Lithium Chloride Market
Lithium Chloride Market Forecasts to 2032 - Global Analysis By Type (Lithium Chloride Hydrate, Lithium Chloride Anhydrous and Other Types), Grade (Battery Grade, Industrial Grade and Pharmaceutical Grade), Purity Level, Function, Application, End User and By Geography
According to Stratistics MRC, the Global Lithium Chloride Market is accounted for $2.38 billion in 2025 and is expected to reach $4.30 billion by 2032 growing at a CAGR of 8.8% during the forecast period. An inorganic substance with a white, crystalline solid form and a high solubility in both organic solvents and water is lithium chloride (LiCl). Because of its hygroscopic properties, it is used extensively in industrial settings as a desiccant in drying systems, as a flux in brazing and welding, and in the electrolysis process to produce lithium metal. In biochemical research, lithium chloride is also used, especially in the precipitation processes of DNA and RNA.
According to the U.S. Geological Survey (USGS), lithium production has been steadily increasing to meet the growing demand for lithium-ion batteries. The USGS reports that global lithium production reached 82,000 metric tons in 2024, up from 77,000 metric tons in 2023.
Market Dynamics:
Driver:
Growing need for battery manufacturing
The synthesis of lithium metal, an essential component of lithium-ion batteries, depends on lithium chloride as a precursor. There is a growing need for lithium-based compounds due to the quick uptake of electric vehicles (EVs), portable electronics, and renewable energy storage technologies. Electrification of the transportation sector is being pushed by governments around the world, and battery production is being accelerated by incentives for EV adoption. Additionally, the need for lithium chloride is being fueled by developments in solid-state batteries, which need lithium metal. It is anticipated that the increasing global drive for decarburization and energy independence will maintain the high demand for lithium-ion and next-generation batteries, increasing the use of lithium chloride.
Restraint:
Supply chain limitations and limited availability
The extraction of lithium, which is primarily done in a few nations like Chile, Australia, China, and Argentina, is essential to the production of lithium chloride. Supply shortages and unstable prices can result from any interruption in mining operations brought on by labor strikes, environmental restrictions, geopolitical unrest, or resource depletion. Furthermore, hard rock mining and lithium extraction from brine pools are also labor-intensive processes that take years to complete and require investment before new mines can be opened. This leads to supply chain bottlenecks and heightened competition for lithium resources worldwide.
Opportunity:
Growth of energy storage devices (ESS)
Effective energy storage solutions are becoming more and more necessary as a result of the move toward renewable energy sources like solar and wind. Large-scale grid storage is best served by lithium-ion batteries because of their high energy density, extended cycle life, and effectiveness. It is anticipated that the need for lithium chloride in energy storage systems will increase as governments and businesses make investments in sustainable energy infrastructure. Moreover, lithium chloride is positioned as a crucial element in the shift to cleaner energy as off-grid and hybrid power solutions get more and more popular in rural and industrial areas.
Threat:
Market fluctuations and price volatility
The demand for lithium, mining output, and speculative trading all have an impact on the extremely volatile price of lithium chloride. High demand periods, like the lithium boom brought on by EVs and battery storage, have caused lithium prices to soar, increasing the cost of lithium chloride for final consumers. On the other hand, oversupply circumstances, such as those that occurred in 2019 and 2023, when a surge of new mining projects caused lithium prices to fall, can result in price crashes and deter investment in the industry. Additionally, long-term business planning is more difficult because of the financial risks that this unpredictability poses to buyers, investors, and manufacturers.
Covid-19 Impact:
The COVID-19 pandemic initially caused production halts, supply chain disruptions, and decreased demand from important end-use industries, which had a mixed effect on the lithium chloride market. Supply shortages and price swings resulted from the temporary closure of lithium mining and processing facilities due to lockdowns and restrictions, especially in major lithium-producing regions like Chile, Argentina, and Australia. Furthermore, the short-term demand for lithium chloride decreased due to the slowdown in the electronics and automotive sectors, which are major users of lithium-ion batteries. But as economies started to improve, government stimulus plans and investments in renewable energy and electric vehicles (EVs) helped the lithium market grow and drove a robust demand recovery.
The Lithium Chloride Anhydrous segment is expected to be the largest during the forecast period
The Lithium Chloride Anhydrous segment is expected to account for the largest market share during the forecast period. This substance is highly prized for its adaptability and efficiency in a wide range of uses. An essential electrolyte in the electrolysis process of lithium metal production, anhydrous lithium chloride makes it easier to extract pure lithium metal. Since moisture control is crucial in industrial drying processes and air conditioning systems, its hygroscopic nature makes it a great desiccant. Moreover, anhydrous lithium chloride is used as a flux to eliminate impurities during the aluminum manufacturing process, enhancing the end product's quality.
