Lithium Market to Reach 4.43 Million LCE Tons by 2031 with North America Emerging as the Fastest-Growing Region, Says Mordor Intelligence

HYDERABAD, India, May 14, 2026 /PRNewswire/ -- According to recent reports from Mordor Intelligence, the global lithium market is projected to grow from 1.84 million LCE tons in 2026 to 4.43 million LCE tons by 2031, registering a CAGR of 19.24% during the forecast period (2026–2031). Growth is driven by stricter EV mandates, expansion of utility-scale energy storage, and the accelerating deployment of direct lithium extraction (DLE) technologies. Battery pack costs fell below USD 110/kWh in 2025, narrowing the total cost of ownership gap with internal combustion engine vehicles and prompting automakers to secure long-term offtake agreements. Meanwhile, tier-2 Chinese refiners have expanded capacity faster than upstream supply, contributing to spot price pressures below USD 10,000 per ton and forcing higher-cost producers to scale back operations. The imbalance between record consumption and periodic oversupply is reshaping contracts: OEMs now seek floor-price protections, while miners pursue vertical integration to safeguard margins.

Lithium Market Drivers and Key Trends:

EV Adoption Trends and Battery Cost Shifts

Falling battery costs have tipped ownership economics toward electric cars, pushing regions to accelerate zero‑emission targets. China surged ahead with rapid EV uptake, Europe tightened fleet rules, and California advanced stricter sales mandates. Together, these moves compressed adoption into a sharper curve, forcing suppliers to keep pace.

Rising Grid Storage Requirements Worldwide

New rules in the U.S., Europe, and China now demand longer‑duration storage alongside renewable projects. This has doubled lithium intensity per gigawatt and created uneven procurement waves, challenging miners who operate on slower timelines.

Automaker Supply Deals and Partnerships

Major carmakers are securing lithium through direct investments and binding contracts. These agreements often include protective clauses, reshaping risk distribution and speeding up project development while reducing reliance on traditional producers.

Breakthroughs in Lithium Extraction Technology

Direct‑lithium‑extraction technologies are proving commercially viable, cutting lead times and improving recovery rates. By eliminating evaporation ponds, they align supply more closely with demand cycles and enable branding around sustainable 'green lithium.'

Himanshu Vasisht, Senior Research Manager, Mordor Intelligence, says, "Lithium market activity reflects evolving supply dynamics and steady demand across energy storage and mobility applications, with Mordor Intelligence applying a consistent framework to assess developments. Its reliance on cross-checked data and balanced evaluation supports a more dependable view than reports built on selective or uneven inputs."

Lithium Industry Segmentation:

By Compound

• Carbonate
• Chloride
• Hydroxide
• Other Compounds

By Application

• Battery
• Lubricants and Grease
• Air Treatment
• Pharmaceuticals
• Glass and Ceramics (Including Frits)
• Polymer
• Other Applications

By End-User Industry

• Automotive
• Industrial
• Consumer Electronics
• Energy Storage
• Medical
• Other End-user Industries

By Geography

Production and Reserve Analysis

• Australia
• Chile
• China
• Argentina
• Zimbabwe
• United States
• Other Regions

Consumption Analysis

• Asia-Pacific
• North America
• Europe
• South America
• Middle-East and Africa

For a full breakdown of lithium market size, segmentation data, and competitive intelligence, access the details of the Mordor Intelligence report: https://www.mordorintelligence.com/industry-reports/lithium-market?utm_source=prnewswire

Lithium Market Share by Region:

Asia-Pacific continues to lead lithium consumption due to strong battery manufacturing activity, especially in China, while Japan and South Korea remain focused on advanced battery technologies for global automakers. North America is witnessing rapid growth supported by government incentives and new domestic mining projects.

Europe is expanding its lithium ecosystem through gigafactory investments and sustainable sourcing initiatives. Meanwhile, South America is attracting fresh investments with supportive mining policies, and Africa is reshaping supply chains through stricter export regulations and growing processing activities.

Lithium Companies

• Albemarle Corporation
• Avalon Advanced Materials Inc.
• Ganfeng Lithium Group Co., Ltd
• Jiangxi Jiuling Lithium Co., Ltd.
• Lithium Americas Corp.
• Livium Ltd
• Mineral Resources
• Morella Corporation Limited
• Pilbara Minerals
• Rio Tinto
• Sichuan Yahua Industrial Group Co. Ltd
• SQM
• Tianqi Lithium Corporation
• Xinjiang Zhicun Lithium Industry Co.

Check out related reports published by Mordor Intelligence:

Proppants Market Size: The global proppants industry report analyzes the market by product type, including frac sand, resin-coated, and ceramic proppants, across Asia-Pacific, North America, Europe, South America, and the Middle East & Africa.

Hexion, U.S. Silica, CARBO Ceramics Inc, Covia Holdings LLC, Saint-Gobain are major companies operating in the market: https://www.mordorintelligence.com/industry-reports/proppants-market/companies?utm_source=prnewswire

Naphthalene Market Size: The report covers the naphthalene industry by source, application, and geography across Asia-Pacific, North America, Europe, South America, and the Middle East & Africa. It also provides five years of historical analysis and five-year market forecasts.

Rain Carbon Inc, JFE Chemical Corporation, Exxon Mobil Corporation, CARBOTECH, Epsilon Carbon Private Limited are major companies operating in the market: https://www.mordorintelligence.com/industry-reports/naphthalene-market/companies?utm_source=prnewswire

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SOURCE Mordor Intelligence Private Limited