Lithium hydroxide is a white crystalline powder that is highly soluble in water. It is commonly used in the manufacturing of lithium-ion batteries which power various electronic devices and electric vehicles. Lithium hydroxide offers advantages such as higher energy density and lighter weight compared to traditional lead-acid batteries. With the growing demand for EVs and electrical energy storage worldwide, the adoption of lithium-ion batteries is increasing rapidly which is fueling the demand for lithium hydroxide.

The global lithium hydroxide market is estimated to be valued at US$ 0.61 Bn in 2023 and is expected to exhibit a CAGR of 7.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The primary driver for the increased demand of lithium hydroxide is the rising adoption of lithium-ion batteries in the energy storage sector. Lithium hydroxide is a key raw material used in the manufacturing of cathode materials for lithium-ion batteries. With growing focus on clean and renewable energy sources, the utility sector is increasingly adopting large-scale battery energy storage systems (BESS) to store electricity from solar and wind power plants. Furthermore, the surging sales of plug-in electric vehicles worldwide have also boosted the consumption of lithium hydroxide significantly. Major automakers are making huge investments in developing affordable EVs, which is expected to continue the high growth momentum of this market over the coming years.

Segment Analysis
The global lithium hydroxide market is dominated by the battery-grade lithium hydroxide segment. It accounts for over 60% of the total market share owing to widespread use of lithium hydroxide in lithium-ion batteries used in electric vehicles and energy storage systems. With rapid growth of EVs globally due to favorable government policies promoting clean energy, demand for battery-grade lithium hydroxide is growing at a fast pace.

Key Takeaways
The Global Lithium Hydroxide Market Size is expected to witness high growth over the forecast period from 2023 to 2030.

Regional analysis: Asia Pacific currently dominates the global lithium hydroxide market and is expected to continue its domination over the forecast period. Counties like China, Japan, and South Korea are major manufacturing hubs for lithium-ion batteries. Availability of raw materials and presence of large consumer base for EVs and energy storage systems in the region are driving the lithium hydroxide market in Asia Pacific.

Key players operating in the lithium hydroxide market are Halliburton Co., Weatherford International Ltd., National Oilwell Varco, Inc., Xi'an Kosun Machinery Co., Ltd., Tervita Corporation, TWMA Ltd., Step Oiltools, Soli-Bond, Inc. Specialty Drilling Fluids Ltd., Soiltech, Scomi Group BHD, Secure Energy Services, Inc., Schlumberger Ltd., Nuverra Environmental Solutions, Ridgeline Canada, Inc., Newalta, Hebei Gn, Solids Control Co. Ltd., Imdex Limited, Baker Hughes, Inc., Derrick Equipment Company, and Augean PLC.

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