Lithium Compounds: A Vital Link in the Global Lithium-ion Battery Supply Chain

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October 22, 2024--Researched by Industrial Info Resources (Sugar Land, Texas)--In recent years, lithium compounds have garnered significant attention as the world increasingly shifts toward a more sustainable energy landscape. As a critical component in lithium-ion batteries, lithium compounds play a crucial role in powering green technologies, highlighting their essential role in the supply chain.

Lithium compounds serve as both cathode materials and electrolytes in lithium-ion batteries, facilitating the movement of lithium ions between the anode and cathode. Common lithium salts, such as lithium hexafluorophosphate (LiPF6), are used as electrolytes, while lithium carbonate and lithium hydroxide are key components in the cathodes of lithium-ion batteries.

The burgeoning demand for lithium-ion batteries is primarily driven by the acceleration of electric vehicle (EV) adoption to meet net zero goals. According to the International Energy Agency (IEA), the number of EVs is expected to grow by 240 million by 2030. Owing to this surge, the EV sector alone is expected to account for more than 90% of the total lithium demand in the future.

Additionally, the IEA's Renewables 2024 report projects that by the end of this decade, the share of wind and solar photovoltaic (PV) energy in global electricity generation will double to 30%, further amplifying the demand for lithium compounds in battery storage applications, as efficient energy storage becomes essential for managing the variability of renewable energy sources.

Industrial Info is tracking 140 projects worth more than US$13 billion geared for the production of various lithium compounds. Notably, more than 50% of this spending is aimed at grassroot projects while unit addition projects account for about 38%.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Chemical Processing Project Database can click here for a list of detailed project reports.

About 26% of the total investment is in the planning stages, 32% in the engineering phase, and more than 40% is currently undergoing construction and is scheduled to reach completion between 2025 and 2029.

Asia leads the way with investments worth US$12 billion, accounting for more than 80% in global spending. The spending in the region is largely driven by China with investments worth more than US$11 billion. Jiangsu Xintai Materials Technology Company Limited (Jiangsu Province) and Guangzhou Tinci High-tech Materials Company Limited (Guangzhou) are the top two companies in China that are investing significantly in the production of lithium compounds.

Jiangsu Xintai Materials Technology Company Limited is investing US$418.8 million to produce 30,000 metric tons per year of lithium hexafluorophosphate. The plant is currently under construction and is scheduled for completion in June 2025. Subscribers can click here for the project report.

North America is driving a spending of approximately US$1.35 billion. The U.S. is the sole driver of the spending in the region and is mainly focused on the production of battery electrolytes with seven projects in the pipeline. With a related investment of US$350 million, the Shenzhen CAPCHEM (Xinzhoubang) Technology Company Limited (Shenzhen City, China) is planning to construct a grassroot 200,000-ton-per-year lithium battery solvent compounds and 100,000-ton-per-year electrolyte plant in Saint Amant, Louisiana. Subscribers can click here for the project report.

Europe follows with investments worth US$602.9 million, led by the U.K. with investments worth US$391 million for the production of lithium salts such as lithium hexafluorophosphate, lithium hydroxide monohydrate and lithium chloride. With an investment of US$100.5 million, Foosung Poland Sp Zoo (Katowice, Poland) is constructing a grassroot plant to produce approximately 12,000 metric tons per year of lithium hexafluorophosphate that will later be used in the production of lithium-ion batteries. Subscribers can click here for the project report.

Subscribers can click here for the project reports mentioned in this article and click here for the related plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).