U.S. Lithium Chloride Market Size, Share & COVID-19 Impact Analysis, By Application (Batteries, Ceramics & Glass, Lubricants, Polymer Production, Air Treatment, and Others), and Country Forecast, 2023-2030

The U.S. lithium chloride market size was 9.50 million tons in 2022 and is projected to grow at a CAGR of 8.2% during the forecast period.

Lithium chloride is an ionic compound with a hygroscopic nature. It is white in color and soluble in polar solvents. It is largely used for the extraction of lithium metal, which is used in several industries, including lithium-ion batteries as its major application. However, in its original form, the chloride is used for several applications, including ceramics and glass, lubricants, polymer production, air treatment, chemical synthesis, and medical, among others. Continuously growing demand for electric vehicles (e-vehicles) and the ever-growing electronics industry is anticipated to drive the U.S. lithium chloride market growth during the forecast period.

During the COVID-19 pandemic, the U.S. market witnessed a considerable negative impact owing to decreased production and demand for the product from major end-use industries. Restrictions on the movement to curb the spread of the pandemic significantly impacted the production of lithium chloride. However, the post-pandemic surge in product demand from the automotive and electronics industries is anticipated to boost the market growth significantly.

U.S. Lithium Chloride Market Trends

Rising Demand for Lithium-Ion Batteries to Present Lucrative Opportunities

To reduce carbon emissions, different countries across the globe are promoting the use of electric vehicles. Along with this, the COVID-19 pandemic has given a thrust to the already growing digitalization. This has resulted in increased demand for batteries. Lithium ion batteries have high energy density with low self-discharge making, resulting in its increasing demand for electronic devices, including laptops, mobiles, tablets, notepads, and electric vehicles where the size and electron density of a battery play an important role. Therefore, the increasing demand for lithium-ion batteries is anticipated to present lucrative opportunities for the U.S. lithium chloride market.

U.S. Lithium Chloride Market Growth Factors

Growing Automotive Industry to Drive the Market Expansion

The U.S. is witnessing significant growth in the automotive industry with considerable technological advancements, including the development of lightweight e-vehicles.  The weight of an electric vehicle plays an important role in determining its efficiency, which largely depends on the size of the battery used. Lithium–ion batteries have emerged as a suitable choice for e-vehicles owing to their higher energy density, which enables higher charging capacity in a smaller size. Unlike other batteries, lithium-ion batteries have very low self-discharge and very low maintenance, pushing their demand for the newly developed e-vehicles high.

In the automotive industry, lithium chloride is widely used as an aluminum brazing flux in vehicle components. It is one of the most hygroscopic materials, is widely used in industrial drying and air conditioning systems. The compound is also widely used in the manufacturing of all-purpose high-temperature lubricants used in the automotive industry.  Therefore, the continuously growing automotive sector is anticipated to drive the U.S. lithium chloride market.

RESTRAINING FACTORS

Continuously Rising Prices to Limit Market Growth

The world has very limited resources of lithium chloride located in selective regions, including Bolivia, Argentina, and Chile. However, there is a continuous increase in product demand owing to a tremendous rise in the demand for lithium-ion batteries. The rising demand-supply gap is resulting in a continuous surge in the product prices. Rising prices are causing the end-use industries to use substitutes, including lithium carbonate and lithium hydroxide, restraining the growth of the market.

U.S. Lithium Chloride Market Segmentation Analysis

By Application Analysis

Based on application, the market is segmented into batteries, ceramics & glass, lubricants, polymer production, air treatment, and others.

The batteries segment held a dominant U.S. lithium chloride market share in 2022 owing to its higher demand in manufacturing of lithium-ion batteries, which are extensively used in electronic devices and electric vehicles. Lithium-ion batteries offers several advantages including higher energy density, longer lifespan, and faster charging compared to other battery chemistries. These advantages offered bt the lithium–ion battery are driving its demand for electric vehicles, renewable energy storage systems, and portable electronic devices including smartphones, laptops, tablets and wearable devices. Therefore, growing automotive and electronics industries in the country are a major factor driving product demand for lithium-ion battery production.

The product is also witnessing a significant demand from ceramic and glass applications. In ceramics & glass application, it is used to reduce sintering time and sintering temperature. The product use in the application helps improve the refraction and strength of the final products and is expected to drive the segment growth.

The rising product adoption for the polymerization of monofunctional units, when specific molecular weight and molecular architectures are required, it will drive the polymer production segment growth.

List of Key Companies in U.S. Lithium Chloride Market

Key players operating in the U.S. lithium chloride market have considerable production capacities. Prominent players in the market include Albemarle Corporation, Nippon Chemical Industrial CO., LTD., HARSHIL INDUSTRIES, Alfa Aesar, Honeywell International, LEVERTON HELM LTD, Suzhou Huizhi Lithium Energy Material Co. Ltd., and others. Major players are using different strategies to strengthen their market positions. Key players are focusing on securing supply agreements with raw material suppliers and major end-users in the industry.

LIST OF KEY COMPANIES PROFILED:

• Albemarle Corporation. (U.S.)


• Honeywell International (U.S.)


• Nippon Chemical Industrial CO., LTD. (Japan)


• HARSHIL INDUSTRIES (India)


• Alfa Aesar (China)


• LEVERTON HELM LTD (U.K.)


• Suzhou Huizhi Lithium Energy Material Co. Ltd. (China)


• TOKYO CHEMICALS (Japan)


• LOBA CHEMIE (India)


• Altura Mining (Australia)


• Jiangxi Ganfeng Lithium Co. Ltd. (China)


• Arena Minerals Inc. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• October 2022: Albemarle Lithium U.K. Limited, a subsidiary company of Albemarle Corporation, announced the acquisition of Guangxi Tianyuan New Energy Materials Co., Ltd. The newly acquired company is anticipated to enhance its manufacturing capacity and significantly strengthen its market position.


• September 2020: Albemarle Corporation announced its partnership with the U.S. Department of Energy for cooperation in lithium research projects. The partnership is anticipated to enable the efficient utilization of the lithium brine resource in the Clayton Valley of Nevada.

REPORT COVERAGE

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The study report thoroughly examines key factors, such as leading companies, products, and applications. It also provides information on market trends and highlights significant industry advancements. The study includes different variables that have contributed to the market growth in recent years. It examines the industry's newest market dynamics, opportunities, historical data, and revenue growth estimates at the country level.

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