Lithium Oxide, Hydroxide and Carbonate Market

The market for lithium oxide, hydroxide, and carbonate is expected to experience a downward consumption trend over the period from 2022 to 2030, with forecasted decreases in market volume and value. In 2022, global consumption and market size surged significantly, with China, South Korea, and Japan leading in consumption volumes and market value. The largest product by consumption volume was lithium carbonate, while lithium oxide and carbonate were the largest products by market size. Chile remained the largest producer and exporter of lithium products, while China was the key importer. Import and export prices varied by product type and country, with notable growth and fluctuations observed over the years.

Market Forecast

The market for lithium oxide, hydroxide and carbonate is expected to start a downward consumption trend over the next eight-year period. The performance of the market is forecast to decrease slightly, with an anticipated CAGR of -5.2% for the eight-year period from 2022 to 2030, which is projected to depress the market volume to 1.1M tons by the end of 2030.

In value terms, the market is forecast to contract with an anticipated CAGR of -0.3% for the period from 2022 to 2030, which is projected to bring the market value to $19.8B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Lithium Oxide, Hydroxide and Carbonate

Global lithium oxide, hydroxide and carbonate consumption surged to 1.6M tons in 2022, picking up by 241% against 2021 figures. Overall, consumption posted a significant increase. As a result, consumption reached the peak volume and is likely to continue growth in the immediate term.

The size of the market for lithium oxide, hydroxide and carbonates worldwide soared to $20.3B in 2022, growing by 148% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption enjoyed buoyant growth. As a result, consumption reached the peak level and is likely to continue growth in the immediate term.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (812K tons), South Korea (429K tons) and Japan (199K tons), with a combined 88% share of global consumption.

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by South Korea (with a CAGR of +40.3%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($7.1B), South Korea ($4.9B) and Australia ($3.8B) appeared to be the countries with the highest levels of market value in 2022, with a combined 78% share of the global market.

South Korea, with a CAGR of +49.2%, recorded the highest rates of growth with regard to market size among the main consuming countries over the period under review, while market for the other global leaders experienced more modest paces of growth.

The countries with the highest levels of lithium oxide, hydroxide and carbonate per capita consumption in 2022 were Australia (1,624 kg per 1000 persons), Japan (1,594 kg per 1000 persons) and China (572 kg per 1000 persons).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the leading consuming countries, was attained by South Korea (with a CAGR of +39.8%), while consumption for the other global leaders experienced more modest paces of growth.

Consumption By Type

Lithium carbonate (1.5M tons) constituted the product with the largest volume of consumption, comprising approx. 75% of total volume. Moreover, lithium carbonate exceeded the figures recorded for the second-largest type, lithium oxide (496K tons), threefold.

From 2012 to 2022, the average annual rate of growth in terms of the volume of lithium carbonate consumption totaled +29.2%.

In value terms, the largest types of lithium oxide, hydroxide and carbonates in terms of market size were lithium carbonate ($10.2B) and lithium oxide ($9.2B).

Among the main consumed products, lithium carbonate, with a CAGR of +29.9%, saw the highest rates of growth with regard to market size over the period under review.

Production

World Production of Lithium Oxide, Hydroxide and Carbonate

For the seventh consecutive year, the global market recorded growth in production of lithium oxide, hydroxide and carbonates, which increased by 236% to 1.5M tons in 2022. Over the period under review, production enjoyed a significant increase. As a result, production attained the peak volume and is likely to continue growth in the immediate term.

In value terms, lithium oxide, hydroxide and carbonate production shrank to $3.3B in 2022 estimated in export price. In general, production enjoyed a prominent expansion. The growth pace was the most rapid in 2014 when the production volume increased by 51%. Global production peaked at $4.1B in 2019; however, from 2020 to 2022, production remained at a lower figure.

Production By Country

Chile (1.2M tons) remains the largest lithium oxide, hydroxide and carbonate producing country worldwide, comprising approx. 80% of total volume. Moreover, lithium oxide, hydroxide and carbonate production in Chile exceeded the figures recorded by the second-largest producer, China (156K tons), eightfold. The third position in this ranking was taken by Australia (41K tons), with a 2.7% share.

