The Global Lithium Compounds Market accounted for US$ 3,956 Mn in 2021 and is expected to reach US$ 25,547 Mn by 2030 with a considerable CAGR of 23.4%during the forecast timeframe of 2022 to 2030.

As a metal, lithium is an element with unique physical and chemical properties. There are numerous uses for lithium and its compounds. The glass and ceramics industry and aluminum production are two of the most popular applications in the industry. In addition, lithium and its derivatives are also used in a variety of industrial applications including lithium grease petroleum products, high-temperature glass, and ceramics, and flux additives for the manufacture of steel, iron, and other metals. In addition, lithium compounds are used as catalysts in a variety of industrial processes. A catalyst compound is a substance that can speed up or slow down a chemical reaction. For example, a lithium catalyst is used to make a strong and durable synthetic rubber. Unlike natural rubber, synthetic rubber containing lithium compounds does not need to be vulcanized.

Drivers

·         Growing demands for Li-ion batteries in electric vehicles

·         Increasing demand from a variety of end-user industries, including glass and ceramics

Restraints

·         The high operational cost of the production of lithium and its compounds

Opportunity

·         Increasing use of portable devices with rechargeable batteries

·         Strict government regulation toward the environmental concern

Lithium Compounds Market Dynamics

The increasing adoption of lithium compounds from end-use industries such as Li-ion batteries, polymers, lubricants, glass, and ceramics, among others, is expected to propel the lithium compounds market. Furthermore, the rising demand for lithium and lithium-ion batteries in electric mobility due to the relatively low self-discharge rate, quick charging, extended life cycle, high power density, and lightweight will boost product demand for the market. Furthermore, strict government regulations governing environmental controls via vehicle carbon emissions, backed up by companies forming strategic partnerships to develop battery cells and electric vehicles, will drive industry growth. The increased demand for energy-saving devices with decent battery backup as a result of various factors such as a drastic shift in lifestyle, technological advancements, and others is driving the lithium compounds market. Furthermore, the high operational cost of lithium production is a major restraint to the growth of the lithium compounds market.

Market Segmentation

Market by Derivative

·         Lithium Carbonate

·         Lithium Hydroxide

·         Lithium Chloride

·         Spodumene

·         Others

Based on the derivation, lithium carbonate will account for more than half of the global lithium compound industry in 2021. Lithium carbonate is the first lithium compound material derived from a lithium chain, and it serves as a necessary component for other lithium compounds. Lithium carbonate, also known as lithium salt of carbonate, is an inorganic compound with the molecular formula Li2CO. Lithium carbonate is primarily in lithium-ion batteries and lithium Stearic acid for use in lubricants and greases. Lithium carbonate is widely used in metal oxide processing. Furthermore, in the medical field, Lithium Carbonate is indeed a prescription drug used to treat the side effects of Bipolar Disorder. Lithium Carbonate can be used alone or in combination with other treatments.  In oven glasses, lithium carbonate can also be used to lower the melting temperature of silica. This is one of the primary factors driving lithium carbonate demand within the lithium compounds industry.

Market by Application

·         Batteries

·         Metallurgical

·         Glass & Ceramics

·         Lubricants

·         Others

Based on the application, the batteries segment will hold the largest market share in 2021. This expansion can be attributed to the increasing demand for lithium-ion batteries in electric vehicles and grid storage, as they provide high-energy density solutions while remaining small and light in weight. The resultant increase in EV registration and a decrease in the cost of the lithium-ion battery are expected to increase market size over the projected timeframe. The growing desire to keep the environment safe has fueled the growth of hydropower such as photovoltaic installations and nuclear power plants, as well as renewable power projects are fueling the growth of lithium-ion batteries. Furthermore, the rising popularity of lithium-ion battery machinery in the medical sector is fueling growth. Furthermore, with the increasing use of rechargeable batteries in material-handling machinery in industries due to automation, the demand for these batteries is increasing. Aside from that, rising demand for battery-electric and plug-in hybrid vehicles, as well as increased adoption of lithium-ion batteries in the renewable energy industry, are propelling the segment forward.

Lithium Compounds Market Regional Overview