Global Lithium Mining Market to Generate Revenue of $494.59 Million by 2028 | Australia to Produces over 50% Lithium Carbon Equivalent by 2024
Global lithium mining market was valued at USD 340 Million in 2021, and it is expected to reach a value of USD 494.59 Million by 2028, at a CAGR of 5.5% over the forecast period (2022-2028).
Westford, USA, Dec. 20, 2022 (GLOBE NEWSWIRE) — Today, lithium is one of the most important minerals when it comes to the production of electric vehicles. Lithium-ion batteries are light, powerful and take less space than other battery types. Tesla, Panasonic and other car manufacturers in the global lithium mining market are betting big on this mineral. In 2021 alone, global lithium production was 100,000 metric tons. By 2025, that number is projected to increase to 200,000 million tons. However, there is a downside to all of this growth: lithium reserves are spotty and the mineral is difficult and expensive to extract.
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To grow lithium mining operations, car companies need to find new sources of the mineral. One promising solution is Argentina. The country has some of the world’s richest lithium reserves in the global lithium mining market and its climate is perfect for growing plants that produce lithium-rich raw materials like salt, soda ash and potash. Currently, the country produces only 10% of the global lithium but has 60% reserves of the global lithium. Argentinian mining company YPF announced that it was partnering with China’s mining giant Gold Reserve Inc. to develop a lithium mining operation in Patagonia. This isn’t the only project underway in Argentina; Rio Tinto Group has also agreed to invest $1 billion in a coal mine in Chile that will be used to produce lithium carbonate as well as copper and gold. These developments are indicative of the growing demand for lithium around the world. As more carmakers move away from traditional battery types and toward electric vehicles, they will need more lithium-ion batteries in order to power their vehicles.
Rapid Expansion EVs and Battery Manufacturing to Play Key Role in Global Lithium Mining Market
Global lithium mining market is forecast to grow significantly in the next decade thanks to increased demand from automotive and battery industries. The strong growth is expected to be driven by several factors, including increasing demand for electric vehicles and growing awareness of the importance of sustainable energy sources. In addition, technological innovations such as new production methods and cheaper batteries are expected to promote the development of the lithium market. The rise of electric vehicles is likely to have the most significant impact on the lithium market. The increasing popularity of EVs is likely to result in a large increase in demand for lithium-ion batteries, which are key components in these vehicles. The global demand for lithium-ion batteries was 303 million units in 2016, which increased to over 559 million units by 2021. In 2021, over 6.5 million electric vehicles were sold around the lithium mining market. However, China is emerged as the top consumers of lithium-ion batteries as the country sell over 3.1 million EVs each year.
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Although there are several competing technologies for developing advanced EV batteries, lithium-ion is currently the dominant element in this field. This is due to its high efficiency and versatility; it can be used in various types of EV batteries, including those with higher wattages. SkyQuest expects other industrial sectors in the lithium mining market, such as aerospace and electronics, to also adopt lithium-based technologies in the near future. This is because these sectors have a need for highly efficient and reliable batteries that can Last longer than traditional ones without requiring major modifications or replacements. Consequently, the increasing adoption of lithium-based technologies across various industrial sectors is likely to drive further growth in the global lithium market.
Price Hike is Likely in Lithium Hydroxide by 2024 in Global Lithium Mining Market | Australia to Produce over 47% of LCE
In 2021, the global lithium carbon equivalent (LCE) production output was 551,000 tons, which further increased to over 691,000 tons in 2021. As per our estimate, the global lithium mining market is estimated to witnessed a 32% jump in the global output of LCE and reach 915,000 tons in 2023. However, the global production will surpass LCE output milestone in 2024. Wherein, Australia is likely to account for over 47% of the total output thanks to large number of projects in pipeline.
Recently in November 2022, China witnessed a sudden price drop in the lithium due to strictly imposed COVID-19 restrictions. However, we have observed that Ex-works Chinese battery grade lithium hydroxide prices is still 170% higher year-to-date, which is currently priced at $81,000 a ton during the first two weeks of December, despite predictions of a sharp drop. According to battery supply chain and pricing specialists based in London, lithium carbonate prices have followed a similar trajectory in the lithium mining market. As of November, spodumene prices have increased 257% to $5,900 a ton FOB Australia for 6% concentrate.
It was reported by Benchmark that spodumene contract pricing mechanisms were successfully renegotiated with the lithium chemicals spot market, resulting in a shorter lag for spodumene pricing to reflect changes in the chemicals market.
The price of lithium is likely to increase by more than 50% by 2024 in the global lithium mining market. This is due to increases in supply and demand as electric vehicles continue to surge in popularity. The report predicts that Lithium hydroxide prices will reach $48,500 per ton by 2024, up from $17,370 in 2021. This is bad news for lithium-dependent companies like Tesla, Samsung, and Panasonic. They rely on the mineral for batteries in their vehicles, but the high price means that they are not making much money off of it. In fact, Tesla has been forced to lower its prices for its flagship Model 3 due to this competition. The decrease in lithium prices has also led some companies to look into alternatives. Hyundai is working on a battery powered by zinc and cobalt instead of lithium. These alternatives are still in development, but if they become successful, it could lead to an increase in the supply of lithium and a decrease in its price.
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Top Players in Global Lithium Mining Market
- Nordic Mining ASA (Norway)
- Wealth Minerals Limited (Canada)
- Galaxy Resources Limited (Australia)
- Lithium Americas Corp. (Canada)
- Jiangxi Ganfeng Lithium (China)
- Albemarle Corporation (U.S.)
- Tianqi Lithium (China)
- Sociedad Química y Minera (Chile)
- Mineral Resources Limited (Australia)
- Pilbara Minerals (Australia)
- FMC Corporation (U.S.)
- Nemaska Lithium Inc. (Canada)
- MGX Minerals Inc. (Canada)
- Orocobre Limited Pty Ltd (Australia)
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