Switch to Electric Vehicles from Traditional Fuel Vehicles to Drive Growth of Lithium Compounds Market
Lithium-ion batteries are preferred by the automobile industry due to their high energy density, low self-discharge rate, long life cycle, low maintenance, fast charging, and low weight which is projected to drive market growth in the near future. The automotive industry is predicted to increase significantly during the forecast period, owing to enhanced government regulations for ICE automakers to reduce carbon dioxide emissions from automobiles. Moreover, to reduce the usage of fuels the demand for electric vehicles is projected to increase. Hence, automakers' focus has shifted to creating electric vehicles, which is likely to increase demand for lithium and related components. For instance, according to the IEA (International Energy Agency), in 2021, the global electric car sales doubled to 6.6 million units, accounting for nearly 9% of the global car market, compared to more than 3 million units in 2020 and accounting for 4.1% of total car sales.
Government incentives and investments in the electric car sector are expected to promote the market's growth. With the rising production of electric vehicles across the globe, the key players in the market are concentrating on gaining control of the battery supply chain. In addition, to the growing popularity of electric vehicles, BMW Group announced an arrangement with Ganfeng Lithium, a Chinese lithium extraction business, to supply LiOH for battery cells. BMW wants to produce 25 electrified cars with lithium-ion batteries as public awareness of the need for ecologically friendly vehicles rises.
In India, Southeast Asia, and South Korea, hybrid vehicle sales and demand have increased significantly which is projected to drive the lithium compounds market growth in the coming years. In July 2020, Khanij Bidesh India Ltd. (KABIL), a joint venture involving NALCO, Mineral Exploration, and Hindustan Copper, has inked an agreement with Jujuy Energia y Mineria Sociedad del Estado for lithium production and exploration (JEMSE). This deal was in line with India's efforts to develop a battery supply chain in order to satisfy the country's EV goals. Furthermore, the growing number of electric vehicles on the road and the increased use of gadgets and robots in emerging countries are pushing the demand for rechargeable batteries, which will propel the lithium compounds market forward in the next years.
Increasing Demand from Medical Industry to enhance Lithium Carbonate Growth
The lithium carbonate category is projected to account for the greatest share of the lithium compounds market in the coming years. Lithium carbonate is a lithium salt of carbonate that is commonly utilized in metal oxide processing. It is the first lithium compound recovered from brines and the first compound in the manufacturing chain; it serves as a precursor to other lithium derivatives. Glass and ceramics, aluminum manufacturing, medicines, and Li-ion batteries are just a few of the applications for lithium carbonate. It's also used to lower the melting point of ovenware glass made of silica. It is used to provide color and luster in ceramics. During the projected period, increased demand for lithium carbonate from the Li-ion battery industry is expected to boost the market.
Increasing Demand for Li-ion Battery to Drive Growth of Asia Pacific Lithium Compounds Market
With the highly developed electronics, automotive, ceramics, and glass industries in China, India, Japan, and Korea, as well as continuing investments in the region to improve the battery technology sector over the years, Asia-Pacific is likely to dominate the global lithium compounds market in the coming years. To preserve and use energy, lithium compounds have been widely used in lithium-ion rechargeable battery technology. Lithium-ion batteries are used in a variety of electronic devices, including cell phones, cameras, laptops, power equipment, and automobiles.
Another factor driving the growth of the Asia-Pacific lithium compounds market is major companies increased strategic investments in the creation of these lithium compound-based goods in order to expand their market presence in various sectors. For longer usage hours, people are drawn to mobile phones with large-capacity batteries. For instance, according to China's National Bureau of Statistics, the country produced more than one billion mobile phones in 2019. Due to domestic and export demand, the output is likely to increase further.
Moreover, North America is expected to grow at a significant rate. U.S. is the second-largest producer of batteries, making it one of the world's most important lithium consumers. This valuable metal is abundant in the country. Lithium resources from brines and minerals accounted for 7.9 million tonnes in the United States in 2020, according to the USGS. However, the country only mines roughly 1% of the global need. For instance, in 2020, only one location in the United States, a brine plant in Nevada, produced the product.
Global Lithium Compounds Market: Competitive Landscape
Companies in the market are introducing new products alongside initiation collaborations, alliances and partnership agreements. For instance, in June 2021, Lithium Nevada Corporation's proposed Thacker Pass Mine was approved by the Bureau of Land Management. The mine is planned to generate roughly 60 kilotons of battery-grade carbonate by 2026, making it the largest source of commodity supply in the United States. On the other hand, Contemporary Amperex Technology Co. Limited and Shenzhen KSTAR Science & Technology have teamed up to build a lithium-ion battery manufacturing facility in Fujian, China.
A few of the players in the lithium compounds market include Sociedad Quimica y Minera de Chile S.A. (SQM) (Chile), Livent Corporation (US), Shanghai China Lithium Industrial Company Limited (China), Nemaska Lithium Inc. (Canada), Bacanora Lithium (United Kingdom), Lithium Americas (Canada), Galaxy Resources Limited (Australia), Orocobre Limited (Australia), Albemarle Corporation (US), Tianqi Lithium Industries Inc. (China), Ganfeng Lithium Company Limited (China), China Lithium Products Technology Company Limited (China), Sichuan Ni&Co Guorun New Materials Company Limited (China), Shandong Ruifu Lithium Industry Company Limited (China), Neo Lithium Corporation (Canada), Millennial Lithium Corporation (Canada), among others.
Regional Classification of the Global Lithium Compounds Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Lithium Compounds Market
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