Lithium Carbonate Market

Lithium Carbonate Market Outlook (2024 to 2034)

As opined in the recently updated market analysis by Fact.MR, the global lithium carbonate market is estimated to reach US$ 9.69 billion in 2024 and is further forecasted to advance at a CAGR of 11.1% to reach a value of US$ 27.75 billion by the end of 2034.

The inorganic chemical lithium carbonate (Li2CO3) is the lithium salt of carbonic acid. Processing metal oxides is one of the common uses for this white salt. Due to its effectiveness in treating mood disorders including bipolar disorder, it is listed as one of the essential medicines by the World Health Organization (WHO). In addition to reducing the frequency of manic episodes, continuous use of this medication also minimizes their symptoms, which include irritability, anxiety, rapid/loud speech, hostile/aggressive behaviors, exaggerated feelings of well-being, and feelings that harm a person.

Key Market Growth Drivers

• The global lithium carbonate market growth is attributed to the ongoing transition towards electric vehicles. The demand for lithium-ion batteries is increasing as governments throughout the world enact stronger emission restrictions and offer incentives for the use of electric vehicles. As a vital ingredient in the manufacturing of batteries, lithium carbonate, would become more in demand. In areas where EV sales are already high, such as China, Europe, and the United States, the growth potential is especially noteworthy.
• Energy storage systems that are effective are necessary for the grid to include renewable energy sources such as wind and solar electricity. Due to its scalability and high energy density, lithium-ion batteries are used as a prominent technology in this sector.
• Energy storage systems will become as long as renewable energy sources account for a larger portion of electricity production. The market for lithium carbonate is contributing to the expansion of the energy storage industry since this material is essential to the production of lithium-ion batteries, which are utilized in large-scale energy storage solutions.
• Lithium carbonate has great growth prospects in industrial applications and electrification efforts outside of electric vehicles and energy storage. The lithium carbonate market size is expanding because of the growing use of lithium-ion batteries by several sectors including robotics, aerospace, and marine for their power requirements. The electrification of several industries, including public transit, commercial vehicles, and construction equipment, is also presenting lucrative opportunities for market players.

Report Attribute	Detail
Lithium Carbonate Market Size (2024E)	US$ 9.69 Billion
Forecasted Market Value (2034F)	US$ 27.75 Billion
Global Market Growth Rate (2024 to 2034)	11.1% CAGR
Market Share of Pharmaceuticals (2034F)	48.9%
Japan Market Growth Rate (2024 to 2034)	11.3% CAGR
East Asia Market Share (2034F)	24.6%
Key Companies Profiled	LevertonHELM Limited; Ganfeng Lithium Co., Ltd.; Orocobre Limited Pvt Ltd,; Shandong Ruifu Lithium Co., Ltd.,; SQM S.A.,; Targray,; Tianqi Lithium; Albemarle Corp.; SQM S.A.; Tianqi Lithium Corporation; Livent Corp.; Lithium Americas Corp.; Pilbara Minerals; Mineral Resources Group Co., Ltd.

What is Favoring the Growth of the Lithium Carbonate Market?

“Accelerating Use of Lithium Batteries in Smartphones and Laptops”

The market for lithium carbonate is expanding at a remarkable rate. Due to the need for large quantities of lithium carbonate in electric vehicles, including plug-in hybrid electric vehicles (PHEVs), battery electric vehicles (BEVs), and hybrid electric vehicles (HEVs), the automotive industry is credited with being the primary driver of the market. Lithium carbonate is utilized in the production of batteries used in modern gadgets such as smartphones and laptops. However, as compared to the automobile industry, the amount used in electronic equipment is far lower.

Electrification is being investigated by the aerospace and defense sectors as a way to cut emissions and increase energy efficiency, thus setting lithium carbonate market trends. Systems with lightweight and high-performance batteries are needed for electric aircraft, drones, and other aerospace applications. In these applications, obtaining practical electric propulsion is contingent upon the utilization of lithium-ion batteries, made possible by lithium carbonate. The need for lithium carbonate in the defense and electric aircraft industries is growing as these fields continue to progress.

Which Primary Obstacles are Encountered by Market Players Across the Globe?

“Imbalance in Supply-Demand of Lithium Carbonate”

Lithium carbonate is in high demand due to the rise of electric cars and energy storage technologies. There is a supply-demand mismatch as a result of the lithium manufacturers’ inability to meet the demand. Two of the most important issues facing the sector are increasing the capacity for producing lithium and finding trustworthy sources of the metal.

Lithium carbonate has seen a considerable amount of price volatility. The profitability of lithium producers, battery manufacturers, and other industry participants is impacted by fluctuations in lithium pricing. Price volatility is caused by several factors, including supply limitations, geopolitical concerns, and market speculation. As a result, stakeholders are finding it difficult to plan and make long-term business decisions.

Country-wise Insights

Fact.MR, a market research and competitive intelligence provider, through its updated analysis, stated that North America is approximated to capture a share of 21.6% of the lithium carbonate market share in 2024. The market has reopened in a few regions such as Europe and East Asia, but the demand for lithium carbonate has not seen a significant rise.

Which Factors are Leading to Consistent Increase in the Demand for Lithium Carbonate in the United States?

“Surging Use of Lithium-Ion Batteries as Effective and Lasting Energy Source in Vehicles”

Attribute	United States
Market Value (2024E)	US$ 1.5 Billion
Growth Rate (2024 to 2034)	9.1% CAGR
Projected Value (2034F)	US$ 3.57 Billion

The United States is analyzed to hold 73.5% market share of the North American region by the end of 2034. As the United States grows more dependent on renewable energy sources such as wind and solar energy, there is a rising need for effective energy storage options. The usage of lithium carbonate in lithium-ion batteries is essential for maintaining grid stability and storing renewable energy. The need for lithium carbonate is rising because of the upgrading of the American electrical grid, which is placing a strong emphasis on integrating renewable energy sources.

