The global lithium compounds market was valued at $7.1 billion in 2022 and is projected to reach $33.5 billion by 2032, growing at a CAGR of 16.9% from 2023 to 2032.
Lithium compounds exhibit high solubility in water and at low concentrations. It does not pose significant harm to the environment. This characteristic makes it relatively safe when present in natural water sources. The industrial applications of lithium are primarily driven by its unique chemical properties. As a highly reactive metal, lithium readily loses one electron, leading to the formation of lithium compounds containing the Li+ cation. One notable example is lithium carbonate, which demonstrates retrograde solubility, meaning its solubility decreases with an increase in temperature. Owing to its reactivity and pyrophoric nature, lithium is typically stored in mineral oil as it is insoluble in cold water. This helps to prevent reactions with moisture and air, reducing the risk of fire or explosion.
Lithium carbonate is used to treat maniac-depressive disorders (bipolar disorder) with medication. By restoring the equilibrium of neurotransmitters (natural substances in the brain), lithium carbonate is used to stabilize mood and reduce extreme behaviors. It decreases the intensity and frequency of hysteria. A lithium compound has been shown to reduce the risk of suicidal tendencies in patients with mental illness. According to the most recent data provided by the World Health Organization (WHO) on depression and suicide in 2019, more than 264 million people globally suffer from depression and approximately 800 thousand people commit suicide annually. Annually, suicide is the second leading cause of mortality among those aged 15 to 29. Lithium carbonate is increasingly used in the manufacturing of medications for mental health conditions as mental health awareness and the treatment of such illnesses increase. This further drives the market for lithium compounds.
One of the main factors inhibiting the growth of the lithium compounds market is the high operational costs associated with the production of lithium compounds. Owing to the high costs associated with lithium compound installation and administration, the market for lithium compounds is extremely constrained. In addition, fluctuating lithium prices are one of the most significant factors inhibiting the development of the lithium compounds market. The price of lithium carbonate increased by 32.02 % in May 2021, compared to 19.30 % in January 2021, according to data from Trading Economics. This fluctuation is one of the greatest hurdles faced by the market for lithium compounds.
The rise in adoption of lithium in smart grid electricity is anticipated to offer significant growth opportunities for market players. The market growth is expected to be positively influenced by increased investments in electricity grids. For instance, investments in electricity grids were estimated to reach $290 billion in 2021 by IEA, recovering from 2021 and surpassing the 2019 level of $270 billion. The investment in electricity grids signifies the recognition of the importance of modernizing and enhancing the efficiency of power infrastructure. As smart grid technologies gain momentum, the demand for advanced energy storage solutions such as lithium-based systems is expected to increase. Lithium batteries can provide reliable and scalable energy storage, enabling efficient integration of renewable energy sources, demand response management, and grid stability. By leveraging the capabilities of lithium in smart grid applications, utilities can optimize energy utilization, improve grid resilience, and enable more effective management of electricity generation, transmission, and distribution. These advancements create opportunities for market players in the lithium industry to cater to the surge in demand for energy storage solutions in the expanding smart grid electricity industry.
The Lithium compounds market is segmented into type, application, and region. Depending on the type, the market is divided into lithium carbonate, lithium hydroxide, lithium concentrate, lithium metal, lithium chloride, butyllithium, and others. On the basis of application, it is categorized into Li-ion batteries, glass & glass ceramics, automotive parts, greases, metallurgy, polymer, air treatment, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The major players operating in the global lithium compounds market are Lithium Americas Corp, Albemarle Corporation, Neometals Ltd., FMC Corporation, Livent, Orocobre Limited, Bacanora Lithium, Sigma Lithium, Ganfeng Lithium Co., Ltd., SQM S.A.
Other players include Galaxy Resources Limited, Pilbara Minerals Limited, Altura Mining Limited, Sayona Mining Limited, Critical Elements Lithium Corporation, Piedmont Lithium Limited, Bacanora Lithium Plc, Sigma Lithium Resources Corporation.
Lithium compounds exhibit high solubility in water and at low concentrations. It does not pose significant harm to the environment. This characteristic makes it relatively safe when present in natural water sources. The industrial applications of lithium are primarily driven by its unique chemical properties. As a highly reactive metal, lithium readily loses one electron, leading to the formation of lithium compounds containing the Li+ cation. One notable example is lithium carbonate, which demonstrates retrograde solubility, meaning its solubility decreases with an increase in temperature. Owing to its reactivity and pyrophoric nature, lithium is typically stored in mineral oil as it is insoluble in cold water. This helps to prevent reactions with moisture and air, reducing the risk of fire or explosion.