The Battery Grade segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the Battery Grade segment is predicted to witness the highest growth rate. The growing need for lithium-ion batteries, which are essential to the quickly growing markets for consumer electronics and electric vehicles (EVs), is the main cause of this increase. Because of its high purity and low levels of impurities, battery-grade lithium chloride is crucial for applications needing dependable and effective energy storage. Additionally, the demand for premium lithium chloride in battery manufacturing is anticipated to maintain its strong growth trajectory as global initiatives increasingly center on sustainable energy solutions and the shift to electrified transportation.
Region with largest share:
During the forecast period, the Asia Pacific region is expected to hold the largest market share. The region's strong manufacturing sectors, especially in the electronics, automotive, and energy storage sectors—all of which are significant users of lithium-ion batteries—are the main drivers of this dominance. China is the largest lithium processor and battery manufacturer in the world, and South Korea, Japan, and China are the top producers of batteries. High-purity lithium chloride is in greater demand in the area due to robust government policies that support the switch to electric vehicles (EVs), renewable energy storage, and grid stabilization.
Region with highest CAGR:
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, driven by the growing need for lithium-ion batteries in a number of different sectors. The production of electric vehicles (EVs) and renewable energy projects, both of which mainly depend on effective energy storage technologies, are seeing significant investments in the United States in particular. Further driving the market are government programs supporting clean energy and developments in battery manufacturing technology. Moreover, a strong domestic supply chain for lithium compounds is also the goal of partnerships between mining companies and tech companies, which will lessen dependency on imports and improve market stability.
Key players in the market
Some of the key players in Lithium Chloride market include Albemarle Corporation, Honeywell International, Tokyo Chemicals Inc, Leverton Helm Ltd, FMC Corporation, Nippon Chemical Industries Co. Ltd, Sainor Laboratories Pvt Ltd, Alfa Aesar, Harshil Industries, Kanto Chemical Co., Inc., Axiom Corporation, Mody Chemi Pharma Ltd., Arena Minerals Inc., Suzhou Huizhi Lithium Energy Material Co. Ltd. and Otto Chemie Pvt Ltd.
Key Developments:
In August 2024, Honeywell announced a significant expansion of its licensing agreement with AFG Combustion and its subsidiary, Greens Combustion Ltd., to include Callidus flares. This expanded agreement not only doubles the range of greenhouse gas-reducing Callidus Ultra Blue Hydrogen process burners but also enhances global customer support.
In July 2024, FMC Corporation announced it has signed a definitive agreement to sell its Global Specialty Solutions (GSS) business to Environmental Science US, LLC, known as Envu, an environmental science company providing innovations that protect and enhance the health of environments around the world.
In May 2024, Albemarle Corporation announced an innovative agreement with Martin Marietta Materials, Inc. a leading supplier of building materials — including aggregate, cement, ready mixed concrete and asphalt — to make beneficial use of extracted limestone material from Albemarle's proposed Kings Mountain Mine project.
