Lithium Chloride Market

Lithium Chloride Market Outlook (2023-2033)

The global lithium chloride market holds a valuation of US$ 1.2 billion in 2022 and with increasing demand in battery production, the market is expected to inflate at CAGR 6.3% by end of the forecast period.

Lithium chloride is ionic salt used as a dehumidifying agent in air conditioners. It has an excellent moisture absorption effect and can absorb 1000 times its mass, even in extremely low environmental conditions. Lithium chloride is derived from the chemical reaction between lithium carbonate and hydrochloric acid. Lithium’s high energy content makes it a suitable chemical for the production of many chemical compounds and its demand is increasing constantly, especially for Li-ion battery production.

Report Attributes	Details
Market Size (2022A)	US$ 1.2 Billion
Estimated Market Value (2023E)	US$ 1.3 Billion
Forecasted Market Value (2033F)	US$ 2.3 Billion
Global Market Growth Rate (2023-2033)	~6.3% CAGR
North America Market Share (2023)	~17.2%
North America Growth Rate (2023-2033)	~5.2% CAGR
US Growth Rate (2023-2033)	~5.5% CAGR
Market Share of Top 5 Companies	~55.1%
Key Companies Profiled	Albemarle FENGCHEN GROUP CO., LTD Ganfeng Lithium Harshil Industries Hefei TNJ Chemical Industry Co., Ltd. Leverton Mody Chemi Pharma Ltd. Muby Chemicals Nippon Chemical Industrial Otto Chemie Pvt Ltd Sontara Organo Industries TCI Chemical Others

Global Lithium Chloride Market Historical Outlook (2018-2022) vs. Forecast Outlook (2023-2033)

With the increasing energy crisis and changing environmental conditions, the demand for humidity-independent control air-conditioning systems has gained the attraction of many end users. Additionally, lithium chloride is also used in metal working as brazing flux to protect the metal surface from oxidation. Urbanization and infrastructure development across various end-use have increased the demand the batteries that would ultimately require lithium chloride for the production process. Thus, driving the sales of lithium chloride.

Conventionally, batteries were produced from fossil-based components but owing to new technologies, the shift is towards the use of lithium chloride for battery production.

On account of escalating consumption of lithium chloride, the global market is anticipated to generate a revenue of US$ 2.3 billion by 2033-ending, with a CAGR of 6.3%.

• Short Term (2022 to 2026): With a shift from fuel-based automobiles to electric vehicles the demand for batteries increases. Lithium chloride is primarily used for the production of batteries and the market is expected to experience aggressive growth with surging electric vehicle demand.
• Medium Term (2026-2029): The demand for electronics has multiplied over the years. The battery is the most important component for the functioning of electronics, thus demand for increased production of lithium chloride for battery manufacturing.
• Long Term (2029-2033): Increasing consumption of metals in the broadening construction industry complements the requirement for lithium chloride. It is heavily used as brazing flux in metalworking production. The demand is expected to heighten in the forecast period.

The historical analysis of the global lithium chloride market indicates the market growth rate was 3.6% from 2018 -2022 and is further expected to grow by 6.3% between 2023 to 2033, according to the Fact.MR analysis

The above image illustrates the overall market share analysis of the lithium chloride market based on region and application. Under the by-application segment, batteries production would dominate with a 55.6% market share in 2023.

“Expanding Automotive Industry Demands for Increased Lithium Chloride for Battery Production”

One of the main factors propelling the worldwide lithium chloride market is the rise in demand for lithium chloride in the automotive industry. The recent global trend of electrifying vehicles is projected to propel the market for lithium chloride.

• The global lithium-ion battery market is valued at US$ 46.4 billion in 2022 and is expected to reach US$ 91.9 billion by 2030. Lithium chloride is essentially used for battery production to be used in various industries such as automotive, consumer electronics, and many others.

The development of transportation and electricity systems is predicted to propel the worldwide lithium chloride market. Additionally, a government-subsidized program for the manufacturing & purchase of electric vehicles has boosted the overall demand in the EV industry. The major consumer of lithium-ion batteries is the automotive sector; lithium chloride is used for the production of electric vehicle batteries.

• The size of the global electric vehicles is approximately US$ 411.0 billion in 2022 and is expected to inflate at a 10.1% growth rate.

“Soaring Metal Industry Surges the Demand for Brazing Flux Agent: Supplement Market’s Growth”

The market for lithium chloride is expected to be stimulated by an increase in demand for the manufacturing of lithium metal, which is utilized as feedstock. Also, lithium chloride is used in metal workings production as a brazing agent that helps to prevent oxidation of metal surfaces while adding with other metals at high temperatures. Lithium chloride is used for soldering techniques, dip brazing, and others.

