LITHIUM COMPOUND MARKET Size and trends

Lithium Compound Market Size and Trends

The lithium compounds market is estimated to be valued at USD 8.78 Bn in 2025 and is expected to reach USD 21.45 Bn by 2032, growing at a compound annual growth rate (CAGR) of 13.6% from 2025 to 2032.

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The demand for lithium compounds is projected to grow significantly during the forecast period owing to the increasing sales of electric vehicles worldwide. Key factors, such as stringent emission norms, rising environmental concerns, and supportive government policies and incentives, are favoring the adoption of electric mobility over conventional vehicles. As lithium compounds play a key role in lithium-ion batteries that power electric vehicles, their demand is expected to rise in tandem with EV sales over the next few years.

Rising electrification in the automotive industry

The automotive sector has been a major driving force contributing to the growth of the global lithium compounds market. For instance, according to data published by the Automobile Sector resulted in 5.41% of the total FDI inflow as per the September 2023 DPIIT Report. The lithium compounds market is expected to witness significant growth in the coming years due to the rising demand for lithium-ion batteries from the automotive industry. There is a global push for more environment-friendly vehicles and a growing concern about emissions from internal combustion engine vehicles. Many countries have announced plans to ban the sales of new gasoline and diesel cars and are encouraging producers to shift towards electric vehicles. Major automakers are heavily investing in electric vehicle development and production to cater to this growing demand.