Chile Lithium Market: Industry Analysis and Forecast (2021-2027) by Product Type and Region

Chile Lithium Market Definition:

The report seeks to examine the market trends, analyse the key players and recognize key opportunities while understanding the nature of the market in the local narrative. The report also seeks to understand the different segments of the products used in the market, and their preferences in the population and make a prediction on future trends through our expert analysts. The report estimates the market size of the product from the global metrics.

Chile is one of the three countries that make up the world’s Lithium Triangle. Only led by Argentina which is another country in the triangle, Chile is the world’s second-largest producer of Lithium and makes up 22% of the global supply of Lithium. The element is a key component in Lithium-Ion type of batteries which are used extensively in smartphones, electronic gadgets and electric vehicles. The latter application is considered to be the solution that drives the zero-emission goal to control global warming by replacing conventional internal-combustion engine based cars. The enormous increase in demand over the forecast period is predicted to significantly expand the size of the Lithium Market in the Country.

The country possesses the largest mine reserves of Lithium. The mineral is mined through underground brine water which is rich in the mineral.

But certain socio-political issues and environmental factors have limited the use of the country’s immensely valuable natural resources. These include the environmental degradation of the water-scarce areas caused because of mining activities, as well as the deteriorating impact of the same on the indigenous Chilean communities of the Atacama desert, the region rich in Lithium mineral reserves.

The growing demand for the mineral to source the production of batteries for the ever-increasing smartphone, electronic and electric vehicle market has ensured the growth of the Lithium Market in the country.

Chile Lithium Market Dynamics:

The global demand for Lithium is expected to almost triple during the forecast period. From nearly 500 thousand metric tonnes in 2021 to nearly 1400 tons of Lithium Carbonate, the final product from which Lithium metal is extracted by the end of 2027.

Currently, two companies, Sociedad Quimica y Minera de Chile S.A. (SQM) and Albemarle Chile Limited are the dominant players in Lithium extraction in the region. These companies are among the world leaders in the production of Lithium globally. To meet the global increase in demand for the mineral for battery production, Albemarle and SQM have both upscaled their operations and increased the spans of their Lithium extraction regions.

The market opportunity has brought in international investments from international corporates such as Canada based LiCo Energy and Metals and Wealth Minerals. The expansion of these companies has met with widespread opposition from Resistance from local communities because of disruption caused by the mining activities and the damage caused to the environmental ecosystems. Recently, SQM has allocated a budget of USD $ 900 Mn. to expand its Lithium Carbonate and Hydroxide production to 210,000 metric tonnes by early 2023 from it’s current production cap of 180,000 metric tonnes.

Chile Lithium Market Segment Analysis:

By Type, the Chile Lithium Market can be segmented into Lithium Carbonate, Lithium Hydroxide and others. Lithium Carbonate held the largest market share in the year 2021 at approximately 60%. It is preferably used for processing metal oxides. It is first step in the extraction from brines, the primary method of lithium extraction in Chile, therefore making it the primary product that the country produces. It is also used in the treatment of medical conditions such as cluster headaches and bipolar disorders. Lithium Hydroxide is expected to grow the most during the forecast period because of its usage in Li-Ion batteries, electric vehicles and energy storage systems.

The objective of the report is to present a comprehensive analysis of the Chile Lithium Market to the stakeholders in the industry. The report provides trends that are most dominant in the Chile Lithium Market and how these trends will influence new business investments and market development throughout the forecast period. The report also aids in the comprehension of the Chile Lithium Market dynamics and competitive structure of the market by analyzing market leaders, market followers, and regional players.

The qualitative and quantitative data provided in the Chile Lithium Market report is to help understand which market segments, regions are expected to grow at higher rates, factors affecting the market, and key opportunity areas, which will drive the industry and market growth through the forecast period. The report also includes the competitive landscape of key players in the industry along with their recent developments in the Chile Lithium Market. The report studies factors such as company size, market share, market growth, revenue, production volume, and profits of the key players in the Chile Lithium Market.

The report provides Porter's Five Force Model, which helps in designing the business strategies in the market. The report helps in identifying how many rivals are existing, who they are, and how their product quality is in the Chile Lithium Market. The report also analyses if the Chile Lithium Market is easy for a new player to gain a foothold in the market, do they enter or exit the market regularly if the market is dominated by a few players, etc.

The report also includes a PESTEL Analysis, which aids in the development of company strategies. Political variables help in figuring out how much a government can influence the Chile Lithium Market. Economic variables aid in the analysis of economic performance drivers that have an impact on the Chile Lithium Market. Understanding the impact of the surrounding environment and the influence of environmental concerns on the Chile Lithium Market is aided by legal factors.

Chile Lithium Market Scope:

Chile Lithium Market Key Players:  

• Sociedad Quimica y Minera de Chile S.A. (Chile)
• Albemarle Litio Ltda. (Chile)
• Li3 Energy Inc. (Chile)
• Sociedad Chilena del Litio Ltda. (Chile)
• Rockwood Lithium Isidora (Chile)
• Lithium Power International (Chile)
• Lomiko Metals Inc. (Canada)
• Talison Lithium (Australia)
• LiCo Energy and (Canada)
• Metals and Wealth Minerals (Canada)