From 2012 to 2022, the average annual rate of growth in terms of volume in Chile amounted to +33.7%. In the other countries, the average annual rates were as follows: China (+3.2% per year) and Australia (+12.4% per year).

Production By Type

Lithium carbonate (1.3M tons) constituted the product with the largest volume of production, accounting for 71% of total volume. Moreover, lithium carbonate exceeded the figures recorded for the second-largest type, lithium oxide (542K tons), twofold.

For lithium carbonate, production increased at an average annual rate of +28.7% over the period from 2012-2022.

In value terms, lithium oxide ($1.9B) and lithium carbonate ($1.4B) appeared to be the products with the highest levels of production in 2022.

In terms of the main produced products, lithium carbonate, with a CAGR of +9.4%, recorded the highest rates of growth with regard to market size over the period under review.

Imports

World Imports of Lithium Oxide, Hydroxide and Carbonate

For the ninth consecutive year, the global market recorded growth in supplies from abroad of lithium oxide, hydroxide and carbonates, which increased by 520% to 1.9M tons in 2022. In general, imports posted significant growth. As a result, imports reached the peak and are likely to continue growth in the immediate term.

In value terms, lithium oxide, hydroxide and carbonate imports soared to $16.1B in 2022. Overall, imports recorded a significant increase. As a result, imports reached the peak and are likely to continue growth in the immediate term.

Imports By Country

China was the key importing country with an import of about 1.1M tons, which recorded 56% of total imports. It was distantly followed by South Korea (466K tons) and Japan (200K tons), together constituting a 35% share of total imports. The Netherlands (35K tons) held a minor share of total imports.

China was also the fastest-growing in terms of the lithium oxide, hydroxide and carbonates imports, with a CAGR of +54.2% from 2012 to 2022. At the same time, the Netherlands (+42.4%), South Korea (+41.1%) and Japan (+27.8%) displayed positive paces of growth. China (+43 p.p.) and South Korea (+10 p.p.) significantly strengthened its position in terms of the global imports, while Japan saw its share reduced by -5.9% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, China ($6.8B), South Korea ($5.4B) and Japan ($2.2B) constituted the countries with the highest levels of imports in 2022, together comprising 90% of global imports.

China, with a CAGR of +58.9%, recorded the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Imports By Type

Lithium carbonate was the main imported product with an import of around 1.5M tons, which amounted to 77% of total imports. It was distantly followed by lithium oxide (434K tons), creating a 23% share of total imports.

Imports of lithium carbonate increased at an average annual rate of +32.9% from 2012 to 2022. At the same time, lithium oxide (+36.9%) displayed positive paces of growth. Moreover, lithium oxide emerged as the fastest-growing type imported in the world, with a CAGR of +36.9% from 2012-2022. From 2012 to 2022, the share of lithium oxide increased by +4.8 percentage points.

In value terms, the largest types of imported lithium oxide, hydroxide and carbonates were lithium carbonate ($10.6B) and lithium oxide ($5.5B).

Lithium oxide, with a CAGR of +44.8%, saw the highest growth rate of the value of imports, among the main imported products over the period under review.

Import Prices By Type

The average import price for lithium oxide, hydroxide and carbonates stood at $8,412 per ton in 2022, shrinking by -7.2% against the previous year. Over the period under review, the import price, however, posted a pronounced expansion. The most prominent rate of growth was recorded in 2017 when the average import price increased by 38% against the previous year. Global import price peaked at $13,291 per ton in 2018; however, from 2019 to 2022, import prices remained at a lower figure.

Prices varied noticeably by the product type; the product with the highest price was lithium oxide ($12,575 per ton), while the price for lithium carbonate totaled $7,188 per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by lithium oxide (+5.8%).

