Lithium Market Report 2026

The lithium market size has grown rapidly in recent years. It will grow from $6.89 billion in 2025 to $7.61 billion in 2026 at a compound annual growth rate (CAGR) of 10.6%. The growth in the historic period can be attributed to expansion of portable electronics manufacturing, rising use of lithium in glass and ceramics, growth in lubricant applications, development of lithium brine resources, advancements in chemical processing techniques.

The lithium market size is expected to see rapid growth in the next few years. It will grow to $11.36 billion in 2030 at a compound annual growth rate (CAGR) of 10.5%. The growth in the forecast period can be attributed to increasing demand from electric vehicle batteries, rising grid energy storage deployments, expansion of renewable energy integration, growing investments in sustainable mining technologies, increasing adoption of lithium recycling. Major trends in the forecast period include increasing expansion of lithium brine extraction projects, rising adoption of direct lithium extraction techniques, growing focus on sustainable lithium mining, expansion of battery-grade lithium production, enhanced process automation in lithium refining.

The rising adoption of smartphones is expected to drive the growth of the lithium market in the coming years. A smartphone is a mobile phone equipped with a built-in computer and advanced functionalities not found in earlier phones, including an operating system, internet browsing, and the ability to run software applications. Smartphones play a crucial role in the lithium market by increasing demand for lithium-ion batteries, which are essential components of these devices, thereby supporting the expansion of the lithium industry. For example, in February 2023, Uswitch Limited, a UK-based financial conduct authority, reported that mobile connections in the UK reached 71.8 million, reflecting a 3.8% increase from the previous year, or around 2.6 million additional connections. Moreover, the UK population is projected to grow to 68.3 million by 2025, with an estimated 95% of the population, or about 65 million people, expected to own a smartphone. Consequently, the growing adoption of smartphones is fueling the growth of the lithium market.

The growing demand for electric vehicles is expected to drive the expansion of the lithium market in the coming years. An electric vehicle is an automobile powered by electricity, typically using one or more electric motors, rather than an internal combustion engine that depends on gasoline or diesel. Lithium is a critical component in electric vehicles due to its use in lithium-ion batteries, which are essential for storing the energy required to operate EVs and support the transition toward sustainable transportation. For example, in October 2023, the European Environment Agency, a Denmark-based government body, reported that registrations of battery electric cars in Europe reached 1,126,682 in 2023, representing a 28.35% increase from 878,092 registrations in 2022. In addition, non-plug-in hybrid electric vehicles accounted for 19% of new registrations, up from 7% in 2022. Consequently, the growth of electric vehicles is fueling the expansion of the lithium market.

Major companies operating in the lithium market are increasingly focusing on launching innovative solutions, such as establishing lithium hydroxide production facilities, to strengthen lithium refining capabilities and downstream battery material supply. A lithium hydroxide production facility is a specialized industrial plant designed to extract, process, and convert lithium-bearing raw materials into lithium hydroxide using chemical and electrochemical processes. For example, in October 2025, Century Lithium Corp., a Vancouver-based advanced lithium developer working on its Angel Island project in Nevada, successfully produced high-purity lithium hydroxide (+99.5% LiOH) at its Amargosa Valley Lithium Extraction Facility, also known as the Demonstration Plant. This achievement marked the first instance of lithium hydroxide being produced from lithium carbonate derived from claystone ore. By utilizing the company’s patent-pending alkaline leach and Direct Lithium Extraction (DLE) process, followed by conventional liming conversion with calcium hydroxide, the project demonstrated the potential to supply both lithium carbonate and lithium hydroxide for domestic battery supply chains, supporting growing energy storage and electric vehicle demand.

Major companies operating in the lithium market are Albemarle Corporation, Sociedad Química y Minera, FMC Corporation, Sichuan Tianqi Lithium Industries Inc., Tianqi Lithium Corporation, Livent Corporation, Allkem Limited, Jiangsu Ronghui General Lithium Industry Co. Ltd., Avalon Advanced Materials Inc., Lithium Americas Corp., Ganfeng Lithium Co. Ltd., Mineral Resources Limited, Neometals Ltd., Pilbara Minerals Limited, Altura Mining Limited, Bacanora Lithium Plc, Critical Elements Lithium Corporation, International Lithium Corp., Lithium Australia NL, Lithium Power International Limited, Nemaska Lithium Inc., North American Lithium Inc., Piedmont Lithium Limited, Standard Lithium Ltd., Sayona Mining Limited, Wealth Minerals Ltd.

South America was the largest region in the lithium market in 2025. The regions covered in the lithium market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the lithium market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The Lithium market includes revenues earned by entities by produce glass, aluminum products, and batteries. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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