Lithium Compound Market

Lithium Compound Market Overview for 2024 to 2034

The lithium compound market is anticipated to be worth USD 11.8 billion in 2024. The market is expected to grow at an astounding rate from 2024 to 2034, with a CAGR of 21.3%. By 2034, the market value is predicted to hit USD 81.5 billion.

Lithium Compound Market Analysis

• Lithium compounds are finding use in batteries on an increasing scale, with the popularity of lithium-ion batteries surging.
• Lithium compound is being used to manufacture sterner and clearer glass, leading to the glass industry emerging as a promising industry for the product.
• Lithium is considered a strong corrective in medicine; thus, the use of lithium compounds in the pharmaceutical sector is growing.
• Lithium compound’s use in the pharmaceutical sector is growing further as medication manufacturing for mental illnesses is growing, with the lifting of stigma around treatment for mental disorders.

Attributes	Details
Lithium Compound Market Value for 2024	USD 11.8 billion
Projected Market Value for 2034	USD 81.5 billion
Value-based CAGR of Market for 2024 to 2034	21.3%

Lithium Compound Market Trends

• One of the popular lithium compounds is lithium hydroxide, and the compound’s use in air purification systems is propelling the demand in the market.
• A boom in industrial production in certain regions is leading to increased production and use of lubricants. These lubricants use lithium compounds for better adaptability to machines, thus increasing the profile of the product.
• With the stellar rise of the automobile industry, the use of greases is ever-increasing, and lithium compounds are being integrated into these greases to make them more solid.
• The rise in research in the chemical industry allows more experimentation with lithium compounds and new applications for the product.
• Lithium chloride's dry properties are used as a desiccant in increasing measure, both in food & beverage and industrial processes.
• Lithium compounds are penetrating further into the agricultural sector as the use of fertilizers, which contain lithium compound, in farming increases.
• As with other chemicals, there is customer aversion towards possibilities of infection and allergies related to lithium, which puts a constraint on the growth of the market.

Category-wise Outlook

Use of Lithium Chloride in Automobile and Biochemical Industries is Informing the Positive Growth Rate of the Product

For the 2024 to 2034 period, lithium chloride is expected to progress at a CAGR of 21.0%. Some of the key drivers for the increasing use of lithium chloride are:

• Lithium chloride finds prominent application in the automobile industry, with the compound being used to manufacture aluminum for car parts. As automobile production gets ramped up, lithium chloride sales are benefitting.
• As research in the biochemical field advances, lithium chloride is increasingly seen as an essential element of genetic testing. The compound uses precipitating RNA and is thus experiencing significant demand from the biochemical research avenue.

Attributes	Details
Top Type	Lithium Chloride
CAGR (2024 to 2034)	21.0%

Usage of Li-ion Batteries in Aircraft Seeing the Demand for the Product Soar

Li-ion batteries are predicted to progress at a CAGR of 20.9% over the forecast period. Some of the key drivers for its progress include:

• Li-ion or lithium-ion batteries are emerging as a sustainable alternative to fuel in aircraft. As the testing and development of electrical aircraft take lift off, lithium batteries have bright prospects in the aircraft sector.
• As electric vehicles become more commonplace on the road, lithium battery sales are being driven up, which benefits the lithium compound industry.

Attributes	Details
Top Application	Li-ion Batteries
CAGR (2024 to 2034)	20.9%

Country-wise Analysis

Impressive quantities of automobile production in the Asia Pacific, including electric vehicles, are signaling a positive outlook for the market in the region. The region’s burgeoning chemical research industry also aids in the market’s development.

The overall pharmaceutical use of the compound is also increasing, with the admittance rates to hospitals reaching substantial quantities in the regions.

Countries	CAGR
South Korea	23.4%
Japan	22.9%
China	21.9%
United Kingdom	22.6%
United States	21.7%

Significant Research Capabilities of South Korean Chemical Research Institutes Propel the Compound’s Demand in the Region

The market is set to register a CAGR of 23.4% in South Korea for the forecast period. The key drivers for growth are:

• With government encouragement for research in scientific areas, universities and research in South Korea are often at the forefront of the latest developments. This includes the chemical and biochemical sectors too.
• Countrywide campaigns for greater awareness of mental health are seeing mental health medication stocks rise in the country, thus providing a significant avenue for the development of lithium compounds in South Korea.

China’s Considerable Ceramic Capabilities Conducive to Catapultian of the Compound’s Cravings in the Country

The CAGR for lithium compound in China is tipped to be 21.9% over the forecast period. Some of the key factors driving the growth are:

• The ceramic industry in China is significant, and as their manufacture rises in the country, lithium compounds are increasingly being called upon to assist in their making.
• Glass manufacturing is a renowned industry in China, and lithium compounds are making their presence felt through glass in the country.

