Lithium Market To Reach $96.45 Billion By 2033 | CAGR: 14.5%

Lithium Market Growth & Trends

The global lithium market size is expected to reach USD 96.45 billion by 2033, registering a CAGR of 14.5% from 2026 to 2033, according to a new report by Grand View Research, Inc. As the world moves toward a more sustainable future, the demand for grid-scale storage solutions is also growing for the expansion of renewable energy sources and the adoption of electric vehicles (EVs). Therefore, the demand for lithium is expected to increase as a major component in lithium-ion batteries that are used in EVs, consumer goods, and grid storage.

For example, in April 2023, Kyon Energy, a developer, secured the largest approved battery energy storage system (BESS) in Europe for a 275 MWh project in Germany. The grid fee exemptions for energy storage have been extended until 2029. Kyon Energy has received approval for a BESS project of 137.5MW/275MWh. Its construction is expected to begin in 2024 and will be commissioned by the end of 2025.

Lithium recycling is a complex process; however, with the rising penetration of lithium-ion batteries, the demand for lithium may outpace supply. Therefore, researchers are focusing on the extraction and recycling of lithium through various new technologies. Lithium compounds are extracted from batteries as per individual methods and stages. The stages are divided into pre-treatment and extraction stages, while extraction is again categorized into hydrometallurgy, pyrometallurgy, and electrochemical extraction. Despite the growing emphasis and development of different recycling technologies, less than 1% of lithium is recycled currently.

Asia Pacific's dominance can be attributed to the increased battery production and growth in manufacturing among end-use industries, including electronics, glass, and ceramics. Due to the high concentration of automotive and consumer electronics manufacturers in the region, Asia Pacific is anticipated to witness high growth over the forecast period.

Long-term supply agreements in the lithium industry are becoming increasingly common as end-users seek to mitigate risks associated with supply chain disruptions, price volatility, and regulatory compliance while also supporting sustainability and innovation. For instance, in May 2023, Nemaska Lithium signed a long-term deal with Ford for the supply of lithium products, especially lithium hydroxide. The agreement will last for 11 years and will entail the delivery of up to 13,000 mt of lithium hydroxide per year.

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Lithium Market Report Highlights

• Carbonate segment held the revenue share of over 52.0% in 2025. Lithium Carbonate (Li2CO3) is the most stable inorganic compound used to form other compounds, such as LiOH and even pure metal.

• Automotive segment held the revenue share of over 41.0% in 2025. Automakers are accelerating the shift from internal combustion engines to battery-powered vehicles to meet fuel efficiency targets and reduce emissions.

• Asia Pacific held over 49% revenue share in 2025 of the global lithium market. The Asia Pacific market is primarily driven by its strategic dominance of the EV battery supply chain, which is underpinned by decisive government mandates.

Lithium Market Segmentation

Grand View Research has segmented the lithium market on the basis of on product, application, and region:

Lithium Product Outlook (Volume, Kilotons; Revenue, USD Million; 2021 - 2033)

• Carbonates

• Hydroxide

• Others

Lithium Application Outlook (Volume, Kilotons; Revenue, USD Million; 2021 - 2033)

• Automotive

• Consumer Electronics

• Grid Storage

• Glass & Ceramics

• Other

Lithium Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2021-2033)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

• Asia Pacific

  • China

  • India

  • Japan

  • South Korea

• Latin America

  • Argentina

  • Brazil

• Middle East & Africa

  • UAE

  • Saudi Arabia

List of Key Players in the Lithium Market

• Albemarle Corporation

• Sigma Lithium

• Ganfeng Lithium Group Co., Ltd

• Pilbara Minerals

• Lithium Americas Corp

• Tianqi Lithium Australia

• Mineral Resources

• Core Lithium

• Galaxy Resources Limited

• Lithium Corporation