Global Lithium Chloride Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Lithium Chloride Market Research Report 2023-Competitive Analysis, Status and Outlook by Type, Downstream Industry, and Geography, Forecast to 2029

Global Lithium Chloride Market is segmented on the basis of type as Lithium Chloride Hydrate and Anhydrous Lithium Chloride. A chemical compound that is formed after it is treated with hydrochloric acid is known as lithium chloride. It holds LiCl as its chemical formula. It is recognized for its unique property of exceptional solubility in polar solvents. Besides, it also holds hygroscopic properties.

Market Overview:

The latest research study on the global Lithium Chloride market finds that the global Lithium Chloride market reached a value of USD 905.9 million in 2022. It’s expected that the market will achieve USD 1520.96 million by 2028, exhibiting a CAGR of 9.02% during the forecast period.

Electric Vehicles to Drive the Market Growth

Lithium Chloride (LiCl) is a typical ionic compound with low toxicity. It's the raw material of lithium metal, battery material, and Chitin. For the foreseeable future, lithium-ion will be the leading technology in the electric vehicle (EV) industry. With the surging fuel prices across the world and increasing pollution levels in the environment, many countries across the globe have started investing in lithium-ion technology which is used as a substitute for conventional fuel vehicles in the market. With lesser manufacturing costs and high-performance delivery, lithium batteries are considered to be the best choice in modern electric vehicles. The automobile industry is quickly evolving, pushing companies to cope with new issues on a regular basis. Electric vehicle demand is growing throughout the world, while buyers also desire automobiles with greater customization possibilities. EV sales have exploded, with increases in all three major car markets: China, the United States, and Europe. Despite the disruption created by Covid-19, the EV market has been able to thrive, displaying its resilience. This has been aided by political incentives. In the United States, for example, President Joe Biden announced a USD 174 million investment to encourage electric car adoption, from charging infrastructure to boosting the federal tax credit, as well as his proposed new objective of 50% electrification by 2030. All the above-said factors are expected to increase the demand for Lithium Chloride in the electric vehicles segment.

Increase in demand from downstream market

An increase in demand for lithium chloride in the automobile industry is a key factor driving the global lithium chloride market. Lithium chloride is used in battery applications of automobiles. The recent trend of electrification of automobiles across the globe is anticipated to drive the global lithium chloride market. The rise in demand for mobile devices and tools which use lithium batteries is also estimated to propel the global lithium chloride market. Battery performance, cost, and safety are the key factors that manufacturers focus on. They prefer lithium chloride for achieving these. Increase in demand for the Sales of lithium metal is also anticipated to fuel the lithium chloride market as it is used as feed material. Lithium chloride serves as an electrolyte in the reprocessing of nuclear fuel. Advancements in electrification and transportation are anticipated to drive the global lithium chloride market. Development in the biomedical sector is expected to offer promising opportunities to the lithium chloride market, as it is used for the extraction of RNA.

Fierce competition

There are a large number of lithium chloride suppliers around the world with roughly the same level of competitiveness, which will affect the bargaining power of major players in the industry and require more research and development to form a unique competitive advantage. And many suppliers have rich experience in the field of lithium chloride and have a strong brand image, which will raise the barriers to entry for the industry and limit the number of new entrants. Moreover, the presence of numerous players that offers lithium chloride at lower prices to attract price-sensitive customers poses a significant threat to the market. Despite steady sales, the market for lithium chloride has failed to achieve its full potential owing to competitive pricing strategies applied by regional players. This has posed a challenge to revenue growth which in turn is negatively impacting the market.

Region Overview:

In global comparison, a significant portion of the revenue was generated in East Asia (55.18% in 2022).

Company Overview:

Jiangxi Ganfeng Lithium is one of the major players operating in the Lithium Chloride market, holding a share of 31.34% in 2022.

Jiangxi Ganfeng Lithium

Jiangxi Ganfeng Lithiums business runs through the entire industrial chain of resource mining, refining and processing, battery manufacturing and recycling, and its products are widely used in electric vehicles, energy storage, 3C products, chemicals and pharmaceuticals. The Group's lithium ore resources are all over the world, and it has industrialized technologies of extraction of lithium from brine, extraction of lithium from ore and extraction of lithium from recycling; the Sales of lithium compounds and lithium metal is sufficient, and there are many Sales bases at home and abroad; it has a complete battery manufacturing and recycling technology, providing sustainable value-added solutions for battery manufacturers and electric vehicle manufacturers.

Albemarle Corp

With a history that extends back to 1887, todays Albemarle is a leading global producer of Lithium, Bromine and Catalyst solutions. Albemarle Corporation, headquartered in Charlotte, NC, is a global specialty chemicals company with leading positions in lithium, bromine and refining catalysts. Albemarle Corp powers the potential of companies in many of the world's largest and most critical industries, from energy and communications to transportation and electronics. Albemarle employs approximately 5,600 people and serves customers in approximately 100 countries.

Segmentation Overview:

As for product types, the Anhydrous Lithium Chloride segment held the largest market share in 2021.

Lithium Chloride Hydrate

Lithium Chloride Hydrate is an excellent water soluble crystalline Lithium source for uses compatible with Chlorides. Lithium Chloride Hydrate is generally immediately available in most volumes. Chloride compounds can conduct electricity when fused or dissolved in water.

Anhydrous Lithium Chloride

Anhydrous lithium chloride is an important lithium salt product, besides being used in air conditioning dehumidifiers, bleaching powder, insecticides, synthetic fibers, pharmaceutical industry, lithium batteries, metal alloy solder or flux, there is a very important use for the Sales of lithium metal.

Application Overview:

The market's largest segment by application is the segment Industry, with a market share of 38.33% in 2022.

Key Companies in the global Lithium Chloride market covered in Chapter 3:

Huizhi Lithium Energy
Leverton-Clarke
Brivo Lithium
Albemarle Corp
Tianqi Lithium
Lithium salt of Xinghua
Tiantie
FMC Corp
SQM
Jiangxi Ganfeng Lithium

In Chapter 4 and Chapter 14.2, on the basis of types, the Lithium Chloride market from 2018 to 2029 is primarily split into:

Lithium Chloride Hydrate
Anhydrous Lithium Chloride

In Chapter 5 and Chapter 14.3, on the basis of Downstream Industry, the Lithium Chloride market from 2018 to 2029 covers:

Medical
Industry
Electronics
Automotive
Other

Geographically, the detailed analysis of consumption, revenue, market share and growth rate, historic and forecast (2018-2029) of the following regions are covered in Chapter 8 to Chapter 14:

North America (United States, Canada)
Europe (Germany, UK, France, Italy, Spain, Russia, Netherlands, Turkey, Switzerland, Sweden)
Asia Pacific (China, Japan, South Korea, Australia, India, Indonesia, Philippines, Malaysia)
Latin America (Brazil, Mexico, Argentina)
Middle East & Africa (Saudi Arabia, UAE, Egypt, South Africa)