How big is the lithium hydroxide market | Global Analysis & Key Drivers 2025

What is the size of Lithium Hydroxide Market?

The market is expanding rapidly due to rising demand for high-nickel cathode chemistries in EV batteries, increasing conversion capacity, and supportive policies for critical minerals.

Key Growth Drivers of the Lithium Hydroxide Market

• Increase in EV boosting need of high-nickel NMC and NCMA cathodes
• Increase in conversion facilities to refine battery-grade hydroxide out of spodumene concentrate
• Government policy incentives on local processing and localization of supply chains
• Innovation that increases the efficiency of conversions and makes products and purity better
• An increasing use of low-carbon manufacturing that runs on renewable sources of energy

Lithium Hydroxide Market Trends

Lithium hydroxide market is witnessing trends like a strong shift toward high-nickel cathodes requiring hydroxide over carbonate, vertical integration of supply chains by automakers and battery manufacturers, and greater price linkage to lithium indices. More efficiently scaled direct lithium extraction and refining technologies are permitting spodumene and brine-to-hydroxide processes. The increase in sustainability actions is at a fever pitch with manufacturers working on cutting carbon emissions, boosting traceability, and developing better water stewardship throughout the operations.

Emerging Developments in the Lithium Hydroxide Market

Lithium hydroxide market is experiencing developments such as commissioning of new refineries in North America, Europe, and Asia to reduce reliance on single-region supply, investment in integrated mining-to-refining projects, and the commercialization of alternative refining processes with lower energy intensity. Long-term supply contracts between miners, refiners, and OEMs are becoming more prevalent, alongside increased R&D into recycling and black-mass processing to recover hydroxide directly. Producers are also investing in flexible conversion capacity to switch between carbonate and hydroxide in response to cathode demand shifts.

List of Leading Companies in the Lithium Hydroxide Market

Below is a comprehensive list of the leading market players driving growth in this sector:

1. Albemarle Corporation

Albemarle produces battery-grade lithium hydroxide for electric vehicles, energy storage, and industrial applications, leveraging global mining operations and advanced refining technologies for consistent quality supply.

2. Ganfeng Lithium Co., Ltd.

Ganfeng Lithium manufactures high-purity lithium hydroxide to support the global electric vehicle industry, with integrated operations in mining, refining, and lithium battery recycling.

3. Tianqi Lithium Corporation

Tianqi Lithium supplies battery-grade lithium hydroxide for lithium-ion cathode production, energy storage systems, and specialty chemical uses across global electric mobility markets.

4. SQM (Sociedad Química y Minera de Chile S.A.)

SQM produces lithium hydroxide from brine resources, catering to electric vehicle batteries, renewable energy systems, and high-performance industrial chemical applications worldwide.

5. Livent Corporation

Livent delivers high-performance lithium hydroxide products for cathode manufacturing in electric vehicle batteries, energy storage systems, and specialty industrial applications globally.

6. Allkem Limited

Allkem produces lithium hydroxide from sustainable brine operations, supporting global EV supply chains and advanced battery material manufacturing for renewable energy systems.

7. Mineral Resources Limited

Mineral Resources engages in lithium mining and refining, producing battery-grade lithium hydroxide for electric vehicle batteries, energy storage, and specialty industrial uses.

8. Nemaska Lithium Inc.

Nemaska Lithium develops high-purity lithium hydroxide from spodumene ore, targeting the electric mobility, renewable energy, and specialty chemical manufacturing sectors globally.

9. Piedmont Lithium Inc.

Piedmont Lithium plans to supply battery-grade lithium hydroxide for North America’s electric vehicle and energy storage industries through sustainable mining and refining operations.

10. Sigma Lithium Corporation

Sigma Lithium produces environmentally responsible lithium hydroxide from Brazilian hard rock deposits, serving the global electric mobility and renewable power storage industries.

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