5 Best Ways to Understand Lithium Mining Market

Introduction to Lithium - Lithium, whose symbol is Li, is a chemical element of group 1 in the periodic table. It is a low-density metal in the alkali metals group, and it is lightest of the solid elements. Lithium is a soft and white metal, and several of its alloys and compounds are produced on an industrial scale. Lithium is a key factor in the green energy storage industry. It has significant strategic value due to its potential to contribute to a country’s economic development. It has a range of uses in chemical and technical applications. Lithium in various forms is used in batteries, lubricants, greases, pharmaceuticals, and air treatment energy storage.

Growing Factors - The growing global market for lithium mining is attributed to the rising demand for EVs and the increasing use of lithium-ion batteries in consumer electronics and medical devices. Most countries are taking initiatives to achieve net-zero carbon emission targets by 2050. Hence, worldwide sales of EVs are expected to reach 70 million by 2030 according to IEA. The Li-ion batteries are the preferred choice for EVs. Almost 70% of the total lithium produced globally is used for battery production due to its lightweight and strong electrochemical potential.

Global Presence - Lithium mining operations are spread across countries like Australia, Chile, China, and Argentina, with these regions being major players in the production of lithium. Australia accounts for almost half of the world’s share of lithium production. The largest lithium mines in Australia are the Greenbushes, Wodgina, Mount Marion, Mount Cattlin, Bald Hill, Earl Grey and Pilgangoora. China accounted for 12.7% of global lithium production in 2022. Many countries are dependent on China for li-ion battery manufacturing. China-based companies are now focusing on increasing their investments in the Lithium Triangle, which consists of Argentina, Bolivia and Chila and accounts for nearly half of the world’s known lithium.

4. Environmentally Friendly Applications of Lithium - Although renewable energy’s share of global energy generation is growing, fossil fuels still account for the major share. The utilization of fossil fuels is dangerous to the environment and the economy as well. Some of the issues associated with fossil fuels are increasing demand for oil, depletion of oil reserves, political instability in oil-producing countries and GHG emissions. Lithium is a means of curbing the negative impact of fossil fuels on the environment. The lithium-ion battery application in EVs and hybrid vehicles is expected to reduce the environmental impact of transportation. In addition, lithium-ion batteries provide energy storage from renewable energy sources like wind and solar.

5. Future Market Forecast (By BCC Research) - The global market for lithium mining is expected to grow from $5.7 billion in 2023 to reach $9.1 billion by 2028, at a compound annual growth rate (CAGR) of 10.0% during the forecast period (2023 to 2028). Two factors influencing the lithium mining market are the increasing level of consumer interest in EVs and the increasing use of lithium in consumer electronics and medical devices.

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