EVs Drive Global Lithium Market To Grow At 14.8% CAGR Till 2028

Mobility Outlook Bureau
08 Jan 2022
10:56 AM
2 Min Read

Lithium proved to be an essential mineral for the electrification of vehicles as LiOH is used mainly by lithium-ion battery manufacturers.

Amte Power

Increasing popularity of electric vehicles (EVs) fuel the demand for lithium, leading the global lithium market size to expand at a compound annual growth rate of 14.8% from 2021 to 2028, according to data provided by Grand View Research. 

According to the financial news informational web portal, the global lithium market size was valued at $ 2.7 billion in 2020. 

Lithium proved to be an essential mineral for the electrification of vehicles as LiOH, a white hygroscopic crystalline material and an inorganic compound, is used mainly by lithium-ion battery manufacturers. Nowadays, many car manufacturers are venturing into battery manufacturing, like BMW Group, for example, which has signed an agreement with Ganfeng Lithium, a lithium extracting company in China, for supplying LiOH for battery cells due to the rising penetration of EVs, the report said.  

Asia Pacific Leads The Pack

Geographically, the Asia Pacific region dominated the market as it held the largest volume share of 56.3% in 2020 owing to the rapidly developing automotive, glass, and consumer goods industries in countries such as China, Japan, South Korea, and India. However, the US has major significance in battery production after China, making it one of the key lithium-consuming countries in the world. Last year, the bureau of land management approved the Thacker Pass Mine proposed by Lithium Nevada Corporation. The mine is believed to serve as the largest source of lithium supply in the US and is expected to produce about 60 kilotons of battery-grade lithium carbonate by 2026, the report said.

Grand View Research mentioned that Far Resources, now Foremost Lithium Resource & Technology, has received a permit from the Province of Manitoba to extract a bulk sample from its Zoro Lithium Project located in the historic mining district of Snow Lake, Manitoba.

Foremost Lithium plans to extract a 500-kg bulk sample of spodumene-bearing pegmatite from Dyke 1 on its Zoro Lithium Project. The bulk sample will be shipped to a reputable third party for metallurgical testing and process development. A 2020 peer-reviewed technical publication co-authored with SGS Mineral Services concluded that spodumene-bearing pegmatite from Zoro Dyke 1 can be processed using industry-standard metallurgy to produce a 6% battery-grade lithium (Li2O) concentrate. The goal for the upcoming 500 kg bulk sample is to demonstrate that pegmatite from the company's Zoro Lithium Project is suitable to produce battery-grade lithium hydroxide (LiOH), thereby making it viable to market its lithium to strategic partners before development.

Grand View Research noted that Snow Lake Lithium announced on December 20th, 2021, an update to its stakeholders on its progress toward commercial lithium production. In addition, snow Lake has entered into a contractual agreement with SGS Natural Resources in Lakefield to perform the necessary metallurgical testing required for the preliminary economic assessment or PEA and the subsequent pre-feasibility study, or PFS.  

Kandi Technologies Group,Grand View Research said, has announced on December 28th, 2021, that its wholly-owned subsidiary Jiangxi Province Huiyi New Energy entered mass production of its lithium iron phosphate battery IFR18650-2200mAh, one of the most advanced on the global market. 

Similarly, Lordstown Motors Corp and Hon Hai Technology Group, one of the largest electronics manufacturers in the world, announced on November 20th, 2021, that they have entered into a definitive Asset Purchase Agreement regarding LMC's facility in Lordstown, Ohio. 

Also, the portal noted that Aqua Metals announced on January 3rd, 2022, that it has commenced Aqualyzer equipment shipments to ACME Metal, the world's first licensed AquaRefining facility. 

Courtesy: Grand View Research. NB: Photo is representational; courtesy: Amte Power.

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