Lithium Compounds Market Expected to Reach $33.5 Billion by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Lithium Compounds Market," 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 is a fragile, silver-white, highly flammable, and reactive metal. Typically, it is stored in mineral oil. Predicted lithium concentrations in the earth's crust range from 20 to 70 parts per million by weight. Lithium is usually present in animals, plants, soil, and the human body. It is typically extracted from ore deposits and mineral springs, where it occurs in minute quantities. It is utilized in aircraft cooling systems, special spectacles, bicycle frames, rechargeable batteries, nuclear reactor glass ceramics, and armor plating.

The increase in the use of lithium compounds in the construction industry is presently one of the primary factors that drive the expansion of the market. The surge in demand for renovation and innovative construction of residential buildings as a result of changing consumer living standards provides a positive outlook for the market. In addition, there is a global increase in the use of lithium compounds in the production of glass and air conditioning systems. This, along with the increase in infrastructure development activities in commercial sectors across the globe augments the market's expansion.

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.

Technical inability is a significant obstacle for new entrants. For instance, in 2020 the Bolivian government had to overcome significant management and technological challenges when trying to extract large-scale, high-density lithium resources from the Salar de Uyuni salt flat. Likewise, Chinese producers Quinghai Lithium and Citic Guoan MGL, who hoped to exploit sources close to Tibet, encountered significant obstacles. This factor is anticipated to inhibit market expansion.

The increase in investment in the electric vehicle market as a result of the high demand for two-wheeled vehicles in developing nations is anticipated to result in the adoption of rechargeable batteries such as lithium-ion batteries in the near future. According to Avenue Capitals, the electric vehicle (EV) market in India is anticipated to reach Rs 50,000 crore (US$7.09 billion) by 2025 for two- and three-wheeled vehicles, creating opportunities for market growth. Moreover, the rise in technological advancements and diversity in the end-user industry is projected to create additional opportunities for the market for lithium compounds during the forecast period.

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.

On the basis of type, the lithium compounds market is categorized as lithium carbonate, lithium hydroxide, lithium concentrate, lithium metal, lithium chloride, butyllithium, and others. Lithium hydroxide is projected to be the fastest-growing segment and lithium carbonate has garnered the highest share in the Lithium compounds market.

On the basis of application, the lithium compounds market is categorized into Li-ion batteries, glass and glass ceramics, automotive parts, greases, metallurgy, polymer, air treatment, and others. Li-ion batteries are projected to be the fastest-growing segment and have garnered the highest share in the Lithium compounds market.

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 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.