Grand View Research: As demand for electric vehicles soars, the lithium market size may double by 2030

The lithium market is expected to double in size by 2030 as demand for electric vehicles accelerates, according to a new forecast from research firm Grand View Research .

Several traditional automakers say that the growth rate of electric vehicle sales is staggering. Some automakers are even having a hard time keeping up with consumer demand. During the second quarter earnings call, Ford CEO Jim Farley said, " We are selling electric vehicles almost as fast as we can make them. " The company plans to achieve an annual production of 600,000 electric vehicles by the end of next year and 2 million electric vehicles by 2026. Ford is not the only company planning to increase electric vehicle production. Almost all automakers have announced that they will (or plan to) achieve full electrification in the future.

As automakers scale up production of electric vehicles, demand for lithium is growing. Lithium is a key component of electric vehicle batteries, with lithium-ion batteries being the most popular choice. Lithium is key to meeting demand for electric vehicles, but supply is limited. The lithium market is worth about $ 7.5 billion this year, up nearly 10% from last year , according to a new report. Experts believe demand will only accelerate as automakers increase production of electric vehicles. With new incentives for sustainable energy (electric vehicles) in the United States, automakers are investing billions of dollars to go electric.

Image source: Tesla

Grand View Research said, " The rapid development of battery technology has boosted lithium demand, thereby driving market growth. Global automakers plan to invest more than $ 500 billion in electric vehicles and battery technology. As a result, lithium prices have risen more than 400% year-on-year this year , close to their historical highs. "

Grand View Research also noted that “ At the same time, new clean energy incentives are expected to drive the market further. The U.S. Senate just passed the largest climate bill in history, providing more than $ 400 billion in funding for clean energy development over the next 10 years. ”

Taking these factors into account, Grand View Research expects lithium market revenue to reach $ 18.99 billion by 2030 , up 153% from $ 7.49 billion this year .

Meanwhile, lithium mining in the United States is expected to resume. In January last year , the U.S. Bureau of Land Management gave the green light to the Thacker Pass Mine mining project of lithium mining company Lithium Nevada Corp. The Thacker Pass project is expected to become the largest lithium supply base in the United States, with a production capacity of about 80,000 tons by 2026 .

From: Gasgoo New Energy