Current Status and Future Development Trends of Global and Chinese Lithium Chloride Markets in 2024

Dec,04,24

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1) Current situation analysis of lithium chloride industry

With the rapid growth of the global new energy vehicle market and the increasing demand for renewable energy storage, the market scale of lithium chloride is expanding. Lithium-ion batteries is the main application field of lithium chloride, and the demand for lithium chloride is still strong in the markets of electric vehicles, mobile phones, notebook computers and other electronic products. 

The domestic industry have developed rapidly. As one of the largest countries of lithium resources in the world, China is rich in lithium mineral resources and has become the largest producer of lithium chloride in the world. Lithium chloride enterprises in China are actively promoting technology and product upgrading, striving to improve product quality, reduce costs and enhance market competitiveness.

With the continuous progress of lithium ion battery technology and changes of market demand, the lithium chloride industry is also constantly upgrading its technology and product. In order to meet the requirements of high energy density, long life and low cost of lithium-ion batteries, Lithium Chloride Company improved the product performance by improving production technology and developing new materials.

Environmental problems such as pollutant discharge and resource consumption in the production of lithium chloride have attracted great attention from governments and society at home and abroad. Lithium chloride enterprises are carrying out technological transformation in energy saving, emission reduction and recycling, so as to reduce the environmental impact.

The pattern of supply and demand has been continuously adjusted. At present, the problem of oversupply of lithium chloride industry has been alleviated, but there is still a certain shortage of supply in the market. The main lithium mine enterprises meet the market demand by expanding production capacity, increasing investment and technological innovation, so as to improve the production capacity of lithium chloride. 

2) Development trend of lithium chloride

The rapid growth of the lithium-ion battery industry is accompanied by the rapid development of electric vehicles, renewable energy and other fields, which leads to an increasing demand for lithium-ion battery market. As one of the important raw materials of lithium ion batteries, lithium chloride will benefit from the rapid growth of lithium ion battery industry.

The lithium chloride industry will continue to carry out technological innovation and material improvement to improve the performance and stability of lithium chloride. For example, the energy density, charge-discharge efficiency and safety of lithium chloride can be improved by improving the crystal structure, adjusting the particle size, improving the purity and prolonging the cycle life.

The prosperity of the new energy automobile market will have a positive impact on the lithium chloride industry. The government's support and promotion of new energy vehicles will promote the rapid development of the lithium chloride industry and meet the demand of electric vehicles for lithium-ion batteries.

From a global perspective, the increasing international competition has brought pressure on the lithium chloride industry. Some lithium-producing countries and enterprises have increased their production capacity, which further promoting the fierce market competition. Lithium chloride enterprises need to improve innovation ability, reduce costs and improve product quality in order to maintain competitiveness.

Environmental requirements and sustainable development: environmental problems are one of the important challenges facing the lithium chloride industry. Lithium chloride enterprises will pay more attention to environmental protection and sustainable development, adopt more environmentally friendly production processes and reduce environmental pollution and resource consumption. 

3) Analysis of the overall scale of global lithium chloride

The forecast data for 2023-2030 in this paper is based on the historical development of the past few years, the opinions of industry expert and the opinions of the analysts in this paper, providing a comprehensive forecast.

The global lithium chloride market reached a size of 360.51 million US dollars in 2023, and is expected to reach 672.07 million US dollars in 2030, with a compound annual growth rate (CAGR) of 8.86% from 2024 to 2030. In 2023, the global market sales of lithium chloride was 21,281 tons, and it is expected to reach 38467 tons by 2030, with a compound annual growth rate (CAGR) of 9.17% from 2024 to 2030.

In 2023, the market size of China will be US$ 90.26 million, accounting for 25.04% of the global market. It is expected to reach 191.19 million US dollars by 2030, with a global market share of 28.45%. In 2023, China's sales volume was 5,842 tons, accounting for 27.45% of the global total. It is estimated that by 2030, it will reach 12,108 tons, with a global share of 31.48.

The main production areas of lithium chloride in the world are located in North America, South America and China, with a total production capacity of more than 70%; The main consumption area is located in Asia, and the consumption share exceeds 50%. 

In terms of product types and technology, it includes anhydrous lithium chloride and hydrated lithium chloride. In 2023, anhydrous lithium chloride will account for 87.15% of global sales.

At present, the production methods of lithium chloride include conversion method, solution extraction method, ion exchange adsorption method, salting-out method, etc. The purity of high-purity lithium chloride is generally required to reach 99.9%, and impurities need to be separated in the production process. It is very difficult to remove calcium ions in production, especially in the process of adding quicklime. The existing separation methods include ion exchange method, solution extraction method, fractional crystallization method, chemical coprecipitation method, etc. All of these methods have some problems such as low purification efficiency and long technological process. In most parts of China, the main production method of lithium chloride is lithium carbonate or lithium hydroxide conversion method.

Lithium chloride is mainly used in the field of air conditioning, as a flux, desiccant and chemical reagent, as well as in the production of fireworks, dry batteries and lithium metal. In 2023, the application of lithium battery accounted for 21.17% of global sales.

In 2023, the market share of major manufacturers will account for 48.31%, and the market concentration will be high. It is expected that the industry competition will be fierce in the coming years, especially in the Chinese market.

In recent years, many manufacturers in China have expanded or laid out the lithium chloride business. For example, a new project with an annual output of 20000 tons of battery-grade lithium carbonate and 20000 tons of lithium chloride was built by a company in the industry. The construction site is located in Qarhan Potassium Lithium Industrial Park, Golmud Salt Lake Co., Ltd., Haixi Mongolian and Tibetan Autonomous Prefecture, Qinghai Province, and it is expected to be put into operation by the end of 2024.