Lithium Chloride Market Expected to Reach $3.2 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Lithium Chloride Market," The lithium chloride market size was valued at $1.7 billion in 2021, and is estimated to reach $3.2 billion by 2031, growing at a CAGR of 6.8% from 2022 to 2031.

Lithium chloride is used in the production of metallic lithium, welding fluxes, and as an aqueous solution for humidity management in air conditioning. Lithium chloride is used in batteries, air treatment and others applications. It is also used for the production of lithium metal by electrolysis and it also used as a brazing flux for aluminum in automobile parts. It is extremely hygroscopic and is commonly used in dehumidification systems in sectors like as food processing and horticulture to remove moisture from the air. Further, lithium chloride is becoming increasingly important in the creation of industrial products, particularly batteries for electronic gadgets and electric cars. The medical use of lithium chloride has gained traction worldwide. Lithium chloride is one of the most well-known mood stabilizers with antisuicidal effects and is nowadays being used as an agent for acute mania and as maintenance treatment in bipolar disorder. Further, process improvements have made lithium chloride an affordable solution for various industries. 

The growth of the global lithium chloride industry is majorly attributable to its wide applications in various industries such as batteries, air treatment and others. Also, surge in use of lithium chloride in electronics industry is driving the lithium chloride market  growth during the forecast period. Lithium chloride is used as electrolyte in batteries or further processed to produce lithium metal for lead and magnesium alloys, lithium hydride for high-purity silane, and lithium nitride used as catalyst. Lithium batteries can be used in many combinations of active materials for the anode, cathode, and electrolyte. Among all other industries, the use of lithium in secondary batteries has seen the most market growth. Lithium chloride is also in demand in smartphones, tablets, smart watch, camera, and pacemakers, due to its ability to store up to 150 watt-hours of electricity into 1 kilogram of battery.

However, health hazards associated with lithium chloride is projected to hinder the expansion of the market. On the contrary, increasing popularity of electric vehicles in the chemical industry is expected to offer ample growth opportunities for the lithium chloride industry. In automotive applications, lithium chloride cells are typically connected together in various configurations and packaged with associated control and safety circuitry to type a battery module. In automotive applications, lithium chloride is used in golf carts, buses, forklifts, wheelchairs, motorcycles, and others. It is used in energy storage applications such as portable solar energy storage and fixed energy storage. Moreover, rising popularity of electric vehicles among consumers is projected to boost the market for lithium chloride. For instance, according to IBEF, electric vehicle (EV) sales reached a new high of 5,592 units. Overall, in 2021, 329,190 EVs were sold in India, indicating a 168% YoY growth over last year’s sales of 122,607 units.

The global lithium chloride market is segmented into type, application, end-use industry, and region. On the basis of type, the market is categorized into lithium chloride hydrate, lithium chloride anhydrous and others.  On the basis of application, the market is categorized into batteries, air treatment, others. On the basis of end-use industry, the market is categorized into electronics, automotive, and others. Region wise, the market is studied across North America, Europe, Asia-Pacific, and LAMEA. The lithium chloride market share is analyzed across all significant regions and countries. Asia-Pacific is projected to register a robust growth during the forecast period. This is attributed to the fact that lithium chloride is used as a brazing flux for aluminum in automobile parts. Lithium chloride in Asia-Pacific is used in battery applications of automobiles, truck, bus, train, or other transportation vehicles. Lithium-ion (Li-ion) batteries are the key component of most of the automotive vehicles in the region.

The major players operating in the global Lithium chloride market include Alfa Aesar, American elements, Albemarle corporation, FMC corporation, Glentham life sciences, Harshil Industries, Honeywell international Inc., LevertonHelm Ltd, Nippon chemical industries, Suzhou huizhi lithium energy material co. Ltd, Sichuuan brivo lithium materials co. Ltd, Tokyo chemicals, SQM S.A, Loba chemie and Mody pharma.

COVID-19 Analysis:

The COVID-19 pandemic had moderate effects on the lithium chloride market. Lithium chloride has been reported as a potential antiviral drug for certain viruses. It can efficiently impair the replication of a variety of viruses, including infectious bronchitis coronavirus (IBV) and transmissible gastroenteritis coronavirus (TGEV). During the COVID-19 pandemic, most people are isolated and in order to reduce depression and mania, the drug demand for lithium chloride has increased. Furthermore, the COVID-19 epidemic has naturally increased the long-standing trend toward manufacturing automation. Motion sensors, contactless sensors and contactless elevators are highly marketed in pandemic for keeping house safe and secure. Therefore, the above mentioned factors are predicted to surge the demand for lithium chloride globally during the COVID-19 pandemic.

Key findings of the study: 

• A comprehensive lithium chloride market analysis of the factors that drive and restrain the market growth is provided.
• The qualitative data in this report aims at the lithium chloride market trends, dynamics, and developments in the industry.
• Depending on type, the lithium chloride hydrate segment is expected to grow at a CAGR of 7.7% during the forecast period.
• Based on application, the batteries segment was the highest revenue contributor to the market in 2021.
• On the basis of end-use industry, the electronics segment was the highest revenue contributor to the market in 2021 and is estimated to grow at a CAGR of 6.1%.
• Region wise, Asia-Pacific and North America are expected to witness considerable CAGRs of 8.1% and 6.4%, respectively, during the forecast period.
• China was the highest revenue contributor growing with a CAGR of 8.7%.
• South Korea, and Japan are expected to witness considerable CAGRs of 6.8%, and 6.6% respectively, during the forecast period.