Lithium market expected to grow by 20% a year until 2030

Demand for lithium, which has seen strong growth in recent years, will see an annual increase of around 20% globally by 2030, when it should reach 3.06 million tonnes, more than half of which will be lithium hydroxide (1.54 million tonnes).

This projection, expressed by McKinsey, is directly related to the sharp global increase that is expected in demand for lithium-ion batteries in the coming years.

From 700 GWh in 2022, demand is likely to grow to 4,700 GWh in 2030, at a rate of around 27% per year, reaching a global market value of more than USD 400 billion. Batteries for electric mobility (EVs) are expected to take the lion's share, of about 4,300 GWh.

Among other reasons, including regional measures in major markets such as North America and India, this projected increase is largely due to the regulatory shift towards sustainability, which includes new net-zero targets and guidelines, and the end of production of internal combustion engine vehicles in 2035 in the EU, along with the emission reduction targets imposed by many of the major car manufacturers. On the consumer side, the shift to electric mobility is increasingly a reality, with expected rates of 90% in some markets by 2030.