Japan’s Fast-developing Pharmaceutical Industry Aiding the Cause of Lithium Compounds in the Country

The market is expected to register a CAGR of 22.9% in Japan. Some of the key trends include:

• Japan’s healthcare sector is developing fast, especially with the rising population age in the country. As the number of patients increases, there is an enhanced need for medication. Thus, lithium compounds are marking out their territory in Japan through medicines.
• Japan’s automobile sector is going from strength to strength, and with the use of lubricants and greases increasing as a result, the lithium compound industry is getting swept along in growth too.

Focus on Electrical Vehicle Development in the United Kingdom Foreshadows Progress for the Market in the United Kingdom

The market is expected to progress at a CAGR of 22.6% in the United Kingdom. Key factors driving the growth are:

• Companies, research institutions, universities, and more are concentrating on developing electric vehicles in the United Kingdom, from simple, compact road ones to bulky passenger aircraft. Thus, the market is expected to continue growing strongly in the United Kingdom.
• Farms in the United Kingdom show no signs of curbing down on the use of fertilizers, and thus, lithium compounds are getting bolstered in the country.

Rising Concerns Over Air Quality Leads to Air Purification Systems Advancing in Demand in the Country

The market is anticipated to register a CAGR of 21.7% in the United States over the forecast period. Some prominent factors driving growth are:

• With pollution rampant in the country, air quality concerns are plaguing the United States population. With the financially well-off population of the country not hesitant to spend money on lifestyle-improving products, air purification systems are seeing greater adoption in the country, in turn benefitting the market for lithium compound.
• Food & beverage sector players are striving to meet the United States of America’s substantial food needs and lithium compounds are playing their part in the fight.

Competitive Landscape in the Lithium Compound Market

Giants with reputable names in lithium compound manufacturing have made their presence known in the market. Though there is still scope to do business for small-scale players and new entrants, the big-name players control a substantial portion of the market share.

Industry players are on the lookout for new avenues of growth in the form of developing new applications for the product, especially in industrial use. Newer compounds are also being tested for their viability in replacing older compounds.

Recent Developments in the Lithium Compound Market

• In December 2022, Sigma Lithium announced it had obtained funding from Synergy Capital to expand its lithium mine in Minas Gerais, Brazil.
• In June 2022, Albemarle Corporation opened a new chemical manufacturing plant in Antofagasta, Chile. The plant was inaugurated with sustainability goals in mind, even while substantially increasing the lithium production capabilities of the company.
• In September 2022, Lithium Americas Corporation joined hands with Green Technology Metals. The deal was done with the hopes of accelerating the research projects of both parties.
• In June 2021, Ganfeng Lithium expanded its Li2CO3 product as it eyes more penetration into the electrical vehicle segment.

Key Companies in the Lithium Compound Market

• Sigma Lithium
• Albemarle Corporation.
• Bacanora Lithium
• Neometals Ltd
• Livent

Key Coverage in the Lithium Compound Industry Report

• Lithium Compound Market Share Analysis
• Lithium Compound Industry Pricing Analysis
• Lithium Compound Import & Export Coverage
• Lithium Compound Landscape in India
• Lithium Compound Supply Chain Analysis
• Opportunities Present for Investors in the Lithium Compound Market

Key Segments

By Type:

• Lithium Chloride
• Butyllithium
• Lithium Carbonate
• Lithium Hydroxide
• Lithium Concentrate
• Lithium Metal
• Others

By Application:

• Li-ion Batteries
• Glass and Glass Ceramics
• Automotive Parts
• Greases
• Metallurgy
• Polymer
• Air Treatment
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia
• East Asia
• Oceania
• Middle East and Africa (MEA)

Frequently Asked Questions

How Big is the Lithium Compound Market?

The lithium compound market size is expected to be worth USD 11.8 billion in 2024.

How Big Will the Lithium Compound Market Be in 2034?

The lithium compound market is estimated to get as big as USD 81.5 billion in 2034.

How will the Lithium Compound Market Progress in the United States?

The CAGR for the United States in the lithium compound market during the 2024 to 2034 period is estimated to be 21.7%.

What are the Segments of the Lithium Compound Market?

The lithium compound market can be divided into the following segments: type and application.

What is the Scope of the Lithium Compound Market?

The lithium compound market is expected to grow at a CAGR of 21.3% from 2024 to 2034.