This is creating a need for large-scale battery storage systems. Several lithium-ion battery manufacturers are offering products with more efficient, long-lasting, and high-storage features due to research and development going on in battery technology. There is a greater need for premium lithium carbonate owing to these developments. The market for lithium carbonate is growing due to lithium-ion batteries' rising use in areas other than electric vehicles and renewable energy storage, such as consumer electronics, portable power tools, and even aircraft.

How will Japan Become an Invest Worthy Market for Lithium Carbonate Manufacturers?

“Car Manufacturers Increasing Production of Electric Vehicles”

Attribute	Japan
Market Value (2024E)	US$ 676.2 Million
Growth Rate (2024 to 2034)	11.3% CAGR
Projected Value (2034F)	US$ 1.97 Billion

Japan is calculated to account for a 31.3% share of the East Asian market in 2024. As part of its effort to cut carbon emissions, Japan is moving more quickly toward electric automobiles. The demand for lithium carbonate, a vital component of the lithium-ion batteries used in Electric Vehicles (EVs), is rising as a result of government initiatives to promote the use of these vehicles in the country. Several automakers in Japan, including Nissan, Honda, and Toyota, are increasing the number of electric and hybrid vehicles they produce. This will result in a notable increase in the demand for lithium carbonate.

Category-wise Insights

The market for lithium carbonate is categorized by grades and application. In terms of grade, it consists of three segments, high purity, battery, and pharmaceuticals. The pharmaceutical segment is expected to capture a market share of 48.8% in 2024. By application, the market is divided into lithium batteries, glass & ceramics, cement manufacturing, aluminum production, and pharmaceutical industry. With a significant share of 21.6%, the glass and ceramics segment is forecasted to lead in 2024.

Why Lithium Carbonate is Highly Preferred for Pharmaceutical Purposes?

“Used in Treatment of Several Cognitive Issues”

Attribute	Pharmaceuticals
Segment Value (2024E)	US$ 4.73 Billion
Growth Rate (2024 to 2034)	11.1% CAGR
Projected Value (2034F)	US$ 13.57 Billion

Bipolar disorder patients are frequently treated with lithium carbonate as a mood stabilizer. It's a key component in treating mental illness since it reduces the intensity and frequency of mood swings, especially manic cycles. With decades of proven efficacy under its belt, lithium is a substance that is widely utilized. It is still among the most effective therapies for bipolar disorder patients to stabilize mood and avoid manic and depressed episodes.

Apart from pharmaceuticals, lithium carbonate is also used in the healthcare sector. Electronic medical gadgets, such as wearable health monitors, implanted devices, and portable diagnostic tools, are essential to the healthcare industry. Lithium-ion batteries are a great option since these gadgets frequently need small, light, and dependable power sources. Lithium carbonate is becoming popular in medical devices and healthcare applications as the healthcare sector continues to use digital technologies.

Which Application is Contributing Immensely to the Market Expansion of Lithium Carbonate?

“Lithium Carbonate Added to Glass Compositions for Improving Material's Overall Strength & Durability”

Attribute	Glass & Ceramics
Market Value (2024E)	US$ 2.09 Billion
Growth Rate (2024 to 2034)	11.2% CAGR
Projected Value (2034F)	US$ 6.02 Billion

There is a significant use of lithium carbonate in the making of glass & ceramics which is projected to occupy a share of 21.7% of the global market by 2034. Glass compositions are enhanced with lithium carbonate to increase the material's overall strength and durability. This is especially crucial for applications such as cooktops, ovenware, and high-performance windows where the glass must endure mechanical or thermal stress. Lithium carbonate's capacity to reduce the melting point of the glass mixture is one of its main advantages in the glass-making process.

Competitive Landscape

Key players in the lithium carbonate market are making investments in the development of lithium carbonate. To serve a broad client base, they are focusing on using merger and acquisition tactics to increase geographic reach. Producers of lithium carbonate reported consistent growth in manufacturing with the growing demand for electric vehicles.

• Arcadium Lithium was formed via the all-stock combination of Allkem and Livent in January 2024. This merger is a calculated strategic decision to increase the scope of suppliers and production while utilizing the current resources. With a vertically integrated company model and an emphasis on improving operational predictability and flexibility while cutting costs, Arcadium focuses on highly complementary assets.
• October 2023: Under the terms of the second tranche subscription agreement, General Motors Holdings LLC (GM) would pay USD 329.85 million for shares of Lithium Americas (NewCo). Under the terms of this agreement, GM will be the sole producer of lithium compounds, such as lithium carbonate, at Thacker Pass for ten years, with 100% exclusive rights.
• A long-term strategic agreement was announced in May 2023 between SQM SA and Ford Motor Company to supply high-quality battery-grade lithium carbonate, a necessary ingredient for the production of high-performance electric vehicle batteries.

Fact.MR provides detailed information about the price points of key players in the lithium carbonate market positioned across the world, sales growth, production capacity, and speculative technological expansion, in this updated market report.

Segmentation of Lithium Carbonate Market Research

• By Purity :

  • 98.5% to 99.4%
  • 99.5% to 99.8%
  • 99.9%

• By Grade :

  • High Purity
  • Battery
  • Pharmaceutical

• By Application :

  • Li-ion batteries
  • Glass & Ceramics
  • Cement Manufacturing
  • Aluminum Production
  • Pharmaceuticals

• By Region :

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • East Asia
  • South Asia & Pacific
  • MEA