Lithium Chloride Market is Predicted to Reach US$ 2.6 Billion by 2035, Expanding at a CAGR of 6.3% | Fact.MR

The lithium chloride market is worth USD 1.5 billion in 2025. It will grow at a CAGR of 6.3% and be worth USD 2.6 billion as per the estimates of Fact.MR in 2035.

In 2024, the market saw a phase of steady growth, driven by demand-led developments and not large-scale, sweeping trends. Among the top growth drivers was the ongoing rises in lithium-ion battery production, as lithium chloride was an important precursor to the synthesis of lithium metal anodes. This rise was inseparably tied to the growing use of electric vehicles (EVs) and the expanding consumer electronics market.

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Segment-wise Analysis

By Form: The solid form is anticipated to be the most lucrative with a CAGR of 6.5% (2025-2035), owing to its stability, convenient handling, and efficiency in brazing fluxes, chemical synthesis, and dehumidification.

By Type: The anhydrous category is anticipated to advance at a high CAGR of 8.2%, owing to its vital involvement in moisture-sensitive products such as lithium-ion battery production and organic synthesis.

By Purity: The 5N purity segment will grow at a CAGR of 8.5%, being preferred for its use in high-performance applications in electronics, pharmaceuticals, and battery manufacturing.

By Function: The dehumidifier segment dominates the market with a CAGR of 6.3%, owing to its superior moisture absorption, making it suitable for safeguarding equipment and materials.

By Application: Lithium chloride is an important component in the manufacture of lithium-ion batteries as a precursor in the synthesis of high-purity lithium salts utilized in EVs, portable electronics, and energy storage devices.

Country-wise Analysis

In the United States, the sector is expected to grow at a CAGR of 6.4% over the forecast period from 2025 to 2035. The sector in the U.S. is expected to witness a consistent growth curve with the growth in the electric vehicle (EV) market and developments in battery technology.

The UK's sales are expected to record a CAGR of 5.8% during the forecast period. The government plans to phase out internal combustion engine cars by 2030 have spurred investment in electric vehicle charging infrastructure and battery manufacturing.

The market is forecast to expand at a growth rate of 6.0% CAGR in France during the period of evaluation. Support from the government through EV uptake and investment in battery production facilities is a key driver of lithium chloride demand.

In Germany, the sector is expected to register a CAGR of 6.2% during 2025-2035, driven by the country's leadership in car manufacturing and engineering capabilities. The transition to electric mobility, supplemented by government incentives and stringent emission standards, is fueling the demand for lithium-ion batteries.

Japanese sales will most probably increase during the period between 2025 and 2035 at a CAGR of 6.6% due to the leading position of Japan in the automotive and electronics sector. Support provided by the government through promotion to implement EV take-up and R&D on advanced battery technologies is major growth driver.

Competitive Landscape

The sector is concentrated with dominance by a few vertically integrated players with strong dominance in lithium extraction, processing, and sales. Large players such as Albemarle Corporation, SQM, Ganfeng Lithium, and Tianqi Lithium possess enormous market shares owing to their large operations and investment plans.

In 2024, the industry witnessed significant consolidation measures. One of them was the acquisition of Arcadium Lithium by Rio Tinto in October 2024 for USD 6.7 billion, which was completed in March 2025. Arcadium was created earlier in January 2024 through the merger of Livent and Allkem, which became the third-largest lithium producer in the world. The transaction is an indication of the trend where major players are turning towards acquiring and merging other companies to consolidate market share.

In addition, technological innovation has played a central role. International Battery Metals (IBAT) rolled out a mobile direct lithium extraction (DLE) technology in Utah in July 2024 with the aim of going into commercial production within weeks. The technology is a move towards cleaner and more efficient lithium extraction techniques.

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Key Players

Hefei TNJ Chemical Industry Co., Ltd.
Leverton
Mody Chemi Pharma Ltd.
Muby Chemicals
Nippon Chemical Industrial
Otto Chemie Pvt Ltd
Sontara Organo Industries
TCI Chemical
Others

Segmentation

By Form :
Solid
Liquid
By Type :
Hydrate
Anhydrous
By Purity :

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This release was published on openPR.