The Lithium Compound Market is driven by increasing EV adoption
Key Takeaways
Key players operating in the Lithium Compound Market are focusing on capacity expansion projects to meet rising worldwide demand. For instance, in 2021, Albemarle Corporation began construction of a 50,000 metric tons per year lithium conversion facility in Hollywood, North Carolina.
The lithium compound market is witnessing growing demand from the automotive industry as electric vehicles require large lithium-ion batteries. Sales of electric cars surpassed 6 million units in 2021 and are estimated to keep rising in the coming years.
Many leading Lithium Compound Market Growth producers are expanding their operations in foreign markets to take advantage of the rapidly growing lithium demand internationally. For example, Chile-based SQM has doubled its lithium carbonate production capacity in China in 2022.
The lithium compound market in Asia Pacific is currently the largest in terms of value, driven by countries such as China, Japan, and South Korea which host a strong battery, electronics and automotive manufacturing base. These countries also have a significant number of lithium compound producers, supporting domestic demand. North America is another major market concentrated by value owing to rising EV adoption and investments in battery production facilities by leading automakers in the region. However, the market is witnessing fastest growth in the European region currently. Strong regulatory push for emission reductions, ramping up of EV infrastructure and presence of major automobile OEMs are fueling higher demand for lithium compounds in Europe. In addition, government initiatives to develop local battery supply chains through incentives and subsidies are also helping drive the European lithium compound market.
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