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The Lithium Carbonate (Li2CO3) Market size is forecast to increase by USD 3.23 billion, at a CAGR of 10.81% between 2023 and 2028.
The growth rate of the market depends on several factors, including the increasing use of lithium carbonate in numerous industries, the growing need for renewable energy storage, and the advancements in battery technology. It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historic data from 2018 - 2022, besides analyzing the current market scenario.
Lithium carbonate is a lithium salt of carbonate consisting of lithium, carbon, and oxygen elements. Lithium carbonate is a white, crystalline powder that is commonly used in industrial applications, with its primary significance in the field of energy storage, particularly in the production of lithium-ion batteries.
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One of the key factors driving the market growth is the increasing use of lithium carbonate in numerous industries. Lithium carbonate is commonly used for the production of ceramics and glass, cement and aluminum, chemical synthesis, and diversified chemicals. In addition, lithium-ion batteries are widely used in portable devices owing to their low weight, high energy-to-weight ratios, self-discharge ability, and slow loss of charge.
Moreover, the increasing use of lithium-ion batteries in portable electronic devices is driving the demand for lithium carbonate from the electronics and electrical industry. In addition, rechargeable lithium-ion batteries are widely used in electronic devices such as laptops, smartphones, and medical devices. Furthermore, lithium carbonate increases the strength of ceramic products and improves the viscosity of ceramics that are used for coating and glazing. Hence, such factors are driving the market growth during the forecast period.
A key factor shaping the market growth is the diversification of lithium sources. Traditionally, lithium has been extracted from brine deposits, which are found in salt flats or salars. In addition, brine extraction, often associated with countries like Chile and Argentina, has been a major source of lithium production. Furthermore, spodumene is a mineral containing lithium, and spodumene deposits are an alternative source of lithium.
Moreover, these hard-rock deposits are mined, and lithium is extracted through mineral processing and chemical methods. In addition, lithium can also be found in clay deposits, and exploration efforts have been directed toward lithium-rich clay sources. Hence, such factors positively impact the lithium carbonate market. Therefore, it is expected to drive the market growth during the forecast period.
Shortage of EV charging stations is one of the key challenges hindering market growth. The use of these batteries in EVs is rapidly increasing. However, there is a lack of charging stations, which is one of the factors that negatively impact the lithium carbonate (Li2CO3) market growth. Furthermore, EV owners are facing a challenge in finding suitable recharging facilities.
Moreover, unlike conventional vehicles, there are no standardized recharging facilities for EVs. In addition, public awareness and campaigns to encourage the adoption of Evs are required to increase the sales of Evs. Furthermore, the focus on developing and providing better-charging infrastructure is low. Hence, such factors are hindering the market growth during the forecast period.
The batteries segment is estimated to witness significant growth during the forecast period. Lithium carbonate is increasingly used for the production of cathode materials for lithium-ion batteries. In addition, lithium carbonate with 99.9% lithium content is considered EV-grade lithium carbonate. Furthermore, lithium carbonate with a purity of 99.5% is considered standard battery-grade lithium carbonate.
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The batteries segment was the largest segment and was valued at USD 1.90 billion in 2018. Moreover, lithium carbonate has good electrochemical inertness, which is best suited for manufacturing the protective layer of cathodes for lithium-ion batteries. In addition, lithium carbonate-based lithium-ion batteries are used in EVs, energy grid storage batteries, and consumer electronics. Furthermore, lithium carbonate is also used to manufacture lithium cobalt oxide batteries, which offer stable capacities and high specific energy. In addition, these characteristics of lithium cobalt oxide batteries make them ideal for use in smartphones, laptops, and digital cameras. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the distribution channel, the market has been segmented into direct sale and indirect sale. The direct sale segment will account for the largest share of this segment. Direct sales segment of lithium carbonate can eliminate the requirement for intermediaries, such as distributors or middlemen, which may reduce overall transaction costs. In addition, this cost efficiency can be beneficial for both producers and buyers, potentially leading to more competitive pricing. Moreover, by selling directly to end-users or downstream manufacturers, lithium carbonate producers may capture a larger share of the profit margin that would otherwise be distributed among various intermediaries in a traditional supply chain. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
APAC is estimated to contribute 72% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The growing adoption of EVs in countries such as China and India has led to an increasing demand for lithium carbonate. In addition, countries in the APAC region, such as Indonesia and India, have been investing heavily in renewable energy sources such as solar and wind. Moreover, lithium-ion batteries are used for energy storage in renewable energy projects, contributing to the demand for lithium carbonate. For example, in January 2024, the Ministry of New and Renewable Energy of India announced around 13.5 GW of renewable energy capacity installed, with an expenditure of around USD10 billion, and is ranked fourth internationally in renewable energy installed capacity, fourth in wind power capacity, and fifth in solar power capacity. Furthermore, APAC countries, especially China and South Korea, have become key players in the global battery manufacturing industry. In addition, the presence of major battery manufacturers has driven the demand for lithium carbonate as a raw material for battery production. Hence, such factors are driving the market growth in APAC during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Albemarle Corp: The company offers lithium carbonate used as raw material for the glass, ceramics and enamel industries; basis material for the manufacture of other lithium compounds; and catalyst for esterification.
The report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Arcadium Lithium, Ascend Elements Inc., Axiom Chemicals Pvt. Ltd., BassTech International, Bisley and Co. Pty. Ltd., Celtic Chemicals Ltd., E3 Lithium Ltd., Eramet, Ganfeng Lithium Group Co. Ltd., GFS Chemicals Inc., HELM AG, JIGCHEM UNIVERSAL, Lakshita Chemicals, Lepidico Ltd., Merck KGaA, Neometals Ltd., Noah Chemicals, Orocobre Ltd., Sociedad Quimica y Minera de Chile SA, Stellantis NV, Targray Technology International Inc., Tianqi Lithium Corp., and ZIJIN MINING GROUP CO. LTD.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report predicts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
This market is experiencing significant growth driven by the expanding demand for lithium in various applications. Electric vehicles (EVs) and energy storage systems are major contributors, with governments worldwide implementing emissions regulations and incentives to accelerate EV adoption. Lithium's role in energy storage for renewable sources enhances grid stability and supports electrification efforts in the aerospace, marine, and robotics industries. The market also caters to grid-scale energy storage, facilitating large-scale battery installations to address intermittent energy generation challenges. In aerospace and aviation, lithium is crucial for electric aircraft, drones, space exploration missions, and satellite technologies. Additionally, lithium finds applications in portable electronics and wearable technology, reflecting its versatility across diverse industries.
Lithium Carbonate Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.81% |
Market Growth 2024-2028 |
USD 3.23 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
10.33 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 72% |
Key countries |
US, China, South Korea, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Albemarle Corp., Arcadium Lithium, Ascend Elements Inc., Axiom Chemicals Pvt. Ltd., BassTech International, Bisley and Co. Pty. Ltd., Celtic Chemicals Ltd., E3 Lithium Ltd., Eramet, Ganfeng Lithium Group Co. Ltd., GFS Chemicals Inc., HELM AG, JIGCHEM UNIVERSAL, Lakshita Chemicals, Lepidico Ltd., Merck KGaA, Neometals Ltd., Noah Chemicals, Orocobre Ltd., Sociedad Quimica y Minera de Chile SA, Stellantis NV, Targray Technology International Inc., Tianqi Lithium Corp., and ZIJIN MINING GROUP CO. LTD. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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