Lithium carbonate is used to treat maniac-depressive disorders (bipolar disorder) with medication. By restoring the equilibrium of neurotransmitters (natural substances in the brain), lithium carbonate is used to stabilize mood and reduce extreme behaviors. It decreases the intensity and frequency of hysteria. A lithium compound has been shown to reduce the risk of suicidal tendencies in patients with mental illness. According to the most recent data provided by the World Health Organization (WHO) on depression and suicide in 2019, more than 264 million people globally suffer from depression and approximately 800 thousand people commit suicide annually. Annually, suicide is the second leading cause of mortality among those aged 15 to 29. Lithium carbonate is increasingly used in the manufacturing of medications for mental health conditions as mental health awareness and the treatment of such illnesses increase. This further drives the market for lithium compounds.
One of the main factors inhibiting the growth of the lithium compounds market is the high operational costs associated with the production of lithium compounds. Owing to the high costs associated with lithium compound installation and administration, the market for lithium compounds is extremely constrained. In addition, fluctuating lithium prices are one of the most significant factors inhibiting the development of the lithium compounds market. The price of lithium carbonate increased by 32.02 % in May 2021, compared to 19.30 % in January 2021, according to data from Trading Economics. This fluctuation is one of the greatest hurdles faced by the market for lithium compounds.
The rise in adoption of lithium in smart grid electricity is anticipated to offer significant growth opportunities for market players. The market growth is expected to be positively influenced by increased investments in electricity grids. For instance, investments in electricity grids were estimated to reach $290 billion in 2021 by IEA, recovering from 2021 and surpassing the 2019 level of $270 billion. The investment in electricity grids signifies the recognition of the importance of modernizing and enhancing the efficiency of power infrastructure. As smart grid technologies gain momentum, the demand for advanced energy storage solutions such as lithium-based systems is expected to increase. Lithium batteries can provide reliable and scalable energy storage, enabling efficient integration of renewable energy sources, demand response management, and grid stability. By leveraging the capabilities of lithium in smart grid applications, utilities can optimize energy utilization, improve grid resilience, and enable more effective management of electricity generation, transmission, and distribution. These advancements create opportunities for market players in the lithium industry to cater to the surge in demand for energy storage solutions in the expanding smart grid electricity industry.
The Lithium compounds market is segmented into type, application, and region. Depending on the type, the market is divided into lithium carbonate, lithium hydroxide, lithium concentrate, lithium metal, lithium chloride, butyllithium, and others. On the basis of application, it is categorized into Li-ion batteries, glass & glass ceramics, automotive parts, greases, metallurgy, polymer, air treatment, and others. Region-wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA.
The major players operating in the global lithium compounds market are Lithium Americas Corp, Albemarle Corporation, Neometals Ltd., FMC Corporation, Livent, Orocobre Limited, Bacanora Lithium, Sigma Lithium, Ganfeng Lithium Co., Ltd., SQM S.A.
Other players include Galaxy Resources Limited, Pilbara Minerals Limited, Altura Mining Limited, Sayona Mining Limited, Critical Elements Lithium Corporation, Piedmont Lithium Limited, Bacanora Lithium Plc, Sigma Lithium Resources Corporation.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the lithium compounds market analysis from 2022 to 2032 to identify the prevailing lithium compounds market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the lithium compounds market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global lithium compounds market trends, key players, market segments, application areas, and market growth strategies.
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Key Market Segments
By Type
- Lithium Chloride
- Butyllithium
- Others
- Lithium Carbonate
- Lithium Hydroxide
- Lithium Concentrate
- Lithium Metal
By Application
- Li ion Batteries
- Glass and Glass Ceramics
- Automotive Parts
- Greases
- Metallurgy
- Polymer
- Air Treatment
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- India
- Japan
- South Korea
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
- Albemarle Corporation.
- Bacanora Lithium
- FMC Corporation.
- Ganfeng Lithium Group Co., Ltd
- Lithium Americas Corp.
- Livent
- Neometals Ltd
- Orocobre Limited Pty Ltd
- Sigma Lithium
- SQM S.A
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: LITHIUM COMPOUNDS MARKET, BY TYPE
CHAPTER 5: LITHIUM COMPOUNDS MARKET, BY APPLICATION
CHAPTER 6: LITHIUM COMPOUNDS MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to this report, the lithium compounds market was valued at $7.1 billion in 2022, and is estimated to reach $33.5 billion by 2032, growing at a CAGR of 16.9% from 2023 to 2032.Lithium compounds are chemical compounds that contain lithium as an essential element and are used in various applications across multiple industries. These compounds play a crucial role in the energy storage, electronics, ceramics, glass, pharmaceuticals, and lubricants sectors. Lithium compounds are primarily known for their use in rechargeable lithium-ion batteries, which are extensively used in portable electronic devices, electric vehicles, and renewable energy storage systems. The increase in demand for electric vehicles and renewable energy sources has been a significant driver for the growth of the lithium compound market. As the world transitions toward a more sustainable and clean energy future, the demand for lithium compounds is expected to rise.
