PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1462923
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1462923
Lithium Compound Market size was valued at USD 8,922.23 Million in 2023, expanding at a CAGR of 15.8% from 2024 to 2032.
Lithium compounds encompass a group of chemical substances containing lithium, an exceptionally reactive alkali metal. These compounds find diverse End Uses across multiple industries, with their most prominent usage seen in lithium-ion batteries, which power an extensive array of electronic devices, electric vehicles, and renewable energy storage systems. Furthermore, lithium compounds play pivotal roles in pharmaceuticals, ceramics, lubricants, and serve as catalysts in chemical reactions, underscoring their significance in modern technology and industrial operations.
Lithium Compound Market- Market Dynamics
Increasing demand across a wide spectrum of devices to propel market demand
Lithium compounds have found extensive application in lithium-ion rechargeable battery technology, contributing significantly to energy preservation and efficiency. These batteries are utilized across a wide spectrum of devices, including mobile phones, cameras, laptop computers, power equipment, and vehicles. In the automotive sector, lithium-ion batteries play a crucial role in both combustion and electric vehicles, owing to their numerous advantageous characteristics such as high energy density, minimal self-discharge rate, prolonged life cycle, cost-effective maintenance, rapid charging capabilities, and lightweight construction. Consequently, lithium-ion batteries are favored in the automotive industry. Additionally, there remains a notable demand for Ni-Cd batteries, particularly in hybrid electric vehicles. Regions like India, Southeast Asia, and South Korea have witnessed substantial growth in the sales and demand for hybrid vehicles compared to previous years. According to data from the Bureau of Economic Analysis (BEA), the value added by manufacturing electrical appliances, equipment, and components in the United States surged to approximately USD 73.8 billion in the third quarter of 2022, marking an approximate 8% increase from the corresponding period of the previous year. The cumulative value added in the initial three quarters reached close to USD 220 billion. Moreover, the gross output of computer and electronic products manufacturing in the United States amounted to approximately USD 1,300 billion in the first three quarters of 2022, showcasing a 7% growth compared to the corresponding period in 2021, which stood at USD 1,200 billion.
Lithium Compound Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 15.8% over the forecast period (2024-2032)
Based on Derivative segmentation, lithium carbonate was predicted to show maximum market share in the year 2023
Based on Application segmentation, Li-ion batteries was the leading type in 2023
On the basis of region, North America was the leading revenue generator in 2023
The Global Lithium Compound Market is segmented on the basis of Derivative, Application, End Use, and Region.
The market is divided into seven categories based on Derivative: Lithium Carbonate, Lithium Hydroxide, Lithium Concentrate, Lithium Metal, Butyl Lithium, and Lithium Chloride & Others. In 2023, the lithium carbonate segment emerged as the dominant player in the lithium compounds market, based on derivative analysis. Lithium carbonate, a vital lithium salt of carbonate, finds extensive use in the processing of metal oxides. Serving as the initial lithium compound extracted from brines and serving as a foundational component in the production chain, lithium carbonate acts as a precursor for various other lithium derivatives. Its applications span across diverse sectors including glass & ceramics, aluminum production, pharmaceuticals, and Li-ion batteries. Moreover, it plays a crucial role in reducing the melting point of silica used in ovenware glass and enhancing color and shine in ceramics. The escalating demand for lithium carbonate from the Li-ion battery industry is anticipated to fuel its market growth throughout the forecast period.
The market is divided into six categories based on Application: Li-ion Batteries, Glass & Ceramics, Medical, Lubricants, Metallurgy, and Polymers. In terms of application, the Li-ion batteries segment captured the largest market share in 2023. Lithium-ion batteries have emerged as the preferred choice for electric vehicles due to their superior power storage capabilities per unit weight compared to alternatives like nickel-cadmium. Formerly, nickel-cadmium and nickel metal hydride batteries were utilized in computers and cell phones; however, they exhibited lower power capacities, shorter charging periods, and greater weight compared to lithium batteries. Li-ion batteries boast high energy density, prolonged runtime, and extended life cycles, addressing the evolving needs of the global energy market.
Lithium Compound Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business.
In the competitive lithium compound market, companies deploy various strategies to sustain competitiveness and address burgeoning demand. A prevalent tactic involves forging strategic partnerships and collaborations throughout the supply chain. These alliances enable companies to streamline production processes, elevate product standards, and pioneer innovative End Uses for lithium compounds. Moreover, companies prioritize research and development endeavors to enhance production efficiency, curtail costs, and unearth novel End Uses for lithium compounds in burgeoning sectors like electric vehicles, renewable energy, and pharmaceuticals. Through harnessing strategic alliances and fostering innovation, companies can seize market opportunities and uphold leading positions in the rapidly evolving landscape of lithium compounds.
In February 2023, Lithium Americas announced the closure of the initial $320M tranche of the previously disclosed $650M investment by General Motors (GM). This investment positions GM as the largest shareholder and offtake partner of Lithium Americas. The proceeds from GM's investment are earmarked to expedite the development of the Thacker Pass project in Nevada, the largest known lithium resource in the U.S. that has obtained full permits for construction. Lithium Americas anticipates the closure of the second and final tranche subsequent to the anticipated separation of its U.S. and Argentine businesses in the second half of 2023.
GLOBAL LITHIUM COMPOUND MARKET KEY PLAYERS- DETAILED COMPETITIVE INSIGHTS
Sociedad Quimica y Minera de Chile S.A. (SQM)
Livent Corporation
Albemarle Corporation
Tianqi Lithium Industries Inc.
Ganfeng Lithium Company Limited
China Lithium Products Technology Company Limited
Sichuan Ni&Co Guorun New Materials Company Limited
Shanghai China Lithium Industrial Company Limited
Nemaska Lithium Inc.
Bacanora Lithium
Lithium Americas
Galaxy Resources Limited
Orocobre Limited
Shandong Ruifu Lithium Industry Company Limited
Neo Lithium Corporation
Millennial Lithium Corporation
Others