Research on the Status and Development Strategy of Lithium Nitrate Industry

Research on the Status and Development Strategy of Lithium Nitrate Industry 

Lithium nitrate, chemical formula is LiNO 3, is an inorganic compound. Lithium nitrate is a white crystalline powder with no special smell, which is soluble in pyridine, ethanol, ammonia and water, but insoluble in hydrofluoroether. Lithium nitrate has the characteristics of deliquescence and strong oxidation, and is widely used in the chemical industry, ceramics, metallurgy, electroplating, aerospace, batteries and other fields.

The main preparation methods for lithium nitrate are lithium carbonate conversion method and lithium hydroxide conversion method, and lithium carbonate and lithium hydroxide are widely used in its production process. China is a big producer and consumer of lithium carbonate and lithium hydroxide, benefiting from the growth of downstream demand and increasing output. Taking lithium carbonate as an example, according to the statistics of the Lithium Branch of China Nonferrous Metals Association, the output of lithium carbonate in China in 2022 reached 395,000 tons, up 32.5% year-on-year. However, at present, the lithium carbonate market in China is in an oversupply situation, and the output can not meet the demand for downstream production, which brings certain challenges to the development of the lithium nitrate industry.

Lithium nitrate has excellent properties and a wide range of applications, including chemical industry, ceramics, metallurgy, electroplating, aerospace, batteries, etc. Chemical industry is the main demand industry of lithium nitrate, which can be used to manufacture liquid ammonia stabilizers, chemical analytical reagents, mordants, catalysts and other products. The demand for lithium nitrate is emerging in the field of batteries, and lithium nitrate can be used as electrolyte additives to produce lithium-sulfur batteries, lithium-oxygen batteries and other products.

1) Lithium nitrate industrial chain

Raw material procurement: the raw material of lithium nitrate is mainly lithium ore. These minerals mainly come from mines at home and abroad, such as lithium mines in Australia and Chile. Enterprises need to buy these minerals, and process and refine them to obtain lithium compounds used to produce lithium nitrate.

Production: After the lithium compound is obtained, companies will use specific technology and equipment to produce lithium nitrate. The process may include mixing, dissolving, reacting, filtering, drying and other steps, and finally the lithium nitrate products can be obtained.

Sales plate: Lithium nitrate products are mainly sold to downstream customers, such as batteries, ceramics, glass and other industries. Enterprises will formulate sales strategies and channels according to the market demand and the characteristics of customer groups to ensure the market share and profitability of the products.

2) Lithium Nitrate Market Analysis

Global Market Analysis: the global lithium nitrate market is expected to continue to grow at a significant rate in the coming years, with the global lithium nitrate market size of USD 145.2 million in 2020, and is expected to reach USD 190.9 million by 2028, growing at a CAGR of 3.6% from 2021 to 2028. The report attributes this increase to the growing demand for lithium-ion batteries in all walks of life, especially in the automotive field.

The report also pointed out that the Asia-Pacific region is the largest regional market for lithium nitrate because of the high demand for lithium-ion batteries from China, Japan and South Korea. North America and Europe have also been identified as key regions with great growth potential, because these regions are increasingly adopting electric vehicles and renewable energy storage systems.

China market Analysis: China is the world's largest producer and consumer of lithium, and also the main participant in the global lithium nitrate market. Driven by the increasing demand for lithium-ion batteries in automobile and energy storage industries, the lithium nitrate market in China has been growing rapidly in the past several years.

The market size of lithium nitrate in China will be 162 million yuan in 2020, and it is expected to reach 236 million yuan in 2027, and the CAGR will increase by 5.3% from 2021-2027. Increasing demand for electric vehicles and renewable energy storage systems is the main driving force for this growth. 

3) The competition pattern

In recent years, Chinese enterprises and research institutions have continuously increased the application of lithium nitrate in the field of battery research and made many new progress. In February 2023, the University of Science and Technology of China Hu Yuan, Song Lei, Kan Yongchun group successfully developed a non-combustible lithium-metalattery electrolyte. The product is based on lithium nitrate as a substrate, which can greatly enhance the electrochemical performance of lithium batteries as well as the safety of the soft pack lithium-metal batteries.

The main producers of lithium nitrate in China include Sichuan South China Inorganic Salt Co., Ltd. and Hubei Xinrunde Chemical Co., Ltd. At present, the lithium nitrate market in China is dominated by small and medium-sized enterprises, with low industry concentration. In the future, with the continuous improvement of the technological innovation level of local enterprises, enterprises with high performance lithium nitrate production capacity will occupy more space in the market.

Lithium nitrate is widely used in many fields. With the growth of downstream demand, the market scale of lithium nitrate in China is constantly expanding. In recent years, driven by technical innovation, the application of lithium nitrate has been further expanded. China's lithium nitrate production enterprises, with in-depth research and technological progress in the future, the concentration of lithium nitrate industry in China will be improved. Driven by the increasing demand for lithium-ion batteries in various industries, the global lithium nitrate market is expected to continue to grow steadily in the next few years. It is expected that China will remain a major player in the global market, with a fast-growing domestic market and a large number of domestic manufacturers.

4) Development trend of lithium nitrate industry

Market demand continues to grow: with the rapid development of electric vehicles and renewable energy storage systems, the market demand for lithium-ion batteries will continue to grow. As one of the main raw materials for lithium ion batteries, the market demand for lithium nitrate will continue to grow.

Technical progress promotes the development of the industry: With the continuous progress of science and technology, the production technology and equipment for lithium nitrate are constantly updated and improved. Some advanced production technology and equipment are constantly emerging, which not only improve the production efficiency and product quality, but also reduce the production costs. These technical advances have provided strong support for the rapid development of the lithium nitrate industry.

Intensified competition in the industry: With the expansion of the market scale, the competition in the lithium nitrate industry is becoming increasingly fierce. Major companies have increased their investment, expanded their production scale and compete for market share. At the same time, a number of small enterprises have emerged, further intensifying market competition.

Improvement of environmental protection requirements: With the increasing attention to environmental protection, the environmental protection requirements of the lithium nitrate industry are gradually improving. Enterprises need to adopt more environmentally-friendly production technologies and equipment to reduce pollution emissions and improve resource utilization. These environmental protection measures are helpful to the sustainable development of the lithium nitrate industry.