Solution Mining Market Size, Share & Trends Analysis Report By Product (Magnesium, Lithium, Potash, Borates, Trona), By Region (North America, Europe, Asia Pacific, MEA), And Segment Forecasts, 2023 - 2030

Report Overview

The global solution mining market size was valued at USD 19.95 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 4.0% from 2023 to 2030. Solution mining is a process used to recover minerals, such as potash, copper, lithium, soda ash, and other salts, by making boreholes in mineral deposits. The process involves injecting solutions into ore that contains potash or other minerals underground. Mining companies are the original owners of the field. Currently, this process is majorly used for the extraction of potash from a depth exceeding 1,000 meters by pumping solution (weak HCL & sulfuric acid) through boreholes to create a brine solution, which is brought to the surface.

The evaporation process is then used to eliminate the water from the solution to obtain the required mineral. The U.S. is an essential market for solution mining in North America. According to the U.S. Environment Protection Agency (EPA), the country has 165 mining sites with approximately 18,500 class III injection wells for solution mining to extract salt, copper, sulfur, and uranium. The increasing demand for minerals and shifting focus on less carbon-intensive mining is expected to propel investments in solution mining technology over the coming years.

Furthermore, this technology minimizes engineering risk as compared to conventional mining owing to the location flexibility of the extraction wells, which are bound to one location for ore mining. The technology also provides the ability to move the operation to other locations for a much lower capital. Despite its benefits, this technology requires a significant amount of water and energy compared to conventional mines. This increases operational costs, which leads to high carbon pricing. In addition, pregnant solutions can be highly pyhto-toxic and corrosive. The solution can react with soil materials used in pond construction and can migrate to surrounding areas through a windblown spray, seepage, and overflow.

Product Insights

The potash segment dominated the industry in 2022 and accounted for the largest share of more than 62.25% of the overall revenue. Potash solution mining uses brine or water to dissolve the ore body, water is pumped to the surface, and potash is recovered through recrystallization. Potash is also mined through processes, such as conventional and cut and fill stope mining. Compared to conventional processes, solution mining for potash extraction is cost-effective and safe & secure for the workers. Lithium is substantially gaining traction and will register a lucrative CAGR, in terms of revenue, over the forecast period. Lithium Carbonate (Li₂CO₃) is the most stable inorganic compound and is used in forming other compounds, such as lithium hydroxide (LiOH) and even pure lithium.

It forms salts with carbonates and is used in the treatment of bipolar disorder and finds use in lithium-ion batteries. Magnesium is another key product segment. It can be extracted from a depth of 1,500 to 2,000 meters using solution mining. Underground caverns are formed in stacked layers of carnallite, bischofite, and halite. Extraction is implemented by the injection of fresh water in the ore deposit, which becomes saturated with MgCl₂. Magnesium deposits consisting of carnallite and bischofite layers are relatively rare. Examples of such deposits are the village of Veendam, in Northeastern Netherlands.

Regional Insights

North America accounted for the largest revenue share of over 51.0% in 2022. The region is one of the leading operators of the solution mining process in the world. The market growth in the region is expected to support the consumption of minerals in various end-use industries, such as automotive, energy, consumer goods, and agriculture. Europe is projected to grow at a steady CAGR from 2023 to 2030. The growth of technology in Europe can be attributed to the local government's emphasis on reducing carbon emissions and adopting sustainable mining processes.

This is anticipated to increase investments in solution mining activities in Europe in the coming years. In terms of revenue, Asia Pacific held a significant revenue share in 2022. The growing demand for metals from the region has fueled developments in the mining industry of Asia Pacific. However, the adoption of solution mining faces problems in the region owing to the lack of technological advancements. For instance, the Khorat Plateau in Northeastern Thailand is known to have active and promising regional potash deposits. However, this area is facing challenges in terms of the establishment and development of a proper potash industry owing to brine disposal solutions.

Key Companies & Market Share Insights

To remain in the competition, companies are entering into long-term supply contracts with end-users. For instance, in June 2022, Intrepid Potash entered a non-binding letter of intent with Corning Inc. for the supply of lithium and boron materials, and technical collaboration to develop advanced materials. Increasing demand for minerals has pushed key players in developing new fields. For instance, in June 2022, the Potash and Agri-Development Corp. of Manitoba (PADCOM) got approval from the Manitoba government (Canada) to start the extraction and production of potash in western Manitoba. The project is anticipated to produce up to 250,000 tons of potash per year and is projected to have a life of over 100 years. Some of the key players in the global solution mining market include:

• 5E Advanced Materials, Inc.

• Eti Soda Elektrik

• Intrepid Potash

• K+S Potash Canada GP

• Mosaic

• Nedmag B.V.

• Nutrien Ltd.

• Vale

Solution Mining Market Report Scope

Global Solution Mining Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global solution mining market report based on product and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • Lithium

  • Trona

  • Borates

  • Potash

  • Magnesium

  • Others

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • Turkey

    • Russia

  • Asia Pacific

    • China

    • India

  • Latin America

    • Mexico

  • Middle East & Africa

    • South Africa