Import Prices By Country

The average import price for lithium oxide, hydroxide and carbonates stood at $8,412 per ton in 2022, dropping by -7.2% against the previous year. Over the period under review, the import price, however, showed notable growth. The most prominent rate of growth was recorded in 2017 an increase of 38%. Global import price peaked at $13,291 per ton in 2018; however, from 2019 to 2022, import prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was South Korea ($11,628 per ton), while China ($6,341 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by South Korea (+8.2%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Lithium Oxide, Hydroxide and Carbonate

For the ninth consecutive year, the global market recorded growth in shipments abroad of lithium oxide, hydroxide and carbonates, which increased by 535% to 1.8M tons in 2022. Overall, exports continue to indicate significant growth. As a result, the exports attained the peak and are likely to continue growth in the immediate term.

In value terms, lithium oxide, hydroxide and carbonate exports soared to $14.7B in 2022. In general, exports showed a significant increase. As a result, the exports reached the peak and are likely to continue growth in the immediate term.

Exports By Country

Chile was the major exporter of lithium oxide, hydroxide and carbonates in the world, with the volume of exports reaching 1.2M tons, which was near 67% of total exports in 2022. It was distantly followed by China (415K tons), committing a 23% share of total exports. The following exporters - the Netherlands (41K tons), South Korea (36K tons) and Belgium (33K tons) - each resulted at a 6.1% share of total exports.

From 2012 to 2022, average annual rates of growth with regard to lithium oxide, hydroxide and carbonate exports from Chile stood at +35.1%. At the same time, South Korea (+57.3%), the Netherlands (+53.6%), China (+51.7%) and Belgium (+16.0%) displayed positive paces of growth. Moreover, South Korea emerged as the fastest-growing exporter exported in the world, with a CAGR of +57.3% from 2012-2022. From 2012 to 2022, the share of China, Chile, the Netherlands and South Korea increased by +17, +6.4, +1.7 and +1.6 percentage points, respectively.

In value terms, the largest lithium oxide, hydroxide and carbonate supplying countries worldwide were Chile ($8.3B), China ($4.6B) and South Korea ($437M), with a combined 90% share of global exports.

Among the main exporting countries, South Korea, with a CAGR of +69.9%, saw the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Exports By Type

Lithium carbonate was the key type of lithium oxide, hydroxide and carbonates in the world, with the volume of exports finishing at 1.3M tons, which was approx. 73% of total exports in 2022. It was distantly followed by lithium oxide (480K tons), committing a 27% share of total exports.

From 2012 to 2022, average annual rates of growth with regard to lithium carbonate exports of stood at +32.7%. At the same time, lithium oxide (+36.9%) displayed positive paces of growth. Moreover, lithium oxide emerged as the fastest-growing type exported in the world, with a CAGR of +36.9% from 2012-2022. Lithium oxide (+5.6 p.p.) significantly strengthened its position in terms of the global exports, while lithium carbonate saw its share reduced by -5.6% from 2012 to 2022, respectively.

In value terms, lithium carbonate ($9.6B) and lithium oxide ($5.2B) were the products with the highest levels of exports in 2022.

Among the main exported products, lithium oxide, with a CAGR of +43.5%, saw the highest growth rate of the value of exports, over the period under review.

Export Prices By Type

In 2022, the average export price for lithium oxide, hydroxide and carbonates amounted to $8,169 per ton, approximately mirroring the previous year. Over the period under review, the export price, however, enjoyed notable growth. The pace of growth appeared the most rapid in 2016 an increase of 45%. Over the period under review, the average export prices attained the maximum at $11,603 per ton in 2018; however, from 2019 to 2022, the export prices failed to regain momentum.

Average prices varied somewhat amongst the major exported products. In 2022, the product with the highest price was lithium oxide ($10,771 per ton), while the average price for exports of lithium carbonate totaled $7,225 per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by lithium oxide (+4.8%).

Export Prices By Country

The average export price for lithium oxide, hydroxide and carbonates stood at $8,169 per ton in 2022, stabilizing at the previous year. In general, the export price, however, posted a noticeable expansion. The most prominent rate of growth was recorded in 2016 an increase of 45% against the previous year. The global export price peaked at $11,603 per ton in 2018; however, from 2019 to 2022, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was South Korea ($12,022 per ton), while Chile ($6,839 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by South Korea (+8.0%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform