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Lithium Hydroxide Market Size (2024 - 2029)

The lithium hydroxide market is projected to experience significant growth over the forecast period, driven by the rising demand for electric vehicles and power tools that utilize lithium-ion batteries. Despite the initial setback due to the COVID-19 pandemic, which reduced demand across various sectors, the market has rebounded as economic activities resumed. The Asia-Pacific region leads the market, primarily due to the increasing demand from the electric vehicle sector. However, concerns about the toxicity of lithium hydroxide and high production costs may pose challenges to market expansion. Opportunities are anticipated from developments in lithium deposits and the growing demand for portable electronic devices.

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Market Size of Lithium Hydroxide Industry

Lithium Hydroxide Market Summary
Study Period 2019 - 2029
Market Volume (2024) 196.5 LCE kilotons
Market Volume (2029) 564.78 LCE kilotons
CAGR (2024 - 2029) 23.51 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration High

Major Players

Lithium Hydroxide Market Major Players

*Disclaimer: Major Players sorted in no particular order

Lithium Hydroxide Market Analysis

The Lithium Hydroxide Market size is estimated at 196.5 LCE kilotons in 2024, and is expected to reach 564.78 LCE kilotons by 2029, growing at a CAGR of 23.51% during the forecast period (2024-2029).

COVID-19 hampered the lithium hydroxide market. The pandemic led to reduced demand for lithium-ion batteries that are used in electric vehicles and consumer electronics. Automotive production declined, consumer spending on discretionary items decreased, and industrial activity slowed down, resulting in lower demand for lithium hydroxide and other battery materials. However, as lockdown measures were lifted, economic activities gradually resumed across regions. This led to increased demand for electric vehicles and consumer electronics, driving the demand for lithium hydroxide.

Major factors driving the lithium hydroxide market are the increasing demand for electric vehicles that use lithium-ion batteries and the increasing demand for power tools that use lithium hydroxide NCA cathode.

However, rising concerns regarding the toxicity of lithium hydroxide and the high production costs are expected to restrain the growth of the lithium hydroxide market.

Development in lithium deposits and the rising demand for portable electronic devices are expected to offer various opportunities to the market players in the upcoming period.

Asia-Pacific dominates the lithium hydroxide market due to the increasing demand from the EV sector.

Lithium Hydroxide Industry Segmentation

Lithium Hydroxide is an inorganic chemical compound that consists of lithium, hydrogen, and oxygen. Lithium hydroxide is a white, crystalline solid with a high solubility in water. Lithium hydroxide is primarily used in the production of lithium-ion batteries, which are rechargeable batteries commonly found in electric vehicles (EVs), portable electronic devices (such as smartphones, laptops, and tablets), and energy storage systems. It serves as a key component in the cathode material of lithium-ion batteries, enabling the storage and release of electrical energy.

The Lithium Hydroxide Market is segmented by applications and geography. On the basis of application, the market is segmented into batteries, lubricating grease, purification, and other applications (polymer production). The report also covers the market size and forecasts for the Lithium Hydroxide Market in 27 countries across the major regions. 

For each segment, the market sizing and forecasts have been done on the basis of volume (LCE tons).

Application
Lithium-ion Batteries
Lubricating Greases
Purification
Other Applications (Polymer Production)
Geography
Asia-Pacific
China
India
Japan
South Korea
Malaysia
Thailand
Indonesia
Vietnam
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
Italy
France
Spain
Turkey
Russia
NORDIC
Rest of Europe
South America
Brazil
Argentina
Colombia
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Nigeria
Qatar
Egypt
UAE
Rest of Middle-East and Africa
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Lithium Hydroxide Market Size Summary

The lithium hydroxide market is poised for significant growth, driven primarily by the increasing demand for lithium-ion batteries, which are essential for electric vehicles and portable electronic devices. The market experienced a temporary setback due to the COVID-19 pandemic, which reduced demand for automotive production and consumer electronics. However, as economic activities resumed, the demand for electric vehicles and consumer electronics surged, propelling the need for lithium hydroxide. The market is further bolstered by the transition to electric mobility, supported by government incentives and stricter emissions regulations worldwide. Despite challenges such as the toxicity concerns and high production costs of lithium hydroxide, advancements in lithium deposits and the growing market for portable electronic devices present lucrative opportunities for industry players.

