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| Lithium Compound |
The
lithium compound market comprises compounds containing lithium such as lithium
carbonate, lithium hydroxide, lithium chloride, lithium fluoride, lithium
bromide, and lithium iodide that find extensive applications in various end-use
industries. Lithium carbonate and lithium hydroxide primarily serve as raw
materials for the manufacturing of lithium-ion batteries.
The
global lithium compound market is estimated to be valued at US$ 7.73 BN in 2024 and is expected to
exhibit a CAGR of 13% over the
forecast period 2024 to 2031.
Lithium compounds are used across various applications like batteries, glass
& ceramics, medical, lubricants, air treatment, continuous casting,
aluminum production, and polymers. However, lithium-ion batteries remain the
key end-use sector, accounting for over 50% of the global
Lithium
Compound Market Analysis consumption. Rising demand for consumer
electronics and electric vehicles is propelling the demand for lithium-ion
batteries, thereby driving the lithium compound market. Lithium-ion batteries
provide high energy density and are rechargeable multiple times, making them
suitable for various applications. Additionally, lithium carbonate is used in
air treatment, medical, and other industrial applications.
Key Takeaways
Key players operating in the lithium compound market are Lithium Americas Corp,
Albemarle Corporation, Neometals Ltd, FMC Corporation, Sociedad Química y
Minera de Chile, Livent Corporation, Tianqi Lithium Industries Inc., Nemaska
Lithium Inc., Neo Lithium Corporation, Millennial Lithium Corporation, Galaxy
Resources Limited, PACIFIC ORGANOS PVT LTD. , Satyam Pharma-Chem Pvt. Ltd. ,
Otto Chemie Pvt. Ltd., Sontara Organo Industries, Mody Chemi Pharma Ltd, Vizag
chemical, Ennore India Chemicals, and Zama chemical.
The lithium compound market offers growth opportunities owing to rising
investments and expansion projects of key players to meet the increasing demand
for lithium compounds. For instance, in 2022, Albemarle Corp commenced the
commissioning activities of its 50,000 MT lithium carbonate expansion project
in Nevada, USA. Argentinian miner Livent also announced plans to invest $215 million
to boost lithium production capacity by 50% by 2025.
Key players are focused on enhancing their production capacities through
expansions, acquisitions, and new projects across regions, especially South
America, North America, and Australia, to cater to the growing global demand
for lithium compounds. The Asia Pacific region dominated the lithium compound
market in 2021 and is projected to continue its lead over the forecast period,
backed by increasing lithium-ion battery demand from the electric vehicle and
consumer electronics industries in China, Japan, and South Korea.
Market Drivers
Rising demand for lithium-ion batteries from the automotive industry: Growth in
the electric vehicle market is driving lithium-ion battery demand. According to
the International Energy Agency (IEA), global EV sales are expected to increase
to 50% of new car sales by 2040, thereby boosting lithium compound consumption
over the next two decades.
Emerging lithium applications: Apart from batteries, lithium compounds find
usage in various applications like glass & ceramics, lubricants, medical,
air treatment, and continuous casting, providing opportunities for market
growth.
Market Restrain
Volatility in lithium prices: Uncertain supply, rising raw material costs, and
demand fluctuations result in price volatility of lithium compounds in the
global market, restricting widespread adoption.
Segment Analysis
The lithium compound market is dominated by lithium carbonate sub-segment owing
to increasing use of lithium carbonate in batteries, as it is considered a
primary raw material in cathodes for lithium-ion batteries. Lithium carbonate
accounts for over 45% of the total lithium compound consumption. It finds
widespread application in energy storage systems and rechargeable batteries.
Rising adoption of electric vehicles and increasing penetration of consumer
electronics has amplified the demand for lithium carbonate over the years.
Global Analysis
North America holds the largest share in the lithium compound market due to
high demand from end-use industries and presence of leading players in
countries like the US. The regional market is expected to witness a CAGR of
16.5% during the forecast period. Asia Pacific displays the fastest growth rate
owing to rapid industrialization, growing electronics industry, and rising
electric vehicle sales in China, South Korea, India. China dominates Asia
Pacific lithium compound consumption on account of large lithium reserves and
massive investments in EV batteries manufacturing. Initiatives to promote clean
mobility solutions are augmenting the usage of lithium compounds in batteries
across Europe.
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Compound Market
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