Lithium Hydroxide Market – By Purity, Form, Application, End Use - Global Forecast, 2025 – 2034

Lithium Hydroxide Market Size

The global lithium hydroxide market was valued at USD 25.2 billion in 2024 and is estimated to grow at a CAGR of over 15.4% from 2025 to 2034.
 

The market for lithium hydroxide has expanded tremendously over the past decade owing to the implementation of renewable energy systems propelled by the rapid development of the electric vehicle industry. As the main component of high nickel lithium-ion batteries, lithium hydroxide plays a critical role in their production. These batteries outperform traditional ones not only in energy density, but also in lifespan. The demand for energy-dense batteries increases the preference for lithium hydroxide over carbonate compounds in several applications.
 

There is a notable shift in recent business activity towards integration within the lithium supply chain. For example, recently, Tesla and BYD, two of the biggest electric vehicle manufacturers, began self-mining and refining lithium. The aim of this strategic posture is to guarantee the uninterrupted availability of raw materials in place of outsourcing from third-party vendors. This self-sufficiency direction concerning geopolitics and an increase in resources nationalism suggests a self-sufficient trend in lithium production is impacting the lithium hydroxide market growth.
 

For instance, the figure of new electric car registrations in China grew to 8.1 million in 2023, marking a 35% growth as compared to 2022. The boom in sales of electric cars was the single reason for the overall market growth of cars which shrank by 8% for conventional cars while growing 5% in total, which means that electric cars are still performing well as the market matures. 2023 was the first year where China's New Energy Vehicle (NEV) industry operated without the backing of national subsidies for EV purchases which have helped expand the market for over a decade.
 

The extraction and refinement of lithium is changing with new advancements in technology. For example, the development of direct lithium extraction (DLE) technology is notable since it has the potential to increase yields, reduce environmental impacts, and cut costs. Industry leaders like Livent Corporation and Albemarle are already investing in R&D considering how these innovations would changes market prospects in the future.
 

The field of lithium hydroxide is now focusing on sustainability because there are more consumers and investors pushing companies to be more environmentally friendly. Businesses are changing by adopting green mining methods, using renewable resources for refining, and conserving water to reduce their environmental impacts.
 

Lithium Hydroxide Market Trends

• Rising demand from the automotive industry: Market forces have changed signi?cantly in the latter part of the decade. The demand for lithium hydroxide, which was previously foreshadowed by the consumer electronics market, is now largely dictated by the automotive industry. Government subsidies in favor of EVs, coupled with harsh policies on carbon emissions, have fueled the global slight towards electric mobility. As an illustration, the European Union earmarked EUR 20 billion within its “Fit for 55” package for the adoption of EVs and the production of batteries within the bloc. The same goes for the United States, which enacted the IRA of 2022 which spends USD 369 billion over the coming decade in clean energy funding, covering subsidized EVs and battery production within the US. While Europe and North America are already switching to EVs, they are also scaling up the needed infrastructure and battery manufacturing which fuels the lithium hydroxide market growth even more.
   
• Worldwide automotive production in 2023 is expected to reach nearly 76 million units, an increase of 10.2% from last year. This increase was concentrated in production trends between regions around the world. European Union production of cars also grew vigorously and reached almost 15 million units, which was an impressive increase of 12.6% over the previous year. This increase was mainly due to the easier comparison base the year before 2022. In North America, production rose by 12.4% compared to 2022, achieving a total of 11.7 million units in 2022. Similar was the case with the US, which increased by 8.5% and constructed more than 7.6 million units.
   
• Increasing investments in lithium mining & refining: An investment boom in the lithium mining and refining segments around the world is being caused by the exceptional increase in demand for lithium hydroxide which needs being shocked by the growth of electric vehicles (EV). Governments, private investors, and mining giants are committing significant sums for the expansion of lithium extraction and processing for the battery industry to ensure a reliable supply chain. Nations like Australia, Chile, Argentina, and China which already have lithium abundant reserves are increasing the size of their current mines and developing new ones extensively to satisfy the growing demand across the global. Furthermore, both North America and Europe are increasing investment in local lithium mining and refining to reduce the reliance on Chinese supply chains.
   