Asia-Pacific dominates the lithium hydroxide market, with countries like China, Japan, South Korea, and Australia leading in production and consumption. The region's robust electric vehicle market and rapid expansion of renewable energy capacity, particularly in China and India, drive the demand for lithium-ion batteries and, consequently, lithium hydroxide. The region's well-established lithium mining and processing industries contribute significantly to the global supply. Major players in the market, including SQM S.A., Albemarle Corporation, Ganfeng Lithium Group Co., Ltd, Livent, and LevertonHELM Limited, are actively expanding their production capabilities to meet the rising demand. Recent developments, such as Nemaska Lithium's new production facility and collaborations with automotive giants like Ford, underscore the market's growth trajectory and the strategic efforts by key players to capitalize on emerging opportunities.

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Lithium Hydroxide Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Drivers

      1. 1.1.1 Increasing Demand for Electric Vehicles

      2. 1.1.2 Increasing Demand for Power Tools

    2. 1.2 Restraints

      1. 1.2.1 Rising concern About the Toxicity

      2. 1.2.2 High production Costs

    3. 1.3 Industry Value Chain Analysis

    4. 1.4 Porter's Five Forces Analysis

      1. 1.4.1 Bargaining Power of Suppliers

      2. 1.4.2 Bargaining Power of Consumers

      3. 1.4.3 Threat of New Entrants

      4. 1.4.4 Threat of Substitute Products and Services

      5. 1.4.5 Degree of Competition

  2. 2. MARKET SEGMENTATION (Market Size in Volume)

    1. 2.1 Application

      1. 2.1.1 Lithium-ion Batteries

      2. 2.1.2 Lubricating Greases

      3. 2.1.3 Purification

      4. 2.1.4 Other Applications (Polymer Production)

    2. 2.2 Geography

      1. 2.2.1 Asia-Pacific

        1. 2.2.1.1 China

        2. 2.2.1.2 India

        3. 2.2.1.3 Japan

        4. 2.2.1.4 South Korea

        5. 2.2.1.5 Malaysia

        6. 2.2.1.6 Thailand

        7. 2.2.1.7 Indonesia

        8. 2.2.1.8 Vietnam

        9. 2.2.1.9 Rest of Asia-Pacific

      2. 2.2.2 North America

        1. 2.2.2.1 United States

        2. 2.2.2.2 Canada

        3. 2.2.2.3 Mexico

      3. 2.2.3 Europe

        1. 2.2.3.1 Germany

        2. 2.2.3.2 United Kingdom

        3. 2.2.3.3 Italy

        4. 2.2.3.4 France

        5. 2.2.3.5 Spain

        6. 2.2.3.6 Turkey

        7. 2.2.3.7 Russia

        8. 2.2.3.8 NORDIC

        9. 2.2.3.9 Rest of Europe

      4. 2.2.4 South America

        1. 2.2.4.1 Brazil

        2. 2.2.4.2 Argentina

        3. 2.2.4.3 Colombia

        4. 2.2.4.4 Rest of South America

      5. 2.2.5 Middle-East and Africa

        1. 2.2.5.1 Saudi Arabia

        2. 2.2.5.2 South Africa

        3. 2.2.5.3 Nigeria

        4. 2.2.5.4 Qatar

        5. 2.2.5.5 Egypt

        6. 2.2.5.6 UAE

        7. 2.2.5.7 Rest of Middle-East and Africa

Lithium Hydroxide Market Size FAQs

The Lithium Hydroxide Market size is expected to reach 196.5 lce kilotons in 2024 and grow at a CAGR of 23.51% to reach 564.78 lce kilotons by 2029.

In 2024, the Lithium Hydroxide Market size is expected to reach 196.5 lce kilotons.

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Lithium Hydroxide Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)