Lithium Carbonate Market to Register 22.74% CAGR Through 2031 as EV Battery Demand Accelerates, Says Mordor Intelligence

HYDERABAD, India, Sept. 28, 2026 /PRNewswire/ -- According to recent report from Mordor Intelligence, the global lithium carbonate market is projected to grow from 1.41 million LCE tons in 2026, to 3.93 million LCE tons by 2031. Meanwhile, the U.S. IRA provides USD 35/kWh for eligible domestic cell production and a 10% critical-minerals credit, encouraging regional supply-chain investment. China currently accounts for around 60–70% of lithium refining, while new projects in Chile and Nevada are gradually expanding supply outside China.

Lithium carbonate industry growth is being supported by the increasing use of LFP batteries, which rely on lithium carbonate, along with rising demand for energy storage. U.S. utility-scale energy storage installations are expected to reach 57.6 GWh in 2025 and could triple in 2026.

Lithium Carbonate Market Trends & Upcoming Developments

Advances in Extraction and Recycling

Direct lithium extraction is moving toward broader commercial use, with new methods helping improve recovery, reduce energy use, and lower environmental impacts. Recycling is also becoming an important part of the supply chain by recovering lithium from used battery materials.

Lithium Price and Supply Challenges

Lithium carbonate prices remain highly sensitive to changes in battery demand, mine production, and supply availability. Frequent price movements can affect producer margins and make investment and production planning more challenging.

Refining Capacity and Regional Constraints

Lithium processing remains concentrated in a few regions, creating supply-chain risks and dependence on imported raw materials. New refining projects outside China are also facing lengthy approvals, technical requirements, and shortages of skilled workers, which can slow capacity expansion.

Lithium Carbonate Industry Segments

By Grade

• Battery Grade
• Technical Grade
• Industrial Grade

By Source

• Brine
• Spodumene (Hard-rock)
• Lepidolite/Clay
• Recycled Lithium Carbonate

By Application

• Li-ion Battery
• Glass and Ceramics
• Pharmaceuticals and Dental
• Aluminum Production
• Cement Industry
• Other Applications

By End-user Industry

• Automotive
• Consumer Electronics
• Energy Storage Systems
• Industrial and Metallurgy
• Healthcare
• Construction

By Geography

• Asia-Pacific
• North America
• Europe
• South America
• Middle-East and Africa

For a full breakdown of lithium carbonate market, segmentation data, and competitive intelligence, access the details of the Mordor Intelligence report: https://www.mordorintelligence.com/industry-reports/lithium-carbonate-market?utm_source=prnewswire 

Lithium Carbonate Market Share by Region:

Asia-Pacific Lithium Carbonate Landscape

Asia-Pacific remains the main hub for lithium carbonate production and processing, supported by China's well-developed refining and battery manufacturing network. Japan and South Korea continue to depend heavily on imported battery-grade lithium carbonate, leaving them exposed to changes in regional supply policies.

North America Lithium Carbonate Outlook

North America is expanding its lithium carbonate capacity as government incentives encourage local mining, refining, and battery production. New projects and supply agreements are supporting domestic supply, although permitting and development timelines remain challenges.

"As the lithium carbonate market expands, growing demand for lithium-ion batteries, electric vehicles, and energy storage systems is creating opportunities across the battery supply chain. Increasing adoption of LFP battery technology and investments in lithium extraction and refining are also supporting market growth. Mordor Intelligence applies a rigorous research approach combining primary interviews with reliable secondary sources to help stakeholders assess market trends, applications, regional demand, production sources, and the competitive landscape through objective, data-backed insights," says Himanshu Vasisht, Senior Research Manager, Mordor Intelligence.

Access the complete Japan regional analysis for a deeper understanding of Industry trends: https://www.mordorintelligence.com/ja/industry-reports/lithium-carbonate-market?utm_source=prnewswire

Lithium Carbonate Companies

• Albemarle Corporation
• Ganfeng Lithium Group Co., Ltd
• Jiangxi Jiuling Lithium Co., Ltd.
• LevertonHELM Limited
• Lithium Americas Corp.
• Lithium Argentina AG
• Nemaska Lithium
• Pilbara Minerals Limited
• Rio Tinto
• Shandong Ruifu Lithium Co., Ltd.
• Shengxin Lithium Energy Group Co., Ltd.
• SQM
• Tianqi Lithium Corporation
• Xinjiang Zhicun Lithium Industry Co.

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