Types Covered:
• Lithium Chloride Hydrate
• Lithium Chloride Anhydrous
• Other Types
Grades Covered:
• Battery Grade
• Industrial Grade
• Pharmaceutical Grade
Purity Levels Covered:
• 99.0% - 99.9%
• 99.95% - 99.99%
• Greater than 99.99%
Functions Covered:
• Dehumidifier
• Bactericide
• Finishing Agent
• Tracer
Applications Covered:
• Batteries
• Ceramics & Glass
• Lubricants
• Pharmaceuticals
• Agrochemicals
• Polymer Production
• Air Treatment
• Other Applications
End Users Covered:
• Electronics
• Automotive
• Other End Users
Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2024, 2025, 2026, 2028, and 2032
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances
Table of Contents
1 Executive Summary
2 Preface
2.1 Abstract
2.2 Stake Holders
2.3 Research Scope
2.4 Research Methodology
2.4.1 Data Mining
2.4.2 Data Analysis
2.4.3 Data Validation
2.4.4 Research Approach
2.5 Research Sources
2.5.1 Primary Research Sources
2.5.2 Secondary Research Sources
2.5.3 Assumptions
3 Market Trend Analysis
3.1 Introduction
3.2 Drivers
3.3 Restraints
3.4 Opportunities
3.5 Threats
3.6 Application Analysis
3.7 End User Analysis
3.8 Emerging Markets
3.9 Impact of Covid-19
4 Porters Five Force Analysis
4.1 Bargaining power of suppliers
4.2 Bargaining power of buyers
4.3 Threat of substitutes
4.4 Threat of new entrants
4.5 Competitive rivalry
5 Global Lithium Chloride Market, By Type
5.1 Introduction
5.2 Lithium Chloride Hydrate
5.3 Lithium Chloride Anhydrous
5.4 Other Types
6 Global Lithium Chloride Market, By Grade
6.1 Introduction
6.2 Battery Grade
6.3 Industrial Grade
6.4 Pharmaceutical Grade
7 Global Lithium Chloride Market, By Purity Level
7.1 Introduction
7.2 99.0% - 99.9%
7.3 99.95% - 99.99%
7.4 Greater than 99.99%
8 Global Lithium Chloride Market, By Function
8.1 Introduction
8.2 Dehumidifier
8.3 Bactericide
8.4 Finishing Agent
8.5 Tracer
9 Global Lithium Chloride Market, By Application
9.1 Introduction
9.2 Batteries
9.3 Ceramics & Glass
9.4 Lubricants
9.5 Pharmaceuticals
9.6 Agrochemicals
9.7 Polymer Production
9.8 Air Treatment
9.9 Other Applications
10 Global Lithium Chloride Market, By End User
10.1 Introduction
10.2 Electronics
10.3 Automotive
10.4 Other End Users
11 Global Lithium Chloride Market, By Geography
11.1 Introduction
11.2 North America
11.2.1 US
11.2.2 Canada
11.2.3 Mexico
11.3 Europe
11.3.1 Germany
11.3.2 UK
11.3.3 Italy
11.3.4 France
11.3.5 Spain
11.3.6 Rest of Europe
11.4 Asia Pacific
11.4.1 Japan
11.4.2 China
11.4.3 India
11.4.4 Australia
11.4.5 New Zealand
11.4.6 South Korea
11.4.7 Rest of Asia Pacific
11.5 South America
11.5.1 Argentina
11.5.2 Brazil
11.5.3 Chile
11.5.4 Rest of South America
11.6 Middle East & Africa
11.6.1 Saudi Arabia
11.6.2 UAE
11.6.3 Qatar
11.6.4 South Africa
11.6.5 Rest of Middle East & Africa
12 Key Developments
12.1 Agreements, Partnerships, Collaborations and Joint Ventures
12.2 Acquisitions & Mergers
12.3 New Product Launch
12.4 Expansions
12.5 Other Key Strategies
13 Company Profiling
13.1 Albemarle Corporation
13.2 Honeywell International
13.3 Tokyo Chemicals Inc
13.4 Leverton Helm Ltd
13.5 FMC Corporation
13.6 Nippon Chemical Industries Co. Ltd
13.7 Sainor Laboratories Pvt Ltd
13.8 Alfa Aesar
13.9 Harshil Industries
13.10 Kanto Chemical Co., Inc.
13.11 Axiom Corporation
13.12 Mody Chemi Pharma Ltd.
13.13 Arena Minerals Inc.
13.14 Suzhou Huizhi Lithium Energy Material Co. Ltd.
13.15 Otto Chemie Pvt Ltd
List of Tables
1 Global Lithium Chloride Market Outlook, By Region (2024-2032) ($MN)
2 Global Lithium Chloride Market Outlook, By Type (2024-2032) ($MN)
3 Global Lithium Chloride Market Outlook, By Lithium Chloride Hydrate (2024-2032) ($MN)
4 Global Lithium Chloride Market Outlook, By Lithium Chloride Anhydrous (2024-2032) ($MN)
5 Global Lithium Chloride Market Outlook, By Other Types (2024-2032) ($MN)
6 Global Lithium Chloride Market Outlook, By Grade (2024-2032) ($MN)
7 Global Lithium Chloride Market Outlook, By Battery Grade (2024-2032) ($MN)
8 Global Lithium Chloride Market Outlook, By Industrial Grade (2024-2032) ($MN)
9 Global Lithium Chloride Market Outlook, By Pharmaceutical Grade (2024-2032) ($MN)
10 Global Lithium Chloride Market Outlook, By Purity Level (2024-2032) ($MN)
11 Global Lithium Chloride Market Outlook, By 99.0% - 99.9% (2024-2032) ($MN)
12 Global Lithium Chloride Market Outlook, By 99.95% - 99.99% (2024-2032) ($MN)
13 Global Lithium Chloride Market Outlook, By Greater than 99.99% (2024-2032) ($MN)
14 Global Lithium Chloride Market Outlook, By Function (2024-2032) ($MN)
15 Global Lithium Chloride Market Outlook, By Dehumidifier (2024-2032) ($MN)
16 Global Lithium Chloride Market Outlook, By Bactericide (2024-2032) ($MN)
17 Global Lithium Chloride Market Outlook, By Finishing Agent (2024-2032) ($MN)
