SHANGHAI, Dec 7 (SMM)  –  The five-year compound growth rate of global lithium carbonate smelting capacity is expected to stand at about 20.5% while the five-year compound growth rate of global lithium hydroxide smelting capacity is estimated to be 34.3%.

Global lithium carbonate capacity will increase from 505,000 mt to 1.29 million mt from 2020 to 2025, with a five-year compound growth rate of up to 20.5%. By 2023, overseas lithium carbonate production capacity is likely to exceed domestic lithium carbonate capacity, and overseas markets will focus on salt lake capacity expansion.

From 2020 to 2025, the global lithium hydroxide production capacity will increase from 299,000 mt to 1.304 million mt, with a five-year compound growth rate of 34.3%. The global high nickel growth trend is temporarily squeezed by the demand for LFP, but the demand from terminal automobiles with high endurance will still be the main direction of long-term development. Therefore, the demand for lithium hydroxide, the upstream lithium raw material, will increase significantly, and smelters will also expand their production.