Market Overview:
Lithium hydroxide is a white powder lithium salt commonly used in industrial applications. It is the precursor for manufacturing lithium carbonate, which is further used in lithium-ion batteries. Lithium hydroxide helps power electric vehicles, e-bikes, energy storage systems and consumer electronics.

The lithium hydroxide market is estimated to be valued at US$ 0.61 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The lithium hydroxide market is primarily driven by the rising demand for lithium-ion batteries from the automotive industry. With the global push towards adoption of electric vehicles to reduce emission, the demand for lithium hydroxide as a key precursor material for lithium-ion batteries is expected to grow substantially over the forecast period. Another major driver is the increasing uptake of grid-scale energy storage led by the growth in renewable energy sector. Lithium hydroxide based batteries are increasingly used for long-term commercial and residential electricity storage applications. The two drivers of electric vehicles and grid storage are expected to fuel the demand for lithium hydroxide over the next decade.

SWOT Analysis

Strength: Lithium hydroxide has high demand from battery manufacturers as it is mainly used in lithium-ion batteries for electric vehicles, portables devices etc. The growing EV industry is driving significant growth of the lithium hydroxide market. It has low environmental impact and recyclable nature. Lithium hydroxide offers higher energy density and specific energy as compared to other battery materials.

Weakness: Fluctuations in lithium raw material prices can affect the profitability of lithium hydroxide manufacturers. Dependency on China for raw material supply is a concern. Production of lithium hydroxide requires large capital investments and higher entry barriers.

Opportunity: Increasing sales of electric vehicles worldwide present huge growth opportunities for lithium hydroxide manufacturers. Growing demand for Energy Storage Systems for renewable energy further boost the market. Developing Asia Pacific region especially China will majorly contribute to the rising demand.

Threats: Environmental regulations regarding lithium mining can hamper the raw material supply. Slow electric vehicle adoption in developing nations is a threat. Switch to alternative battery technologies like solid-state batteries can impact lithium hydroxide demand. Intense competition among manufacturers squeezes profit margins.

Key Takeaways

The Global Lithium Hydroxide Market Size is expected to witness high growth, exhibiting a CAGR of 10% over the forecast period, due to increasing demand for lithium-ion batteries from electric vehicles industry. Bullish EV sales outlook especially in China, Europe and North America is a key factor driving significant demand for lithium hydroxide.

Regional analysis - Asia Pacific dominates the global lithium hydroxide market and is expected to remain the largest as well as fastest growing market during the forecast period. China accounts for the major share of global lithium hydroxide production due to availability of lithium resources and large consumer base for batteries in the country.

Key players operating in the lithium hydroxide market are SQM S.A., Albemarle Corporation, Leverton-Clarke Speciality Chemicals., HELM AG, and Ganfeng Lithium Co., Ltd. SQM S.A. and Albemarle Corporation are the largest producers of lithium hydroxide globally. Ganfeng Lithium Co. is rapidly expanding its production capacity to cater growing battery industry demand from China.

For More Insights, Read: https://www.trendingwebwire.com/lithium-hydroxide-market-trends-growth-and-regional-outlook-2023-2030/