reactive nature, storage and handling require extreme precautions. It needs to be handled by wearing protective gear such as impermeable gloves, glasses, fire-retardant coat in an inert atmosphere or in the presence of inert gases. It needs to be stored in sealed containers that limit its exposure to moist air, water, or combustible materials.

Country-wise Insights

Will the Rise in End-use Industries in the U.S. Drive High Demand for Lithium Aluminum Hydride?

The US is a leader in the automobile industry had reportedly sold around 15 million light trucks and cars in 2021. Electric vehicles are expected to make up more than 50.0% of total vehicles by 2030. The increasing use of LAH in electric vehicles will support market growth.

LAH is an excellent reducing agent and reduces the chemical to their corresponding alcohols and thus is utilized in chemical and pharma industries in different manufacturing processes. The growing chemical and pharmaceutical industry will further boost the market for lithium aluminum hydride.

The United States LAH market is expected to expand at a CAGR of 6.1% over the projected period.

Why is China Lithium Aluminum Hydride Market Expected to Be Highly Lucrative?

China is a major producer of lithium and had controlled over 65.0% of total lithium refining and processing capability in 2021. China is the largest producer of aluminum and produced around 39.0 million tons of aluminum in 2021.

Owing to the abundant presence of raw materials for LAH in China and low labor costs have made the manufacturers shift their production bases to China.

Due to such favorable factors, China’s market for lithium aluminum hydride is expected to register a CAGR of 5.3% over the forecast period.

Category-wise Insights

Why is the High-pressure Synthesis Method Dominating the Market?

Lithium aluminum hydride (LAH) is synthesized under high pressure using a process known as high-pressure synthesis. In this process, lithium metal and aluminum metal react in a nitrogen- or hydrogen-containing environment. The resulting end product is a solid, white powdered LAH that is highly reactive with both air and water.

It is the most widely used technique for making LAH. Due to its ease of use and efficiency, this method is favored above others.

Due to all of these factors, the high-pressure synthesis method sub-segment is anticipated to grow at a CAGR of 5.7% over the forecast period to reach a valuation of US$ 174.5 million by 2032.

Will Market Growth Be Led by the Pharmaceutical Industry?

Pharmaceutical preparations are made using the chemical compound lithium aluminum hydride. It has been demonstrated to reduce the activity of the enzyme DPP-IV, which breaks down the incretin hormone. It has also been demonstrated that lithium aluminum hydride has antiviral and anti-parasitic effects.

LAH prevents viral development and replication and has demonstrated its effectiveness against a variety of infectious disorders, including HIV and malaria. Lithium aluminum hydride's antiviral properties are due to its capacity to prevent protein production. Additionally, it has been demonstrated that this substance promotes the synthesis of additional growth factors including amino acid and EGF in human keratinocytes.

Owing to the above-mentioned factors, the demand for lithium aluminum hydride from the pharmaceutical industry is expected to expand at a CAGR of 5.1% in the upcoming period to reach a valuation of US$ 110.4 million by 2032.

Competitive Landscape

Prominent lithium aluminum hydride manufacturers are Albemarle Corporation, American Elements, Cymit Química S.L., Merck KGaA, Mitsubishi Chemicals, SRL Pvt. Ltd., Thermo Fisher Scientific, and Tokyo Chemical Industry Co., Ltd.

Key companies are concentrating on implementing a variety of inorganic development methods, such as mergers and acquisitions, partnerships, joint ventures, and product launches to enhance their position in the worldwide lithium aluminum hydride market.

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

Segmentation of Lithium Aluminum Hydride Industry Research

• By Purity:

  • 95%
  • 97%
  • 99%

• By Preparation Method:

  • Schlesinger Method
  • High-pressure Synthesis Method

• By End-Use Industry:

  • Electronics
  • Chemical
  • Energy & Power
  • Pharmaceutical
  • Others

• By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA