Lithium Compounds Market Overlook:
Lithium Compounds Market size was valued at USD 10.1 billion in 2024 and is projected to reach USD 31.7 billion by the end of 2034, rising at a CAGR of 12.5% during the forecast period 2025-2034. In 2025, the industry size of lithium compounds is assessed at USD 11.5 billion.
The main factor fueling growth in the lithium compounds market is the surging demand from the electric vehicle and battery energy storage sectors. As per the Department of Energy's forecasts, global installations of EV batteries saw a 46% increase year-over-year in 2024, leading to a 36% rise in the use of lithium compounds. In 2024, the U.S. imported 17,000 tons of lithium carbonate, which is a 4.1% drop in volume, but a 41.6% increase compared to 2020 figures. Additionally, government incentives from the Inflation Reduction Act have boosted domestic chemical production and expanded recycling capabilities.
The supply chains for raw materials are still concentrated, with Australia providing more than 51% of spodumene and China handling over 62% of battery-grade lithium refining. In 2022, exports of lithium carbonate from the U.S. reached USD 32.2 million, with Canada, Germany, and Japan identified as the primary destinations. The Producer Price Index (PPI) for battery manufacturing in the U.S. saw a slight increase to 196.5 in 2024, up from 189.13 in 2022. Federal RDD investments went beyond USD 4 billion through the DOE’s critical minerals programs, which are aimed at improving refining technologies and setting up assembly lines to capture domestic value.
