The lithium compounds market is expected to register a CAGR of greater than 8% during the forecast period. Rising demand for lithium compounds for ceramics and glass in production, to increase the strength of ceramics, and the growing need for energy-saving devices are driving the market growth. The high costs of compounds and replacement by other substitutes are expected to hinder the market growth.
Key Market Trends
Growing Demand for Batteries
- Lithium compounds have been majorly used in lithium-ion rechargeable battery technologies to save and consume energy. Lithium-ion batteries find their applications in electronics, such as mobile phones, cameras, laptops, power tools, and vehicles.
- Lithium-ion batteries play a major role in vehicles, both in combustion and electric automobiles. The automotive industry prefers lithium-ion batteries due to their properties, such as high energy density, low self-discharge rate, long life cycle, low maintenance, fast charging, and low weight.
- The demand for Ni-Cd batteries is also high, as they are currently used in some hybrid electric vehicles. The sales of and demand for hybrid vehicles in India, Southeast Asia, and South Korea have witnessed decent growth compared to the previous years.
- According to Consumer Electronics (CE), the consumption of electronics in every region is increasing due to continuous investments in electronic technology.
- Rising number of electric vehicles and the increasing usage of electronics and robots in developing countries are driving the demand for rechargeable batteries, which may drive the market for lithium batteries through the coming years.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the overall lithium compounds market, owing to the highly developed electronics, automotive, ceramics, and glass sectors in China, India, Japan, and Korea, coupled with the continuous investments done in the region to advance the battery technology sector through the years.
- Moreover, the glass and ceramics industries are still major consumers of lithium compounds, as these compounds increase the lifespan of products, and provide greater surface tension, resistance to thermal shock, and increased mechanical strength to ceramics.
- According to the World Ceramic and Glass Magazine, China leads the consumption of ceramic tiles and glass, followed by India, in the global scenario.
- There was increasing production of electric and hybrid vehicles in China and India in recent years, due to government regulations on combustion engines and high taxes on combustion vehicles in China.
- People are being attracted to heavy capacity batteries in mobile phones for longer usage times. According to the National Bureau of Statistics of China, the production of mobile phones in China was more than one billion in 2019. The production is expected to grow further, owing to the domestic and export demand.
- The growing need for high-efficiency batteries requires advanced technological improvements in lithium compounds. Continuous growth in energy-saving devices is expected to drive the market for lithium compounds through the coming years.
The lithium compounds market is partially consolidated in nature, with a few major players dominating a significant portion of the market. Some of the major companies are FMC Corporation, Sociedad Química y Minera (Sociedad Química y Minera de Chile), Lithium Americas Corp., Albemarle Corporation, and Neometals Ltd.
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