Lithium mining, the process of extracting lithium from hard rocks and brines, is gaining significant traction due to its expanding applications in various industries. The use of lithium in steel, batteries, lubricants, and aluminum products is creating lucrative opportunities in the global lithium mining market. Fairfield Market Research predicts that the market, valued at US$829.73 million in 2019, will reach US$1,630.30 million by 2025, growing at a CAGR of 26.3% from 2020 to 2025.
Growing Demand for Lithium in Diverse Applications
Lithiums unique properties, including thermal resistance, lightweight characteristics, and high standard performance, make it ideal for various applications. It is used in air regeneration systems for safety devices, submarines, miners, and space vehicles to remove carbon dioxide. Hospitals, shopping malls, and institutional facilities use lithium in absorption chillers as air conditioners and as a dehumidifier for moisture absorption. The increasing demand for lithium-ion batteries in electric vehicles (EVs) and other industries will drive the growth of the global lithium mining market.
Rising EV Production Boosts Lithium Mining
While the COVID-19 pandemic slowed electric vehicle (EV) sales, the market is expected to rebound as the world adapts to the virus. Lithium, a key component in lithium-ion batteries used in EVs, will play a crucial role in this growth. Lithium hydroxide and lithium carbonate are essential for battery cathode production, with hydroxide witnessing higher demand due to its importance in efficient lithium-ion batteries. As EV sales are projected to double by 2030, the lithium mining market is poised for significant expansion.
Sustainability Concerns Pose Challenges
Despite its valuable properties, lithium mining faces sustainability challenges. The extraction process is water-intensive, requiring approximately 500,000 gallons of water to produce one tonne of lithium. Toxic chemicals from evaporation pools can leak, polluting local water supplies and displacing indigenous communities due to water shortages. These socio-economic and environmental issues have raised questions about the sustainability of lithium mining, even as the world seeks alternatives to fossil fuels.
Australia Dominates Global Lithium Production
Australia accounted for over 50% of global lithium production in 2019, followed by China. However, the Lithium Triangle countries–Chile, Argentina, and Bolivia–hold significant potential for increasing global production. These arid regions face water scarcity, complicating the extraction process. North America is a major consumer of lithium, driven by EV demand and electronics sales, while Asia Pacific is witnessing rising adoption of lithium in various applications.
National Policies and Mining Processes Impact the Market
National policies and mining processes heavily influence the global lithium mining market. Countries like Bolivia and Chile, rich in lithium resources, are navigating challenges related to national control and foreign investments. The adoption of direct lithium extraction methods could help reduce environmental costs and enhance mining processes in these regions.
Key Players in the Lithium Mining Market
Major players in the global lithium mining market include Albemarle Corporation, SQM S.A., Ganfeng Lithium Co., Ltd., Tianqi Lithium, Mineral Resources, Lithium Americas Corp., Livent, and Orocobre Limited Pty Ltd.
Browse Global Lithium Mining Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021-2025-[2023 UPDATE Available-Forecast 2023-2030*] (By Source Coverage, Type Coverage, End-use Coverage, By Geography, Leading Companies): https://www.fairfieldmarketresearch.com/report/lithium-mining-market
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