• For example, in the United States, the government funds under the Inflation Reduction Act (IRA) to improve the ecosystem for battery manufacturing by enhancing lithium mining and refining in the country. In the same manner, European countries are scaling up efforts to set lithium hydroxide refineries to aid the shift towards sustainable energy systems in the continent. Nonetheless, despite the increased spending on lithium mining projects, the excessive environmental constraints, the time gives to permits, and the changes in the political risks still affect the timing of the projects and their ability to grow production. While the market continues to change, investment in sustainable technologies for extraction, more efficient refining processes, and diversification of the supply chain will be increasingly important for stabilizing the availability and the pricing of lithium worldwide.
   

Lithium Hydroxide Market Analysis

Based on purity, the market is segmented into 55%, 99%, 99.30%, and others. The global lithium hydroxide industry accounted USD 25.2 billion revenue in 2024. 99% purity segment dominated in 2024 with a revenue of USD 11.3 billion.
 

• Certain applications such as specialty greases and lubricants with stricter operational boundaries are increasingly adopting the 99% purity type. On the contrary, the battery industry is progressively shifting toward the 99.30% types due to the high-purity lithium hydroxide's critical necessity for producing high-nickel cathode materials.
   
• Due to its high effectiveness in the nickel-rich cathodes, lithium hydroxide is increasingly preferred by battery manufacturers since it enhances the performance and the lifecycle of the battery.
   

Based on form, the lithium hydroxide market is segmented into anhydrous and monohydrate. The monohydrate segment held USD 15.7 billion in 2024. The economical and simple supervision of monohydrate lithium hydroxide is why multiple manufacturers use it. Its usage is necessary in the development of cathode materials in lithium-ion batteries – in this field, both quality and cost-effectiveness are always critical. The growing popularity of electric vehicles and energy storage systems is sharply increasing the consumption of monohydrate lithium hydroxide.
 

The lithium hydroxide market is divided into batteries, greases and lubricants, glass and ceramics, air conditioning and humidification systems, chemical synthesis, carbon dioxide absorption, and others. Batteries segment accounted USD 15.4 billion in 2024 and is expected to grow at a 16.4% of CAGR during the forecast period. Batteries segment held 60.9% of share in 2024.
 

• As the electric vehicle (EV) and renewable energy sectors continue to grow, the demand for high-purity lithium hydroxide used in battery production is expected to increase tremendously. Thus, the electric vehicles segment dominates the market, greatly due to its role in high-capacity batteries.
   

Automotive segment generated USD 12.7 billion revenue in 2024. The electric vehicle boom has propelled the automotive industry to become the largest consumer of lithium hydroxide. The car manufacturers are now utilizing high-nickel lithium-ion batteries to fuel the performance and range of the vehicles which in turn is increasing the demand supply for high-purity lithium hydroxide.
 

The lithium hydroxide market is dominated by U.S., which was valued at USD 5.4 billion of total revenue in 2024.
 

• The lithium hydroxide industry in the U.S, especially lithium hydroxide, has experienced growth from increasing investments into EV infrastructure and battery production. As a result of the growing demand for EVs, multiple gigafactories have been built in the US, positioning the country as a major player in the global lithium-ion battery supply chain. To decentralize battery production, major automakers in the US are doubling down on their efforts which, in turn, increases the need for high-purity lithium hydroxide. This growth is also being driven by government policies and incentives aimed at clean energy and sustainable transportation.
   

Lithium Hydroxide Market Share

Top 5 companies include American Elements, Glentham Life Sciences, Loba Chemie, Merck, and MP Biomedicals.
 

In the highly competitive global market of lithium hydroxide, industry leaders are expanding production capacity, securing sources of raw materials, and investing heavily into new processing technology. To strengthen marketing position to meet the ever-increasing demand for high purity lithium hydroxide, firms are adopting vertical integration, forming alliances, and joint venture strategies.
 

Of the strongest competitors in the sector, American Elements is distinctively differentiated with their balanced portfolio of products with strong R&D output, as the company specializes in the ultra-pure lithium hydroxide supply for niche applications in advanced battery materials.
 