In lithium-ion rechargeable battery technology, lithium compounds are commonly used to conserve and save energy. In devices such as mobile phones, cameras, laptop computers, power apparatus, and vehicles, lithium-ion batteries are utilized. Lithium-ion batteries are an integral component of both internal combustion and electric vehicles. Lithium-ion batteries are preferred in the automotive industry due to their high energy density, low self-discharge rate, long life cycle, inexpensive maintenance, quick charging, and low weight. Ni-Cd batteries are in high demand, as they are presently utilized in some hybrid electric vehicles. In India, Southeast Asia, and South Korea, hybrid vehicle sales and demand have increased substantially over the past few years.
According to the Bureau of Economic Analysis (BEA), the value added by manufacturing electrical appliances, equipment, and components in the U. S. during the third quarter of 2022 was approximately $73.8 billion, an increase of approximately 8% compared to the same period the year prior. In the first three quarters, the total value added was close to $220 billion.
In addition, the cumulative output of computer and electronic product manufacturing in the U. S. during the first three quarters of 2022 was approximately $1,300 billion. In 2022, the economy grew by 7% compared to the same period in 2021 ($1,200 billion). The International Energy Agency (IEA) reported in its 'September 2022 Electric Vehicles Outlook' that despite supply chain constraints, sales of electric cars attained a record high in 2021. Compared to 2020, sales nearly doubled to 6.6 million, bringing the number of electric vehicles on the road to 16.5 million. The rise in the number of electric vehicles and the surge in the use of electronic equipment in developing nations fuel the demand for rechargeable batteries, which may propel the lithium compounds market.
One of the main factors inhibiting the growth of the lithium compounds market is the high operational costs associated with the production of lithium compounds. Owing to the high costs associated with lithium compound installation and administration, the market for lithium compounds is extremely constrained. In addition, fluctuating lithium prices are one of the most significant factors inhibiting the development of the lithium compounds market. The price of lithium carbonate increased by 32.02 % in May 2021, compared to 19.30 % in January 2021, according to data from Trading Economics. This fluctuation is one of the greatest hurdles faced by the market for lithium compounds.
The rise in the adoption of lithium in smart grid electricity is anticipated to offer significant growth opportunities for market players. The market growth is expected to be positively influenced by increased investments in electricity grids. For instance, investments in electricity grids were estimated to reach $290 billion in 2021 by IEA, recovering from 2021 and surpassing the 2019 level of $270 billion. The investment in electricity grids signifies the recognition of the importance of modernizing and enhancing the efficiency of power infrastructure. As smart grid technologies gain momentum, the demand for advanced energy storage solutions such as lithium-based systems is expected to increase. Lithium batteries can provide reliable and scalable energy storage, enabling efficient integration of renewable energy sources, demand response management, and grid stability. By leveraging the capabilities of lithium in smart grid applications, utilities can optimize energy utilization, improve grid resilience, and enable more effective management of electricity generation, transmission, and distribution. These advancements create opportunities for market players in the lithium industry to cater to the surge in demand for energy storage solutions in the expanding smart grid electricity industry.
For the purpose of analysis, the lithium compounds market scope covers segmentation on the basis of type, application, and region. The report provides information on various types, including lithium carbonate, lithium hydroxide, lithium concentrate, lithium metal, lithium chloride, butyllithium, and others. Furthermore, the major applications covered in the study include Li-ion batteries, glass & glass ceramics, automotive parts, greases, metallurgy, polymer, air treatment, and others. In addition, it analyzes the current market trends across different regions such as North America, Europe, Asia-Pacific, and LAMEA.
The major players operating in the global Lithium compounds market are Lithium Americas Corp, Albemarle Corporation, Neometals Ltd., FMC Corporation, Livent, Orocobre Limited, Bacanora Lithium, Sigma Lithium, Ganfeng Lithium Co., Ltd., SQM S. A.
Other players include Galaxy Resources Limited, Pilbara Minerals Limited, Altura Mining Limited, Sayona Mining Limited, Critical Elements Lithium Corporation, Piedmont Lithium Limited, Bacanora Lithium Plc, and Sigma Lithium Resources Corporation.
Key Findings of the Study
On the basis of type, the lithium hydroxide segment is expected to grow at a CAGR of 17.4%, in terms of revenue, during the forecast period.Depending on application, the Li-ion batteries segment is expected to grow at a CAGR of 17.5%, in terms of revenue, during the forecast period.
Region-wise, Asia-Pacific garnered the highest share in 2022 in terms of revenue.
Companies Mentioned
- Albemarle Corporation.
- Bacanora Lithium
- FMC Corporation.
- Ganfeng Lithium Group Co., Ltd
- Lithium Americas Corp.
- Livent
- Neometals Ltd
- Orocobre Limited Pty Ltd
- Sigma Lithium
- SQM S.A
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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