Lithium Carbonate Market Growth, Analysis, and Forecast by 2031

[Research Report] The lithium carbonate market size was valued at US$ 5,280.92 million in 2022 and is projected to reach US$ 7,024.31 million by 2030; it is anticipated to record a CAGR of 3.6% from 2022 to 2030.

MARKET ANALYSIS 

Lithium carbonate is an inorganic compound widely used in various applications such as the production of lithium-ion batteries, drug production, glass and ceramics, aluminum, air conditioning, greases and lubricants, chemicals, and metallurgy. Lithium carbonate is a precursor of lithium grease, which is generally used as a lubricant in various industrial applications. It is also used in lithium bromide absorption refrigeration systems. The widespread adoption of lithium-ion batteries in recent years has significantly increased the demand for lithium carbonate, making it a significant constituent in the development of technologies related to energy storage, electric transportation, and electronics.

GROWTH DRIVERS AND CHALLENGES

The rising production of lithium-ion batteries for electric vehicle production and the adoption of lithium carbonate in the ceramics industry are a few factors boosting the growth of the global lithium carbonate market. Lithium carbonate is a source of lithium ions and, therefore, is used in the production of cathode materials. The increasing demand for lithium-ion batteries can be attributed to the growing demand for electric vehicles, renewable energy storage, and portable electronic devices. Lithium-ion batteries are the preferred choice for electric vehicles due to their high energy density, long cycle life, and lightweight compared to conventional batteries. The expansion of renewable energy sources has further created the need for efficient energy storage solutions. Advancements in battery technology and manufacturing processes have led to significant cost reductions in lithium-ion battery production. This has made electric vehicles more affordable and encouraged further adoption. Lithium carbonate is used in the ceramic industry for its fluxing properties, promoting vitrification in ceramic glazes. It also helps lower the melting temperature needed to achieve proper maturation of the ceramic formulation. It enhances the forming characteristics of ceramics and influences color development in certain glazes.

Environmental concerns and supply chain vulnerabilities pose challenges to market growth. Geopolitical factors, mining challenges and availability of lithium reserves influence the lithium supply chain. The lithium market has experienced price volatility due to factors such as supply-demand dynamics and changes in government policies. Lithium extraction processes involving conventional mining can pose environmental impacts. Concerns related to water utilization, soil degradation, and chemical use in lithium mining can lead to strict regulations, potentially affecting the manufacturing and processing of lithium carbonate. Hence, environmental concerns and supply chain vulnerabilities restrain the lithium carbonate market growth.

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REPORT SEGMENTATION AND SCOPE

The "Global Lithium Carbonate Market Analysis and Forecast to 2030" is a specialized and in-depth study with a significant focus on global market trends and growth opportunities. The report aims to provide an overview of the global market with detailed market segmentation on the basis of grade, application, and geography. The report provides key statistics on the consumption of lithium carbonate across the world, along with their demand in major regions and countries. In addition, the report provides a qualitative assessment of various factors affecting the lithium carbonate market performance in major regions and countries. It also includes a comprehensive analysis of the leading players in the lithium carbonate market and their key strategic developments. Analysis of the market dynamics is also included to help identify the key driving factors, market trends, and lucrative opportunities, which, in turn, aid in identifying the major revenue pockets.

The ecosystem analysis and Porter’s five forces analysis provide a 360-degree view of the global lithium carbonate market, which helps understand the entire supply chain and various factors affecting the market growth.

SEGMENTAL ANALYSIS

The global lithium carbonate market is divided on the basis of grade and application. Based on grade, the lithium carbonate market is segmented into industrial grade, pharmaceutical grade, and battery grade. Based on application, the market is segmented into batteries, ceramic and glass production, lubricants, pharmaceuticals, metallurgy, and others. Further, the battery grade segment accounted for a significant share of the lithium carbonate market in 2022. Battery-grade lithium carbonate is specifically produced for utilization in rechargeable batteries or lithium-ion batteries. The production of battery-grade lithium carbonate plays a major role in the overall efficiency and safety of lithium-ion batteries, widely used in electric vehicles and energy storage systems. Pharmaceutical-grade lithium carbonate refers to a high-purity form specifically produced for utilization in pharmaceutical and medical applications. It is used as medication in the treatment of certain psychiatric disorders. Industrial-grade lithium carbonate has a broad range of applications in the glass and ceramics industry, air conditioning, greases, and aluminum production.

