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

• US
• Canada

Europe

• Germany
• UK
• France

Middle East and Africa

South America

• Brazil

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.