Lithium Market Size growing at 19.57% CAGR by 2030, Driven by EV Expansion and Rising Hydroxide Demand | Reports Mordor Intelligence

The latest research by Mordor Intelligence covers the “Lithium Market Size,” delivering insights into market dynamics, drivers of growth, and long-term forecasts.

Lithium Market Introduction 

According to Mordor intelligence report, the Lithium Market is expected to increase from 0.85 million LCE tons in 2025 to 2.08 million LCE tons by 2030, supported by a 19.57% CAGR during the forecast period As governments introduce policies that mandate EV adoption and grid-scale storage capacity, the lithium industry gains long-range visibility on supply requirements. Meanwhile, new refining projects and direct-lithium-extraction efforts promise faster production cycles and improved resource efficiency. 

Key Trends Shaping the Lithium Market 

EV Expansion Continues to Drive Bulk Demand 

Electric vehicles remain the largest demand generator for lithium chemicals, and their share is set to rise further as battery pack prices move closer to mass-market affordability. Automakers are signing multi-year supply agreements to secure stable access to battery-grade materials, showing how crucial lithium has become to long-term electrification strategies. 

High-nickel cathode adoption also strengthens the need for lithium hydroxide, which is preferred for premium EV batteries due to its higher reactivity. As more regions commit to zero-emission vehicle targets, the automotive segment is positioned to maintain its leadership across the lithium market. 

Grid-Storage Policies Widen the Demand Base 

Utility-scale energy storage is becoming a mandatory requirement for renewable integration. Countries in the United States, Europe, and Asia are enforcing storage targets that include multi-hour systems, where lithium-ion remains the most cost-effective solution. 

These mandates offer stable offtake opportunities for lithium suppliers, reducing the uncertainties typically tied to cyclical markets. As solar and wind penetration increases worldwide, energy-storage installations are expected to add consistent yearly demand for both lithium carbonate and lithium hydroxide. 

Shift Toward Hydroxide Gains Momentum 

Battery producers are increasingly selecting lithium hydroxide to support high-nickel cathodes used in performance-focused EVs. Though carbonate continues to hold a large share due to traditional industrial applications, hydroxide is expected to expand faster throughout the forecast period. 

Refining projects near mining sites in Australia, North America, and Asia aim to shorten supply chains and support the growing shift toward hydroxide-based battery manufacturing. 

Emerging DLE Projects Accelerate Supply Readiness 

Several companies are testing direct-lithium-extraction (DLE) technologies, which aim to shorten project start-up times and improve water management. While these technologies are still scaling, early results show strong recovery rates and potential to unlock new brine resources. 

If commercialized at scale, DLE adoption could broaden global supply options and help feed rising EV and storage demand over the next decade. 

Explore in-depth insights and regional perspectives, including localized editions like the Japanese market version: https://www.mordorintelligence.com/ja/industry-reports/lithium-market?utm_sourc=industrytoday  

Market Segmentation | Lithium Market Breakdown 

By Compound 

• Lithium Carbonate: Widely used in industrial applications including glass, ceramics, and some battery chemistries. 
• Lithium Hydroxide: Gaining faster traction due to compatibility with nickel-rich EV cathodes. 
• Lithium Chloride & Others: Utilized in specialty chemicals, pharmaceuticals, and air-treatment systems. 

By Application 

• Batteries: The leading application, supporting EVs, energy-storage systems, and consumer electronics. 
• Lubricants & Grease: Used for high-temperature industrial equipment. 
• Air Treatment: Important for humidity management in critical environments. 
• Pharmaceuticals, Glass, Ceramics, and Polymers: Provide steady baseline demand. 

By End-User Industry 

• Automotive: The dominant segment, supported by expanding EV manufacturing. 
• Energy Storage: Growing alongside renewable-integration requirements. 
• Consumer Electronics: Stable demand across laptops, smartphones, wearables. 
• Industrial & Medical: Smaller but consistent demand contributors. 

By Geography 

• Asia-Pacific: Holds the largest consumption share due to China’s strong refining base and regional battery manufacturing growth. 
• Europe: Seeing fast expansion driven by gigafactory investment and sourcing policies. 
• North America: Supported by domestic-content incentives and new refining projects. 
• South America & Africa: Key resource hubs with long-term supply potential. 

Top Key Players in Lithium Industry:

• Lithium Industry Leaders
• Albemarle Corporation
• SQM
• Ganfeng Lithium Group Co., Ltd.
• Tianqi Lithium Corporation Limited
• Arcadium Lithium (Rio Tinto)

Conclusion | Lithium Market Growth Outlook 

With long-term agreements becoming central to securing material availability, the market is moving toward deeper integration between miners, refiners, and battery producers. As the world moves toward cleaner transportation and renewable-based power grids, lithium will remain an essential material supporting the next wave of electrification. 

Our Trending Reports 

Chromium Market - The Report Covers Sodium Dichromate Market Analysis Report is Segmented by Application (Chemical, Metallurgical, Refractory, and Other Applications) and Geography (Asia-Pacific, North America, Europe, South America, and the Middle East and Africa). The Report Offers Market Size and Forecasts for Chromium in Volume (tons) for all the Above Segments. 

Kazakhstan Mining Market - The Kazakhstan mining market is segmented by mineral type (Coal, Ferrous Metal, and Non-Ferrous Metal). The report offers market size and forecast for the Kazakhstan mining market in USD million. 

Lithium Compounds Market - The Lithium Compounds Market report segments the industry into Compounds (Lithium Nitride, Lithium Metal, Lithium Carbonate, Lithium Hydroxide, Lithium Chloride, Butyllithium, Other Compounds), Application (Ceramics and Glass, Lubricants, Pharmaceuticals, Batteries, Chemicals, Metallurgy, Other Applications), and Geography (Asia-Pacific, North America, Europe, South America, Middle-East and Africa). 

Metal Magnesium Market - The Metal Magnesium Report is Segmented by Production Process (Thermal Pidgeon, Electrolytic, Secondary/Recycled, and Seawater Electro-Extraction), End-User Industry (Aluminum Alloys, Die-Casting, Iron and Steel, Metal Reduction, and Other End User Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The Market Forecasts are Provided in Terms of Volume (Tons).

About Mordor Intelligence:  

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.      

For any inquiries, please contact:  

media@mordorintelligence.com  

https://www.mordorintelligence.com/contact-us