The lithium hydroxide market is extremely competitive, especially in product refinement, innovation, and supply chain management. This creates opportunities for increased market share. According to industry experts, American Elements, Merck, and Thermo Fisher are dominant players in supplying high-purity lithium hydroxide for batteries, pharmaceuticals, and advanced materials research. As an example, American Elements is at the forefront in providing high-performance materials that aid energy to aerospace industries. Although Merck and Thermo Fisher Scientific cater to other end-user segments like pharmaceuticals and life sciences, their well-established R&D and strong global distribution network make them leaders of specialty chemicals.
 

Glentham Life Sciences, Loba Chemie, MP Biomedicals, and Sisco Research Laboratories are other important participants of the market that concentrate on the production of superlative grade lithium hydroxide for laboratories and industrial purposes. These organizations fetch the utmost focus of research institutions and specialized manufacturers of chemicals due to their strong emphasis accuracy of chemical, its constancy, and international quality control measures Nanografi and Stanford Advanced Materials take advantage of the increasing lithium-ion battery technology market by integrating advanced materials into the batteries to improve their performance and durability. As an example, American Elements is at the forefront in providing high-performance materials that aid energy to aerospace industries.
 

Although Merck and Thermo Fisher Scientific cater to other end-user segments like pharmaceuticals and life sciences, their well-established R&D and strong global distribution network make them leaders of specialty chemicals. Companies that take the initiative to build vertical linkages, develop refining facilities, and adopt environmentally friendly methods of mining are bound to be successful in an environment of increasing competition for high-purity lithium hydroxide These trends are augmented by attempts to diversify geographically with market participants beyond the traditional insulin regions of lithium production to build supply chain and mitigate the risks related to the changeability of incoming resources.
 

Lithium Hydroxide Market Companies

Some of the eminent market participants operating in the lithium hydroxide industry include:

• American Elements
• Glentham Life Sciences
• Loba Chemie
• Merck
• MP Biomedicals
• Nanografi 
• Sisco Research Laboratories
• Stanford Advanced Materials
• Thermo Fisher Scientific
• Vishnupriya Chemicals
   

Lithium Hydroxide Industry News

• In June 2024, Glentham Life Sciences, a chemical supplier from Corsham in Wiltshire, was awarded by Lombard Asset Finance. This funding helped the company to install solar panels in its warehouse, lowering the carbon emissions of the company and moving towards its target of net-zero operational emissions.

• In 2024, Loba Chemie, which has its headquarters in Mumbai and specializes in manufacturing chemical products for laboratory substances, declared its intention to penetrate deeper into the far East market. The company viewed the area as relatively under-developed and sought to create more than 10 stockholding centers that had unrestrained and immediate supply of the products.

• In February 2023, American Elements increased their supplier network and production levels to meet the growing international demand of premium materials used in battery production. This is especially true for lithium, which is vital for electric cars, as lithium hydroxide is required in large quantities to produce lithium-ion batteries.

• In March 2023, Thermo Fisher contracted with several lithium producers with the goal of improving the quality assurance processes of lithium hydroxide. This effort was aimed at assuring battery manufacturers across the globe of a consistent supply of high purity lithium hydroxide.
   

The lithium hydroxide market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in (USD Billion) & Volume in (Kilo Tons) from 2021 – 2034 for the following segments:

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Market, By Purity

• 55%
• 99%
• 99.30%
• Others

Market, By Form

• Anhydrous
• Monohydrate

Market, By Application

• Batteries
  • Lithium-ion batteries
  • Energy storage systems (ESS)
• Greases and lubricants
• Glass and ceramics
• Air conditioning and humidification systems
• Chemical synthesis
• Carbon dioxide absorption
• Others

  Market, By End Use

• Automotive
  • Electric vehicles (EVs)
  • Hybrid electric vehicles (HEVs)
• Electronics and energy storage
• Industrial manufacturing
• Aerospace
• Chemical
• Others

The above information is provided for the following regions and countries:

• North America 
  • U.S.
  • Canada
• Europe 
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Netherlands
• Asia Pacific 
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America 
  • Brazil
  • Mexico
  • Argentina
• Middle East and Africa 
  • Saudi Arabia
  • South Africa
  • UAE