San Francisco, 31 March 2030: The Report Solution Mining Market Size, Share & Trends Analysis Report By Product (Magnesium, Lithium, Potash, Borates, Trona), By Region (North America, Europe, Asia Pacific, MEA), And Segment Forecasts, 2023 - 2030
The global solution mining market size is expected to reach USD 27.36 billion by 2030, according to a new report by Grand View Research, Inc, expanding at a CAGR of 4.0% during the forecast period. Lithium is of vital importance in today’s world where there is growing emphasis on the application of renewable energy. Lithium production via solution mining is anticipated to prove fruitful for market growth. Solution mining is also known as the In-situ Leaching (ISL) or In-situ Recovery (ISR) process. The minerals are recovered from the ore by leaching liquids through the ground. In this process, there is a very low surface disturbance, and no tailings or waste rock is generated. Lithium, trona, borate, potash, and magnesium are some of the products obtained via this technology.
These products are extensively used in various end-use industries. For instance, lithium is used in electric vehicles for manufacturing batteries. The potash product segment accounted for the largest revenue share in 2022. Potash can be mined with the solution mining process cost-effectively and securely. This method is hence conventionally popular and is expected to continue further during the forecast period. Lack of fertilizer and nutrients in the soil gradually leads to a decline in crop yields. To combat this and increase crop yield, the demand for potash is expanding, which is positively impacting the market growth. North America is one of the leading operators of solution mining in the world. Due to the high demand for boron products in the U.S., companies are investing in new mining products.
For instance, in June 2021, American Pacific Borates Ltd. decided to establish a specialty boron product, wherein the company is expected to start an integrated manufacturing facility, which includes a solution mine, solar-operated pond, boric acid plant, and specialty production. Various growth strategies, such as new product development and capacity expansion, by producer and buyer market players, are likely to benefit the industry growth. For instance, in April 2022, the Canadian government announced an investment of USD 2 billion to accelerate the production and processing of critical minerals for the Electric Vehicle (EV) battery supply chain. Thus, this investment ramps up the extraction and processing of critical minerals, such as lithium, nickel, and cobalt.
Solution mining is a process used to recover minerals, such as potash, copper, lithium, soda ash, and other salts, by making boreholes in mineral deposits. The process involves injecting solutions into ore that contains potash or other minerals underground. Mining companies are the original owners of the field. Currently, this process is majorly used for the extraction of potash from a depth exceeding 1,000 meters by pumping solution (weak HCL & sulfuric acid) through boreholes to create a brine solution, which is brought to the surface.
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The evaporation process is then used to eliminate the water from the solution to obtain the required mineral. The U.S. is an essential market for solution mining in North America. According to the U.S. Environment Protection Agency (EPA), the country has 165 mining sites with approximately 18,500 class III injection wells for solution mining to extract salt, copper, sulfur, and uranium. The increasing demand for minerals and shifting focus on less carbon-intensive mining is expected to propel investments in solution mining technology over the coming years.
Furthermore, this technology minimizes engineering risk as compared to conventional mining owing to the location flexibility of the extraction wells, which are bound to one location for ore mining. The technology also provides the ability to move the operation to other locations for a much lower capital. Despite its benefits, this technology requires a significant amount of water and energy compared to conventional mines. This increases operational costs, which leads to high carbon pricing. In addition, pregnant solutions can be highly pyhto-toxic and corrosive. The solution can react with soil materials used in pond construction and can migrate to surrounding areas through a windblown spray, seepage, and overflow.
To remain in the competition, companies are entering into long-term supply contracts with end-users. For instance, in June 2022, Intrepid Potash entered a non-binding letter of intent with Corning Inc. for the supply of lithium and boron materials, and technical collaboration to develop advanced materials. Increasing demand for minerals has pushed key players in developing new fields. For instance, in June 2022, the Potash and Agri-Development Corp. of Manitoba (PADCOM) got approval from the Manitoba government (Canada) to start the extraction and production of potash in western Manitoba. The project is anticipated to produce up to 250,000 tons of potash per year and is projected to have a life of over 100 years.