The global demand for metal infrastructure has increased in the interest of expanding the construction industry that required ferrous & nonferrous metals for laying the foundation of the infrastructure.

• The global construction industry is to be valued at ~US$ 14.4 trillion with expanding population & urbanization in 2030.

“High Purification Cost Accompanied by the High Environmental Emission”

The pure lithium chloride production method involves the purification of natural impure lithium chloride. The natural impure contains many impurities such as boron, magnesium, and sulfate that hinder the performance of pure lithium metal production. Thus, to obtain pure lithium chloride further processing is required which adds to the extra overall cost of lithium chloride production.

Additionally, the environmental impact of the production and utilization of lithium chloride is not positive. It badly affects the environmental condition if disposed of into the water stream. Also, the chemical is very dangerous for human exposure. It might cause eye irritation, and respiratory diseases and develop cancer after prolonged exposure.

Country-wise Insights

Why China is a Major Lithium Chloride Consumer?

The market in China is expected to witness robust growth during the forecast period. China accounts for more than 30% of automotive production. China outlays a global platform for manufacturing units of electric vehicles, by providing land, labor, and resources. Majorly China holds approximately 80.0% share in global lithium-ion battery production. Thus, the demand for lithium chloride is maximum in China owing to consumption.

Utilization of lithium chloride in China generated revenue of over US$ 0.3 billion in 2022 and holds approximately 25.0% share in the global market.

What Role Does the US Play in the Global Lithium Chloride Market?

The US is the world’s leading technology innovator supported by the established infrastructure. The US is the home of electric vehicles and holds the second position in lithium-ion battery production after China. As battery production expands owing to the adoption of the electric vehicle, the demand for lithium chloride is expected to surge rapidly.

The usage of lithium chloride in the US market generates revenue of US$ 0.2 billion in 2022 and the market is expected to inflate by 5.5% by the end of the forecast period.

Category-wise Insights

Why Solid Form of Lithium Chloride is Maximum Utilized Globally?

Lithium chloride is widely used as a dehumidifier in air conditioners. The purpose of dehumidifiers is to absorb moisture from the atmosphere. Thus, the solid form of lithium chloride is suitable for application. Also, there are specific functions of solid forms, such as bactericide, brazing flux, and others, and liquid form is quite efficient for this functioning.

The consumption of lithium chloride in solid form is anticipated to propel at a growth rate of 6.5% by end of the forecast period.

Which Battery Production is Poised to Show Maximum Utilization of Lithium Chloride Globally?

Owing to the rapid expansion of the automotive industry, lithium chloride is to be used for the production of batteries to be utilized in electric vehicles. Also, the demand for lithium-ion batteries is generated by the electronic industry with rising requirements of electronics post-pandemic.

Thus, the consumption of lithium chloride in batteries production generated revenue of US$ 0.70 billion in 2022

Manufacturers Key Strategies

Leading manufacturers of lithium chloride are Albemarle, FENGCHEN GROUP CO., LT, Ganfeng Lithium, Harshil Industries, Hefei TNJ Chemical Industry Co., Ltd, Leverton, Mody Chemi Pharma Ltd., Muby Chemicals, Nippon Chemical Industrial, Otto Chemie Pvt Ltd, Sontara Organo Industries, TCI Chemical, others.

The global market for lithium chloride requires constant improvement in pricing strategies, as current production is very costly. In the account of, the increasing demand for lithium chloride for battery production, the manufacturers are looking towards forward integration to suffice the raw material demand & supply gap in the market. Also, investment in sustainable production methodologies is been done by leading manufacturers to align with environmental protection guidelines.

• In September 2020, the US department of energy partnered with leading lithium chloride manufacturers for lithium research projects for the efficient utilization of lithium brine solution

Fact.MR has provided detailed information about the price points of key manufacturers of lithium chloride positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Lithium Chloride Market

• By Form :

  • Solid
  • Liquid

• By Type :

  • Hydrate
  • Anhydrous

• By Purity :

  • <2N
  • 2N
  • 3N
  • 4N
  • 5N

• By Function :

  • Dehumidifier
  • Bactericide
  • Finishing Agent
  • Tracer

• By Application :

  • Batteries Production
  • Chemicals Production
    • Construction Chemicals
    • Industrial Chemicals
  • Metal Working / Production
  • Waste Water Purification

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA