EVs Driving Global Growth of Lithium Market

An anticipated up-tick in adoption of electric vehicles is expected to aid boost the global market for lithium by 10.7% CAGR between the beginning of 2018 and the end of 2026.

According to study by Transparency Market Research the increase builds on a market valued at $2.98Bn in 2017. Consumers are now well acquainted with lithium-ion battery packs used to power the majority of today’s EVs.

While the report assessed the impact of various applications of lithium in glasses and ceramics, greases, and air purifiers, it said the energy storage application segment creates maximum demand with market share of a substantial 42.5% in 2017. With respect to geography, Asia Pacific leads the global lithium market, a region that not only produces but also consumes much of the world’s lithium.

The growing adoption of electric assisted vehicles, including hybrid and plug-in hybrid on top of pure battery electric vehicles is largely responsible for predictions of continued growth in the market. The report stated: “Light weight and high density of lithium makes it an ideal constituent of batteries.” The only challenge for the market is the proper disposal of lithium-ion batteries used in cars increasing the technology’s carbon footprint and risking soil pollution and raising the specter of it entering the food chain.

However, another factor having a positive impact on the global lithium market is the continued thrust on research and development on energy storage applications. Developed nation governments in the US and Europe are at the forefront of these initiatives because of their emphasis on pollution control by rolling out effective electric vehicles that offer good mileage.

— Paul Myles is a seasoned automotive journalist based in London. Follow him on Twitter @Paulmyles_

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