Home Speciality Chemicals Lithium Fluoride Market Size, Share And Growth Report, 2031

Lithium Fluoride Market

Lithium Fluoride Market Size, Share & Trends Analysis Report By Application (Ceramic and Glass, Nuclear Power Generation, Optics, Metallurgy Processes, Pharmaceuticals, Others), By Type (98%, 99%, 9%), By Product Type (Powder, Granule), By End-User (Glass and Optics Industries, Electronic and electrical industries, Nuclear Industry, Other) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRSC55945DR
Study Period 2019-2031 CAGR 11.7%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 562.0 million
Forecast Year 2031 Forecast Year Market Size USD 1,521.3 million
Largest Market North America Fastest Growing Market Asia Pacific
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Market Overview

The global lithium fluoride market size was valued at USD 562.0 million in 2022 and is projected to reach USD 1,521.3 million by 2031, registering a CAGR of 11.7% during the forecast period (2023-2031). Growing nuclear power generation leads to increased use of lithium fluoride in the energy industry, which drives lithium fluoride market growth.

Lithium fluoride (LiF) is a lithium and fluorine inorganic compound. It is a white, crystalline solid with a high melting point widely used in various industries. Lithium fluoride is generally considered safe under normal handling and use conditions. When exposed to strong acids, it, like many lithium compounds, can emit toxic hydrogen fluoride gas. Due to various factors, the lithium fluoride market share is expected to increase during the forecast period. Lithium fluoride plays a vital role in the Glass and ceramic industries by acting as a flux. It facilitates the melting process and improves material properties as a critical component, driving its usage and market growth in these sectors.

Another factor is the increasing demand for Lithium Fluoride in the electric vehicle (EV) industry. Lithium fluoride (LiF) is essential in producing lithium-ion batteries in electric vehicles. Growing EV sales and ongoing research on fluoride-ion batteries, which offer increased energy density and cost-efficiency, contribute significantly to market growth. Aside from EVs, the lithium fluoride market is seeing increased utilization in electronic products, driving market demand. The thriving lithium-ion battery market, fueled by the increasing use of portable electronic devices, drives up demand for LiF even more. Furthermore, the unique properties of LiF, such as its use as a flux in aluminum smelting and its role in optical coatings, increase its versatility, fostering market growth.

Highlights

  • Above 98% accounts for the largest share of the market based on type.
  • Ceramic and Glass generate the most revenue in the market by application.
  • The electrical and electronics industry holds a significant market share by end-users.
  • North America dominates the market.

Market Dynamics

Market Drivers

Nuclear Energy Demand

The primary driver of lithium fluoride demand in the nuclear industry is its use in advanced nuclear reactors, particularly molten salt reactors. Lithium fluoride is an essential component of the coolant used in these reactors, contributing to efficient heat transfer and improving reactor safety and performance. According to International Atomic Energy Agency (IAEA) reports, there is a growing trend in research and funding for advanced nuclear technologies such as molten salt reactors. Countries such as the United States, China, and others are investing in developing these technologies, causing demand for lithium fluoride to rise. Nuclear electricity production increased in 2023, owing primarily to France restarting some reactors.

Nuclear energy generated 2,545 terawatt-hours (TWh) of electricity in 2022, according to the World Nuclear Association's 2023 World Nuclear Performance Report. There were 412 operational power reactors worldwide as of September 2023, with a total electrical capacity of 368.6 GW. Furthermore, 60 reactors were under construction, 110 were planned, and 321 more were proposed. 

Furthermore, collaborative research initiatives, such as the Advanced Reactor Demonstration Program (ARDP) led by the United States, involve collaborations among government agencies, private companies, and research institutions. These collaborations seek to accelerate the development and deployment of advanced reactors, which frequently use lithium fluoride. The lithium fluoride market trend is expected to continue as global efforts focus on decarbonization and sustainable energy solutions.

Market Restraints

Price Volatility

Price volatility in the lithium market, including lithium fluoride, has been influenced by geopolitical events, changes in demand, and supply chain dynamics. Price changes can impact the cost-effectiveness of lithium compounds for end users. The lithium market has seen significant price volatility in recent years. For example, increased demand for lithium-ion batteries used in electric vehicles and energy storage systems has resulted in periods of higher lithium prices. In contrast, Prices fell further in the third quarter of 2023 due to weak demand, low import prices, and a lack of inquiries. Lithium fluoride prices fell 45% from March to May in the second quarter of 2023. However, prices had risen by 35% by the end of June. Lithium fluoride prices were estimated to be USD 66,300 per metric ton in September 2023.

Furthermore, the market's oversupply of lithium and uncertainty surrounding electric vehicle demand contributed to a price drop. This incident demonstrated the sensitivity of lithium prices to market dynamics. Lithium producers, exploration companies, and end-users make strategic decisions to manage risks in response to price volatility. Long-term supply agreements, technological advancements in lithium extraction, and efforts to diversify sources all help mitigate the effects of price volatility.

Market Opportunity

Increasing Demand for Lithium-Ion Batteries

The increased demand for lithium-ion batteries creates a significant growth opportunity for lithium fluoride. Electric vehicles (EVs), energy storage systems (ESS), and portable electronic devices use lithium-ion batteries extensively. As these industries expand, the demand for lithium compounds, such as lithium fluoride, used in the electrolytes of these batteries is expected to rise. The growing demand for lithium-ion batteries can be seen in the electric vehicle market. According to the IEA, electric car sales will reach 14 million by the end of 2023, representing a 35% increase from 2022. This means that by 2023, electric vehicles will account for 18% of all car sales. Major automakers heavily invest in electric vehicle production to meet consumer demand for cleaner, more sustainable transportation. For example, companies such as Tesla have seen significant growth in electric vehicle sales, increasing demand for lithium-ion batteries and, as a result, lithium compounds.

