Lithium Carbonate Market Expected to Reach $102.8 Billion by 2033

According to a new report published by Allied Market Research, titled, “Lithium Carbonate Market," The lithium carbonate market was valued at $26.7 billion in 2023, and is estimated to reach $102.8 billion by 2033, growing at a CAGR of 14.5% from 2024 to 2033.

Introduction

Lithium carbonate is a colorless crystalline solid that is soluble in water, and its primary use is as a precursor in the production of lithium metal and other lithium compounds. It is a stable compound under normal conditions but reacts with acids to form lithium salts. The compound is produced mainly through two methods: the extraction of lithium from lithium-bearing ores, such as spodumene, and from brine sources like lithium-rich salt flats. The production of lithium carbonate is a key step in extracting lithium for use in batteries, electronic devices, and other specialized applications.

In the battery manufacturing process, lithium carbonate is converted into lithium hydroxide or lithium salts, which are then used to form the cathode material in lithium-ion batteries. The demand for lithium carbonate in the battery industry has surged in recent years due to the increasing demand for EVs and renewable energy storage systems. As global efforts to combat climate change intensify, the role of lithium-ion batteries as a key enabler of clean energy technology has made lithium carbonate a critical commodity.

Lithium carbonate is also an important therapeutic agent, particularly in the treatment of mental health conditions like bipolar disorder and depression. Lithium compounds, including lithium carbonate, have been used for decades as a mood-stabilizing drug. It is believed to work by altering the balance of neurotransmitters in the brain, which helps to stabilize mood swings in patients with bipolar disorder.

Market Dynamics

Rising demand for electric vehicles is expected to drive the growth of the market. Electric vehicles have emerged as a key component in reducing greenhouse gas emissions and combating climate change. Governments worldwide are enacting stringent regulations and offering incentives to encourage the adoption of EVs, further boosting their popularity. This push towards decarbonization aligns with global efforts to reduce reliance on fossil fuels, which in turn has led to increased interest in electric mobility. Lithium-ion batteries, which power the majority of electric vehicles, rely heavily on lithium carbonate as a key raw material. Lithium carbonate is used to produce the cathodes of lithium-ion batteries, where its high energy density and long-lasting performance make it a critical component for achieving the range and efficiency that consumers expect from modern EVs. As the demand for EVs rises, so does the need for lithium carbonate, creating a direct link between the expansion of electric vehicle markets and the growth of the lithium carbonate sector.

However, competition from alternative materials is expected to hamper the growth of lithium carbonate market. As the global demand for energy storage solutions continues to rise, with the growth of electric vehicles (EVs) and renewable energy storage systems, alternative materials and battery technologies are emerging as potential competitors to lithium-ion batteries. Solid-state batteries, which replace the liquid electrolyte found in conventional lithium-ion batteries with a solid electrolyte, promise several potential benefits, including higher energy density, greater safety (as they are less prone to fires and leaks), and a longer lifespan. These advantages can significantly reduce the demand for lithium carbonate, especially if solid-state technology becomes commercially viable and widespread in applications like EVs and portable electronics. Similarly, sodium-ion batteries are seen as a promising alternative. Sodium, being more abundant and less expensive than lithium, presents an attractive option, especially for large-scale energy storage applications.

Segments Overview

The lithium carbonate market is segmented into grade, application, and region. On the basis of grade, the market is divided into Battery Grade, Technical Grade, and Industrial Grade. On the basis of application, the lithium carbonate market is categorized into electric vehicles, pharmaceutical, cement manufacturing, glass & ceramics, and others. Based on region the market is divided into North America, Europe, Asia-Pacific, and LAMEA.

On the basis of grade, the industrial grade was the fastest growing segment in the market in 2023. Industrial-grade lithium carbonate plays a crucial role in various industries due to its chemical properties and high reactivity. One of its primary applications is in the production of lithium-based greases, which are widely used in the automotive, aerospace, and manufacturing sectors. These greases offer superior lubrication, high-temperature resistance, and excellent mechanical stability, making them essential in heavy-duty machinery and industrial equipment. Additionally, lithium carbonate serves as a key raw material in the glass and ceramics industry, where it enhances the thermal expansion properties of glass and improves the strength and durability of ceramic products.

On the basis of application, the others segment including air purification systems, lubricants and greases, and others was the fastest growing segment in the market in 2023. Lithium carbonate plays a crucial role in air purification systems, particularly in industrial and specialized applications. It is used in carbon dioxide (CO₂) absorption systems, where lithium-based compounds help capture and neutralize excess CO₂ in enclosed environments such as submarines, spacecraft, and high-tech industrial applications. In the lubricant and grease industry, lithium carbonate serves as a key raw material for producing lithium-based greases. These greases, often formulated with lithium hydroxide derived from lithium carbonate, are known for their excellent thermal stability, water resistance, and high load-bearing capabilities.

Regional Analysis

Region wise, Asia-Pacific was the fastest growing region in 2023 . The Asia-Pacific region plays a crucial role in the global lithium carbonate market, primarily driven by its expanding electric vehicle (EV) industry, energy storage sector, and the growing demand for lithium-ion batteries. Countries such as China, Japan, South Korea, and Australia are at the forefront of lithium carbonate consumption, with China dominating due to its massive battery manufacturing and EV production capabilities. The Chinese government’s strong push for electrification and renewable energy integration has significantly increased lithium carbonate demand, particularly for lithium iron phosphate (LFP) and nickel-manganese-cobalt (NMC) batteries.

Competitive Analysis

The major prominent players operating in the lithium carbonate market include Ganfeng Lithium Group Co., Ltd, Albemarle Corporation, SQM S.A., Tianqi Lithium, LevertonHELM Limited, Camber Pharmaceuticals, Inc, Central Drug House, Vishnupriya Chemicals Pvt. Ltd, PACIFIC ORGANICS PVT. LTD, and Merck KGaA.

In February 2025, EVE Energy commenced operations at its first overseas battery plant in Malaysia, producing 680 million battery cells annually. This expansion signifies EVE Energy's efforts to diversify production and cater to global demand.

Key Market Insights

• On the basis of grade, battery grade segment dominated the lithium carbonate market accounting for more than half of the market share in 2023.
• On the basis of application, electric vehicles was the most lucrative segment representing the CAGR of 14.1% during the forecast period.
• Region wise, Asia-Pacific dominated the market accounting for half of the market share in 2023.