Lithium Foil Market Expected to Reach $40.9 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Lithium Foil Market," The lithium foil market size was valued at $7.1 billion in 2021, and is estimated to reach $40.9 billion by 2031, growing at a CAGR of 19.2% from 2022 to 2031.

Lithium is a soft, silver metal, and is the lightest of all the metals on the earth. Lithium Foil is kept under oil to check corrosion as the metal reacts gradually in water and in the air where it ultimately forms a black coating of oxide. Lithium foil finds application in lithium-ion batteries along with aluminum and magnesium as lithium foil is used in the manufacturing of batteries.

The increase in demand for lithium foils for energy storage and batteries is a major factor influencing the market growth. Rapid technological advancements have led to an increase in demand for lithium foil, particularly for use in energy storage and battery applications. The market demand has also been boosted by advancements in the field of nuclear science.

However, the presence of alternatives such as aluminum foil and copper foil is projected to restrain the growth of the lithium foil market during the forecast period. The demand for lithium foil will expand due to the increasing acceptance of electrical vehicles and lithium batteries over the forecast period. These lithium foil market trends are expected to boost the market over the forecast period.

On the basis of purity level, the 99.5% and above segment accounted for 82.8% lithium foil market share in 2021 and is expected to maintain its dominance during the forecast period. This is owing to the increasing demand for pure lithium foil as it offers a number of benefits.

On the basis of thickness, the less than 0.02 mm segment dominated the global lithium foil market in terms of revenue, in 2021, and is expected to maintain its dominance during the forecast period. This is owing to the 0.2 mm lithium foils withstand very high temperatures, are extremely durable, and exhibit excellent electrical properties.

On the basis of end-use, the electrical and electronics segment dominated the global lithium foil market in terms of revenue, in 2021. This is owing to Li-ion batteries commonly used in small electronics (smartphones, tablets, drones) and electric vehicles.

On the basis of region, the Asia-Pacific region accounted for 40.2% revenue market share of the global lithium foil market in 2021 and is expected to maintain its dominance during the forecast period. This is owing to the increased growth of lithium’s deployment in electric vehicles.

The global Lithium foil market analysis is consolidated in nature with a few players, such as American Elements, Albemarle Corporation, BASF SE, China Energy Lithium Co., Ltd., Ganfeng Lithium Co., Ltd., Nanoshel LLC, Merck KGaA, The Honjo Chemical Corporation, Thermo Fisher Scientific, and UACJ Foil Corporation., which hold a significant share of the market. These players have been adopting various strategies to gain higher shares or to retain leading positions in the market.

IMPACT OF COVID-19 ON THE GLOBAL LITHIUM FOIL MARKET

• The outbreak of the COVID-19 pandemic has had an adverse impact on the global economy as governments globally were forced to implement lockdowns to prevent the spread of the virus. As a result, the operations of lithium foil were hampered.
• The onset of COVID-19 began in China and quickly spread to South Korea. Together, they produce the majority of the lithium-ion (Li-ion) batteries used in the world. Three-quarters of the global battery manufacturing capacity is located in China, which dominates the battery supply chain. This development caused a number of interruptions in the Li-ion battery supply chain, which also impacted the stationary energy storage and electric vehicle markets across the globe and impacted the lithium foil market growth.
• From the beginning of 2021, the supply chain of raw materials required for manufacturing batteries improved as well as electrical & electronics industry started their operation normally which increased the demand for lithium foil rapidly. Moreover, an increase in the implementation of lithium foils in batteries used in numerous end-use products such as electric vehicles, smart wearables, IoT devices, RFID tags, and others is predicted to stimulate the growth of the lithium foil industry during the forecast period. 

KEY FINDINGS OF THE STUDY

• On the basis of purity level, the 99.5% and above segment emerged as the global leader by acquiring more than 82.8% of the market share in 2021, and is anticipated to continue this trend during the forecast period.
• On the basis of thickness, the less than 0.02 mm segment accounted for 65.3% of the global market share in FY2021.
• On the basis of the end-use industry, the electrical and electronics segment accounted for 55.9% of the global market share in FY2021.
• On the basis of region, Asia-Pacific is the major consumer of Lithium Foil among other regions. It accounted for around 40.2% of the global market share in 2021.