Lithium Carbonate Market: Growth, Trends, and Key Insights 2025-2029
The Lithium Carbonate Market is projected to grow by USD 4.98 billion from 2025 to 2029, with a CAGR of 14.1%. The market expansion is driven by the rising demand for lithium-ion batteries, especially in electric vehicles (EVs). While growth opportunities are abundant, challenges such as EV charging infrastructure shortages and high production costs remain key barriers.

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Market Segmentation
By Application
- Batteries
- Ceramics and Glass
- Cement and Aluminum
- Others
By Distribution Channel
- Direct Sale
- Indirect Sale
By Geography
APAC
- China
- India
- Japan
- South Korea
North America
Europe
Middle East and Africa
South America
Market Insights by Segment
Batteries Segment
The batteries segment is expected to experience significant growth throughout the forecast period. Lithium carbonate is an essential material for cathodes in lithium-ion batteries used in EVs, grid storage, and consumer electronics. High-purity lithium carbonate (99.9% for EV-grade and 99.5% for battery-grade) is particularly valued for its electrochemical properties.
- Lithium cobalt oxide batteries using lithium carbonate provide high energy density and stable capacity, making them ideal for smartphones, laptops, and digital cameras.
- In 2019, the batteries segment was valued at USD 2.09 billion, with a gradual increase expected during the forecast period.
Regional Market Trends
APAC (73% market growth contribution)
- Lithium carbonate is critical for lithium-ion battery production, with demand surging in China and India due to EV adoption and renewable energy projects.
- India’s Ministry of New and Renewable Energy reported 13.5 GW of new renewable energy capacity in January 2024, with a USD 10 billion investment, positioning the country as a global leader in renewable energy adoption.
North America
- The US and Canada are witnessing increased investments in lithium battery technologies due to EV expansion and energy storage projects.
Europe
- Countries such as Germany, the UK, and France are implementing strict environmental policies, boosting the demand for sustainable lithium-ion batteries.
South America
- Brazil is emerging as a key lithium producer, supplying the growing EV and battery manufacturing sectors.
Market Dynamics
Drivers
Increasing Demand for Lithium-Ion Batteries in EVs
- Lithium carbonate is crucial in cathode materials for lithium-ion batteries in EVs, hybrid EVs, and plug-in hybrids.
- Rising environmental concerns and stringent fuel norms are accelerating EV adoption, driving lithium carbonate demand.
Role in Mood-Stabilizing Medications
- Lithium carbonate remains a primary component in bipolar disorder, schizophrenia, and depression treatments.
- It helps regulate dopamine and serotonin levels, though side effects such as dizziness, nausea, and lithium toxicity require regular blood tests for monitoring.
Trends
Battery Recycling Initiatives
- Recycling lithium-ion batteries is a growing trend as manufacturers focus on sustainability and reducing raw material dependency.
- Innovations in battery recycling technologies are expected to support the lithium carbonate supply chain.
Challenges
Shortage of EV Charging Stations
- A lack of charging infrastructure is slowing EV adoption, impacting lithium-ion battery demand.
- Governments and private players are investing in charging networks, but expansion remains uneven across regions.
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Key Players
- Albemarle Corp.
- Arcadium Lithium
- Ascend Elements Inc.
- Axiom Chemicals Pvt. Ltd.
- Basstech International
- Bisley and Co. Pty. Ltd.
- Celtic Chemicals Ltd.
- Eramet
- Ganfeng Lithium Group Co., Ltd
- GFS Chemicals Inc.
- HELM AG
- JIGCHEM UNIVERSAL
- Lakshita Chemicals
- Lepidico Ltd
- Merck KGaA
- Noah Chemicals
- Orocobre Ltd.
- SQM S.A.
- Stellantis NV
- Targray Technology International Inc.
- Tianqi Lithium Corp.
- ZIJIN MINING GROUP CO. LTD
Recent Developments
January 2024
- India's Ministry of New and Renewable Energy installed 13.5 GW of renewable energy capacity, with a USD 10 billion investment in lithium-ion battery storage solutions.