18 Global Lithium Chloride Market Outlook, By Tracer (2024-2032) ($MN)
19 Global Lithium Chloride Market Outlook, By Application (2024-2032) ($MN)
20 Global Lithium Chloride Market Outlook, By Batteries (2024-2032) ($MN)
21 Global Lithium Chloride Market Outlook, By Ceramics & Glass (2024-2032) ($MN)
22 Global Lithium Chloride Market Outlook, By Lubricants (2024-2032) ($MN)
23 Global Lithium Chloride Market Outlook, By Pharmaceuticals (2024-2032) ($MN)
24 Global Lithium Chloride Market Outlook, By Agrochemicals (2024-2032) ($MN)
25 Global Lithium Chloride Market Outlook, By Polymer Production (2024-2032) ($MN)
26 Global Lithium Chloride Market Outlook, By Air Treatment (2024-2032) ($MN)
27 Global Lithium Chloride Market Outlook, By Other Applications (2024-2032) ($MN)
28 Global Lithium Chloride Market Outlook, By End User (2024-2032) ($MN)
29 Global Lithium Chloride Market Outlook, By Electronics (2024-2032) ($MN)
30 Global Lithium Chloride Market Outlook, By Automotive (2024-2032) ($MN)
31 Global Lithium Chloride Market Outlook, By Other End Users (2024-2032) ($MN)
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.
List of Figures
RESEARCH METHODOLOGY
We at ‘Stratistics’ opt for an extensive research approach which involves data mining, data validation, and data analysis. The various research sources include in-house repository, secondary research, competitor’s sources, social media research, client internal data, and primary research.
Our team of analysts prefers the most reliable and authenticated data sources in order to perform the comprehensive literature search. With access to most of the authenticated data bases our team highly considers the best mix of information through various sources to obtain extensive and accurate analysis.
Each report takes an average time of a month and a team of 4 industry analysts. The time may vary depending on the scope and data availability of the desired market report. The various parameters used in the market assessment are standardized in order to enhance the data accuracy.
Data Mining
The data is collected from several authenticated, reliable, paid and unpaid sources and is filtered depending on the scope & objective of the research. Our reports repository acts as an added advantage in this procedure. Data gathering from the raw material suppliers, distributors and the manufacturers is performed on a regular basis, this helps in the comprehensive understanding of the products value chain. Apart from the above mentioned sources the data is also collected from the industry consultants to ensure the objective of the study is in the right direction.
Market trends such as technological advancements, regulatory affairs, market dynamics (Drivers, Restraints, Opportunities and Challenges) are obtained from scientific journals, market related national & international associations and organizations.
Data Analysis
From the data that is collected depending on the scope & objective of the research the data is subjected for the analysis. The critical steps that we follow for the data analysis include:
- Product Lifecycle Analysis
- Competitor analysis
- Risk analysis
- Porters Analysis
- PESTEL Analysis
- SWOT Analysis
The data engineering is performed by the core industry experts considering both the Marketing Mix Modeling and the Demand Forecasting. The marketing mix modeling makes use of multiple-regression techniques to predict the optimal mix of marketing variables. Regression factor is based on a number of variables and how they relate to an outcome such as sales or profits.
Data Validation
The data validation is performed by the exhaustive primary research from the expert interviews. This includes telephonic interviews, focus groups, face to face interviews, and questionnaires to validate our research from all aspects. The industry experts we approach come from the leading firms, involved in the supply chain ranging from the suppliers, distributors to the manufacturers and consumers so as to ensure an unbiased analysis.
We are in touch with more than 15,000 industry experts with the right mix of consultants, CEO's, presidents, vice presidents, managers, experts from both supply side and demand side, executives and so on.
The data validation involves the primary research from the industry experts belonging to:
- Leading Companies
- Suppliers & Distributors
- Manufacturers
- Consumers
- Industry/Strategic Consultants
Apart from the data validation the primary research also helps in performing the fill gap research, i.e. providing solutions for the unmet needs of the research which helps in enhancing the reports quality.
For more details about research methodology, kindly write to us at info@strategymrc.com
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