The Global Lithium Mining Market was valued at US$ 3,271.4 Mn in 2020 and expected to reach US$ 4,655.8 Mn by 2027 and is expanding at a CAGR of 5.2% during the forecast period (2021-2027).
The global demand for lithium has seen a surge in the past few days. Emergence of electric vehicles and the possibility of ending of fossil fuel in the near future means an even more increased demand for lithium. The covid pandemic has forced companies to ask their employees to work from home, schools, colleges and other educational institutions are conducting online classes which is indirectly resulting in the usage of smartphones and laptops. This will also increase the demand for lithium-ion batteries.
Lithium is even used in medications for mental illnesses like Bipolar disorder, schizophrenia, etc and as you have seen the emergence of mental health issues amongst youth and the elderly alike has seen a steep increase in the recent years and more and more people are seeking out professional help so that will also increase the demand for lithium. The two major sources of lithium is brine and hard rock. A large part of the lithium is removed from brine and seawater has very high amounts of lithium carbonate. In the earth's crust, there are brines called continental brines subsurface brine are the main source for the production of lithium (lithium carbonate).
There are many drivers for global lithium market like increased demand for air conditioning. In many humid countries the demand for air conditioning is only increasing and with rapid increase in paying capacities of people it will only increase in the future. Glass is one of the most extensively used items in the world. Used for mirrors and mirror mounts for astronomical telescopes. Grease is very commonly used as a lubricant, it mainly protects metal from rust and reduce friction experienced by machines.
Lithium is also used for aluminium products, polymers, submarines, space vehicles and safety devices. Traditionally submarines have used lead acid batteries in war as well as peace times for their underwater missions and journey’s but lead acid batteries provide power for a very short time whereas the lithium ion batteries improve the underwater endurance of a submarine. They are also light weight and cost effective to maintain. Lithium is also an important element for the defence industry. Polymers are flexible, cost effective and can be transformed into thin films and it is used for carrier bags, shampoo bottles and food wrap.
The reason why Asia Pacific is seeing such a growth in lithium-ion batteries market is because of the increasing trend of electric vehicles and increased sale of consumer electronics. Even developing countries like India have welcomed companies like Tesla and are extensively using electric vehicles from other brands like Audi, Mercedes and BMW even hybrid vehicles are quite popular. In some parts the government has encouraged to use electric buses instead of regular buses. Many countries in Asia Pacific have a humid environment and hence the demand for air conditioning is also increasing.
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