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Lithium Chemicals Market revenue is slated to experience substantial gains through 2023 - 2032. This can primarily be attributed to the rising demand for li-ion batteries in key application sectors, including EVs and consumer electronics.
Globally, EV adoption has picked up unprecedented pace over the past couple of years, fueled by strict emission regulations, environmental concerns, and favorable incentives by government agencies to promote EV purchases. Many automakers have been ramping up their EV efforts and are actively focusing on establishing novel li-ion battery production capacities.
The lithium chemicals market growth is also characterized by rising consumption in polymers, lubricants, and ceramics & glass. Polymers have recently started to observe a strong global demand due to their extensive use in virtually all end-use vertical. At the same time, the use of high-performance, durable, and aesthetic ceramic and glass products has increased, fueled by the ongoing expansion of residential and commercial sectors.
Lithium chemicals market share from medical industry is slated to hold a notable growth through 2032. Lithium is used extensively as a mood stabilizer in patients to treat mood disorders. The compound is available in both slow-release and regular tablets (lithium carbonate) as well as orally administered liquid (lithium citrate).
Studies have found lithium compounds effective for alleviating mood disorders and also remedy mental conditions such as hypomania, mania, bipolar disorder, and depressive episodes among others. These compounds can also help reduce the impulses of self-harming or aggressive behavior among patients. Increasing burden of mental health disorders on the global healthcare industry is expected to certainly boost the consumption of lithium compounds through 2032.
North America lithium chemicals market size is projected to outline an upward growth trajectory over the forthcoming years, driven by the region’s ongoing EV boom. Sales of electric vehicles have surged exponentially over the past years, helped by their rising popularity among consumers and government incentives that reward customers for making EV purchases.
Back in August 2021, US President Joe Biden had announced a USD 174 billion federal spending, including consumer incentives of more than USD 100 billion, to decarbonize the nation’s transportation sector by making 50% of all new vehicle sales electric in 2030. The country also has provisions for customers purchasing a used EV, where they can obtain tax credits of up to USD 4000, or 30% of the EV’s price, whichever is less if they buy an EV that it at least 2 years old.
Following the announcement, leading carmakers such as GM, Ford, and Chrysler put out a joint statement that said that they aim to attain 40-5-% annual EV sales within the country by 2030.
Mody Chemi Pharma Ltd., Sichuan Brivo, Albemarle, Talison, and Chengdu Tianqi are among the notable lithium chemicals market key players. Manufacturers are looking to expand their market presence through strategies such as acquisitions and collaborations. Citing a recent instance, in September 2021, Albemarle Corporation announced that its subsidiary Albemarle Lithium U.K. had completed the acquisition of China’s Guangxi Tianyuan New Energy Materials Co. Ltd. for USD 200 million.
Russia’s invasion of Ukraine has had a fairly negative impact on the lithium chemicals market as it further strained the already stressed supply chain of the rare earth element. According to reports, Ukraine is home to more than 500,000 tons of high-quality lithium reserves and also contains vast quantities of other rare earth elements. In fact, before the war, the country was regarded as a key future contributor for the world’s transition to green technologies. With recent pre-Russia-Ukraine-war US policy mandating EV firms to not source their lithium from countries such as Russia and China, the importance of Ukraine as a key supplier has been further elevated in the market.
While several nations are taking steps to bring the conflict to an end, the market is likely to feel the crunch until that happens.