Based on application, the batteries segment accounted for a significant share in 2022. The most significant application of lithium carbonate is the manufacturing of lithium-ion batteries. These batteries are majorly used in portable electronic devices, electric vehicles, and energy storage systems due to their high energy density and rechargeable capabilities. Lithium carbonate is used as medication in psychiatry. It is used for the production of mood-stabilizing drugs used in the treatment of bipolar disorder. Lithium carbonate is also used as a flux in the glass and ceramic industry. Lithium carbonate is also used as a flux in the processing of aluminum in the aluminum industry. It is a precursor to lithium grease, used as a lubricant in various industries.

REGIONAL ANALYSIS

The report provides a detailed overview of the global lithium carbonate market with respect to five major regions—North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. Asia Pacific accounted for a significant share of the lithium carbonate market and was valued at more than US$ 4 billion in 2022. Asia Pacific is a hub for major lithium-ion battery producers with a large presence of international and domestic players operating in the electric vehicles market. In recent years, China has emerged as a major contributor to the global electric vehicles market. The growing production of electric vehicles in the country is also driven by supportive government policies such as the introduction of the “New Energy Vehicle Industry Development Plan,” launched in 2020.

The Europe market is expected to reach more than US$ 600 million by 2030. According to the European Commission, in Europe, 197 thousand plugin vehicles were registered in April 2023, recording a rise of 25% year-on-year. Europe also has a strong and competitive ceramics industry, one of the major consumers of lithium carbonate. The region marks the presence of many small and medium-sized ceramic manufacturers. Therefore, the expansion of the electric vehicles industry is projected to fuel the demand for lithium carbonates in Europe in the coming years. The North America lithium carbonate market is expected to account for over 7% of the global lithium carbonate market in 2030. Government policies have encouraged the growth of battery-powered electric vehicle production and sales. The US government is also planning to raise tax credits for the purchase of electric vehicles.

Lithium Carbonate Market Regional Insights

The regional trends and factors influencing the Lithium Carbonate Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Lithium Carbonate Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Lithium Carbonate Market Report Scope

Lithium Carbonate Market Players Density: Understanding Its Impact on Business Dynamics

The Lithium Carbonate Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

INDUSTRY DEVELOPMENTS AND FUTURE OPPORTUNITIES

Various initiatives taken by the key players operating in the lithium carbonate market are listed below:

• In August 2023, E3 Lithium produced the first lithium carbonate from its resources in the US. Further, testing was conducted to treat a concentrated sample produced by the direct lithium extraction technology.
• In February 2023, Livent Corporation reported the first 10,000 metric ton expansion of lithium carbonate in Argentina.
• In April 2022, SQM invested US$ 900 million for the expansion of lithium carbonate capacity to ~180 thousand metric ton per year.

IMPACT OF COVID-19 PANDEMIC/IMPACT OF GEOPOLITICAL SCENARIO/IMPACT OF RECESSION

Before the COVID-19 pandemic, many countries across the globe reported economic growth. The key manufacturers invested in the research and development of lithium carbonate. They also focused on the expansion of geographic reach through merger and acquisition strategies to cater to a wide customer base. Before the COVID-19 pandemic, lithium carbonate producers reported steady growth in manufacturing due to increasing demand for electric vehicles. According to the US International Trade Commission (USITC), owing to the high vulnerability of the automotive industry, vehicle sales in the US decreased by 15% in 2020 compared to 2019. During the pandemic, supply chain disruptions, raw material and labor shortages, and operational difficulties created a demand and supply gap, which adversely affected the lithium carbonate market growth.

The production shortfall caused by severe disruptions in supply chains and limited skilled laborers created a demand-supply gap in many regions, particularly Asia Pacific, Europe, and North America. The demand and supply gap were also recorded in the regions above due to fluctuating demand from major end-use industries. In 2021, rising vaccination rates contributed to improvements in the overall conditions in different countries, which led to conducive environments for the chemicals & materials industry. The sales of lithium carbonate increased with the resumption of production & sales operations of electric vehicle manufacturers and battery-producing companies.

COMPETITIVE LANDSCAPE AND KEY COMPANIES

Albemarle Corporation, SQM SA, Targray, Noah Chemicals, Livent, Imerys, Tianqi Lithium, Alfa Aesar, Otto Chemie Pvt Ltd, and Celtic Chemicals Ltd are among the key players operating in the lithium carbonate market.