According to MarketsandMarkets, the global lithium compounds market is projected to reach $5.87 Billion by 2020 while increasing at a CAGR of 13.22% between 2015 and 2020, with lithium-ion batteries being their largest application. Aside from numerous consumer and commercial products, i.e., cameras, smartphones, portables, etc., one of the greatest demands for Li-ion batteries comes from the electric vehicle makers. These include Tesla Inc., Honda Motor Co. Ltd., FMC Corporation, General Motors, and others.
MarketsandMarkets further explains that the major factors behind the growth of electric vehicle sales are government support, which comes in the form of grants, subsidies and tax rebates, additional factors include growing environmental consumer awareness, improvements to charging infrastructure, and increasing vehicle range. Furthermore, global electric vehicle sales are projected to grow at a CAGR of 32.57% from 1.50 Million units in 2018 to 10.79 Million units by 2025.
Market Examples
- Tesla Inc. broke barriers in developing high-performance automobiles that are the highest-selling pure electric vehicles-with long range and absolutely no tailpipe emissions. Reportedly, they are also the safest, highest-rated cars on the road in the world. As a result, the Tesla Gigafactory was born out of necessity and will supply enough batteries to support Tesla's projected vehicle demand of 500,000 cars per year by 2018, which may require today's entire worldwide supply of lithium-ion batteries.
- Honda Motor Co. Ltd. recently paired up with Jackery, maker of eco-friendly portable power solutions, to launch a new line of sustainable energy products at Outdoor Retailer's Summer Market. As you might’ve guessed, li-ion batteries will power the lot.
- FMC Corporation announced that it will rebrand its lithium materials business as Livent Corporation following the previously announced plan to separate FMC Lithium into a publicly traded company. Reportedly, Livent Corporation is one of only a small number of companies with the capability, reputation, and know-how to produce high-performance lithium compounds that are helping meet the growing demand for lithium.
- General Motors announced last year that the Buick LaCrosse added eAssist light electrification for the 2018 model. The combination of an electric motor with the company’s latest 2.5L four-cylinder engine delivers quiet and efficient performance. The eAssist system, when coupled with the four-cylinder engine, has a 19% increase in city fuel economy compared to the LaCrosse's advanced V-6 and leverages a compact lithium-ion battery pack to provide select benefits found in fully electric vehicles, such as torque-assisted launch, energy-saving regenerative braking, and smooth stop/start.
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