Lithium Compounds Market by Derivative (Lithium Carbonate, Lithium Hydroxide, Lithium Chloride, Butyl Lithium, Lithium Metal)

The market growth is driven by the increasing demand for lithium compounds from end uses such as Li-ion batteries, glass & ceramics, polymers, and lubricants, among others, is expected to drive the lithium compounds market.

Lithium Compounds Market

Based on derivative, the lithium carbonate segment accounted for the largest share of the lithium compounds market in 2019. Lithium carbonate is a lithium salt of carbonate used widely in the processing of metal oxides. It is the first lithium compound that is extracted from the brines and the first compound in the production chain; it is a building block for other lithium derivatives. Lithium carbonate is used in various applications such as glass & ceramics, aluminum production, pharmaceuticals, and Li-ion batteries. It is also used to reduce the melting point of silica that is used in ovenware glass. In ceramics, it is used to render color & shine. The rising demand for lithium carbonate from the Li-ion battery industry is expected to drive its market during the forecast period.

Based on end use, the Li-ion batteries segment accounted for the largest share in 2019. Lithium-ion batteries have become the gold standard for electric vehicles because they store more power per unit of weight compared to alternatives such as nickel-cadmium. Nickel-cadmium and nickel metal hydride batteries were formerly used in computers and cell phones. However, these sources of energy had low power capabilities, shorter charge periods, and were heavier than lithium batteries. Li-ion batteries have a high energy density, longer run time, and an extended life cycle compared to traditional lead-acid batteries, which helps meet the current requirements of the worldwide energy market.

In accordance with the Paris Climate Agreement, many governments across the world are encouraging the use of electric vehicles to reduce their carbon footprint. These electric vehicles use Li-ion batteries as their sole energy source and hence, result in zero emission through their exhausts. Governments of countries like Norway, Iceland and China have provided heavy subsidies and tax omissions to buyers of electric vehicles, which has propelled the growth of this segment.

Lithium Compounds Market

By region, Asia Pacific accounted for the largest share in the global lithium compounds market in 2019. The rising demand for new energy storage applications in vehicles, grid connected energy storage, and the high demand for consumer gadgets are expected to change the market dynamics. Massive economic expansion and the flourishing electronics and electric vehicle industries in Asia Pacific countries such as China, Japan, South Korea, Thailand, and Taiwan, are responsible for the market’s high growth rate in the region. Currently, China is the largest market for lithium compounds in the Asia Pacific region. The market here is also projected to register the highest CAGR during the forecast period (2020-2025) in terms of value and volume.

Based on end use,the lithium compounds market has been segmented into:

  • Li-ion Batteries
  • Glass & Ceramics
  • Medical
  • Lubricants
  • Metallurgy
  • Polymers
  • Others (grid storage, cement & concrete, dyestuff, industrial bleaching, pool chemicals, and specialty inorganics)

Based on derivatives the lithium compounds market has been segmented into:

  • Lithium Carbonate
  • Lithium Hydroxide
  • Lithium Concentrate
  • Lithium Metal
  • Butyl Lithium
  • Lithium Chloride & Others (lithium bromide, lithium iodide, lithium oxide, and lithium chromate)

Based on the region, the lithium compounds market has been segmented into:

  • Asia Pacific
  • North America
  • Europe
  • Rest of the World

Welcome your comments on the questions below:

  • How are the developments undertaken by various companies expected to affect the lithium compounds market in the mid- to long-term?
  • What are the upcoming industry end uses of lithium compounds?
  • What is the impact of changes in government policies on the lithium compounds market?
  • What is the estimated size of the lithium compounds market in 2020?
  • What are the different derivatives of lithium compounds?
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