Lithium Market Report 2025

The lithium market size has grown rapidly in recent years. It will grow from $6.08 billion in 2024 to $6.89 billion in 2025 at a compound annual growth rate (CAGR) of 13.3%. The growth in the historic period can be attributed to the consumer electronics boom, portable electronics growth, renewable energy storage, and lithium-ion battery advancements.

The lithium market size is expected to see rapid growth in the next few years. It will grow to $10.19 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to continued growth in electric vehicles, renewable energy expansion, government initiatives and incentives, smart grid development, and increasing energy storage capacity. Major trends in the forecast period include advancements in lithium technologies, solid-state lithium batteries, diversification of lithium sources, integration of lithium in aerospace, and decentralized energy solutions.

The forecast of 10.3% growth over the next five years reflects a modest reduction of 0.2% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. Tariff-related disruptions in lithium supply chains can hamper growth in the EV and energy storage markets, which are highly demand-sensitive. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.

An upsurge in smartphone adoption is poised to drive the growth of the lithium market. Smartphones, multifunctional cellular devices with advanced computing capabilities and an operating system, significantly contribute to the demand for lithium-ion batteries. These batteries are essential components powering smartphones, amplifying the demand for lithium. For instance, in February 2023, as reported by Uswitch Limited, the UK witnessed a 3.8% rise in mobile connections, totaling approximately 71.8 million connections. Projections suggest that with the UK population expected to reach 68.3 million by 2025, nearly 95% of the populace, approximately 65 million individuals, will possess smartphones. This surge in smartphone adoption is a driving force behind the lithium market's growth.

The increasing demand for electric vehicles (EVs) is anticipated to fuel the expansion of the lithium market. As pivotal components of lithium-ion batteries, lithium plays a crucial role in powering these vehicles, aligning with the global shift toward sustainable transportation. For instance, per the European Environment Agency's October 2023 report, Europe witnessed a 28.35% increase in battery electric car registrations in 2022, totaling 1,126,682, compared to 878,092 registrations in 2021. Additionally, non-plug-in hybrid electric car registrations surged by 7% in 2021, representing 19% of new registrations. This surge in EV adoption signifies the driving force behind the growth of the lithium market.

Key players in the lithium market are intensifying their focus on introducing innovative residential-use batteries, aiming to gain a competitive advantage. These batteries, tailored for household applications, enhance energy storage within residences. For instance, in September 2022, Kstar, a China-based battery manufacturer, launched all-in-one lithium-titanate (LTO) batteries designed for residential use. These batteries boast an impressive 16,000 charge cycles, a substantial 5.4 kWh storage capacity, and a remarkable 90% depth of discharge. This innovation empowers homeowners to optimize energy management and reduce dependence on the grid.

Major entities in the lithium market are directing their attention toward introducing environmentally conscious solutions, particularly green lithium, to gain a competitive edge. Green lithium production methods prioritize sustainability and minimize environmental impact. For instance, in September 2023, Sigma Lithium Corporation, based in Canada, announced shipping 22,500 metric tons of Triple Zero Green Lithium to Glencore, a Switzerland-based mining company. This sustainably produced lithium employs 100% renewable energy, 100% recycled water, and 100% dry-stacked tailings, positioning it as an environmentally friendly product. This shipment marks a significant milestone in establishing a sustainable global lithium supply chain.

Major companies operating in the lithium market include Albemarle Corporation, Sociedad Química y Minera, FMC Corporation, Sichuan Tianqi Lithium Industries Inc., Tianqi Lithium Corporation, Livent Corporation, Allkem Limited, Jiangsu Ronghui General Lithium Industry Co. Ltd., Avalon Advanced Materials Inc., Lithium Americas Corp., EnerSys, Ganfeng Lithium Co. Ltd., Mineral Resources Limited, Neometals Ltd., Pilbara Minerals Limited, Altura Mining Limited, Bacanora Lithium Plc, Critical Elements Lithium Corporation, International Lithium Corp., Lithium Australia NL, Lithium Power International Limited, Nemaska Lithium Inc., North American Lithium Inc., Piedmont Lithium Limited, Power Metals Corp., Pure Energy Minerals Limited, Sayona Mining Limited, Standard Lithium Ltd., Wealth Minerals Ltd.

South America was the largest region in the lithium market in 2024.The regions covered in the lithium market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, Africa. The countries covered in the lithium market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report’s Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

The rapid escalation of U.S. tariffs and the ensuing trade tensions in spring 2025 are heavily affecting the mining sector, especially in areas such as equipment acquisition, export flows, and supply chain stability. Increased tariffs on imported heavy machinery, drilling tools, and specialized parts have driven up both capital and operational expenditures, leading to delays in project development and reduced production efficiency. Simultaneously, retaliatory tariffs from major trading partners have diminished global demand for U.S. sourced minerals particularly critical resources like lithium, copper, and rare earth elements intensifying revenue challenges. These impacts are hitting mid-sized and niche mining companies the hardest due to their reliance on international markets. In response, the industry is focusing on building domestic equipment supply chains, scaling up mineral recycling programs, and lobbying for tariff relief to regain competitiveness and safeguard long-term resource availability.

The lithium market research report is one of a series of new reports that provides lithium market statistics, including lithium global industry market size, regional shares, competitors with a lithium market share, detailed lithium market segments, market trends and opportunities, and any further data you may need to thrive in the lithium industry. This lithium global market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Lithium mining involves the extraction of lithium and its compounds, achieved through a series of chemical procedures that isolate lithium from a substance, preparing it for commercial sale. The extraction commonly involves utilizing brine, a solution with a high concentration of lithium carbonate, as a primary resource. Subsurface brines, located within the Earth's crust, stand as one of the key sources of lithium carbonate.

Various applications utilize lithium, including glass/ceramics, greases/lubricants, chemical synthesis, portable electronics, handheld devices, hybrid systems, battery electric vehicles (BEV), grid systems, and other power storage applications. Chemical synthesis denotes the process where one or more chemical reactions are employed to convert a starting material (reactant) into one or multiple products. The sources for this synthesis typically involve brine and hard rock. In terms of mining methods, these encompass both underground and surface mining techniques.

The Lithium market includes revenues earned by entities by produce glass, aluminum products, and batteries. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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