Another primary driver of lithium-ion battery demand is the energy storage sector. Lithium-ion batteries are becoming increasingly crucial in grid storage projects as renewable energy sources expand and the need for efficient energy storage solutions grows. The International Energy Agency (IEA) predicts that global renewable capacity will increase by 107 gigatonnes (GW) to more than 440 GW by 2023. This is the most significant absolute increase in history. This trend increases demand for lithium compounds such as lithium fluoride. Furthermore, lithium-ion batteries are widely used in consumer electronics such as smartphones, laptops, and wearable devices. The consumer electronics industry's ongoing innovation and development help to sustain demand for lithium-ion batteries and lithium compounds.

Regional Analysis

The global lithium fluoride market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America Dominates the Global Market

North America is the most significant global lithium fluoride market shareholder and is estimated to grow at a CAGR of 11.5% over the forecast period because of rising demand from the Glass and Optics industries. Even though optical technologies are essential enablers for all industries today, high-quality optical glasses are required. Optical glass types advanced quickly, and many spin-off glass types found their way into other applications, resulting in a buoyant market impact. Furthermore, in 2023, Americans purchased one million fully electric vehicles, marking the first time in the country that this many EVs were sold in a single year. This is a significant achievement for the EV industry and a significant step toward transportation electrification. 

Asia-Pacific is anticipated to exhibit a CAGR of 11.9% over the forecast period. The Asia-Pacific region is expected to have the highest growth rate in the global lithium fluoride market, with countries such as India, China, and South Korea being among the top suppliers and producers of chemical products. Some of the world's most extensive chemical and material manufacturing facilities are located in Asian countries. Furthermore, Asia-Pacific is one of the leading regions for EV markets, with China remaining the top producer and exporter of electric vehicles across all price ranges in 2022. These vehicles, powered by Li-ion batteries, increased demand for lithium fluoride, a component of lithium-ion batteries. Additionally, increased sales of portable smart devices such as laptops and smartphones resulted in increased investment in the regional Li-ion battery market.

Europe holds a significant market share. According to Lithium Fluoride Market insights, the widespread use of lithium fluoride in optical imaging and medicinal applications has increased demand for the metal in Western and Eastern Europe. Furthermore, Europe is expected to deliver significant results as the region continues to upgrade nuclear energy investments. According to recent findings, nuclear power generates approximately 28% of Europe's electricity. Olkiluoto 3 is Finland's most recent nuclear power plant, with a nameplate capacity of 1600 MW.

Report Scope

Report Metric Details
Segmentations
By Application
  1. Ceramic and Glass
  2. Nuclear Power Generation
  3. Optics
  4. Metallurgy Processes
  5. Pharmaceuticals
  6. Others
By Type
  1. 98%
  2. 99%
  3. 9%
By Product Type
  1. Powder
  2. Granule
By End-User
  1. Glass and Optics Industries
  2. Electronic and electrical industries
  3. Nuclear Industry
  4. Other
Company Profiles Crystran Ltd FMC Rockwood American Elements Leverton Clarke Ekhande Agro Fertilizers Pvt. Ltd. Axiom Chemicals Jiangxi Ganfeng Lithium Harshil Fluoride Brivo Lithium Eagle Picher Technologies Huizhi Lithium Energy Axiom Chemicals Pvt. Ltd. Intelligent Materials Pvt. Ltd. Madras Fluorine Private Ltd. Alpha Chemika
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global lithium fluoride market is segmented based on type, application, product type, end-use industry, and region.

The market is further segmented by type into Above 98% and Above 99%.

Above 98% accounts for the largest share of the market. During the forecast period, the largest market share was above 98% in 2022. Above 98% lithium fluoride is used in vitreous enamels and glazes, as a flux in soldering and welding aluminum, and in specialized UV optics in infrared spectrophotometers. Some of the 98% lithium fluoride properties listed above include solubility in water and acids and hydrofluoric acid solubility in alcohol. Furthermore, more than 98% of lithium fluoride is used as a crystal in X-ray spectrometry. It is widely used as a coupling layer in Polymer and Organic LED to improve electron injection.

A purity level of more than 99% for lithium fluoride indicates higher refinement and lower impurity content. Because of its ultra-high purity, it is ideal for susceptible applications, such as semiconductor manufacturing and optical coatings. Above 99% lithium fluoride is rigorously purified to eliminate impurities exceptionally. The superior purity level ensures that it meets the stringent specifications required for applications where even the slightest contamination could impair performance, making it a critical material in cutting-edge technologies that require the highest precision and purity.

The market can be bifurcated by application into Ceramic and glass, Nuclear Power Generation, and Optics Metallurgy Processes.

Ceramic and Glass generate the most revenue in the market. In 2022, ceramics and Glass held the largest market share. Lithium fluoride is essential in the Ceramic and glass industry, contributing to specialty glasses and ceramics production. Because of its high refractive index and desirable optical properties, it helps produce lenses, optical fibers, and glass coatings. Lithium fluoride improves the transparency, durability, and performance of Glass and ceramic materials, making it indispensable for use in telecommunications, optics, and precision instruments.

Lithium fluoride is used in advanced nuclear power generation technologies such as molten salt reactors. It acts as a coolant and neutron moderator, facilitating efficient heat transfer and improving nuclear power plant safety and efficiency.

Based on the end-use industry, the market is sub-segmented into the Glass and optics Industry, the electrical and electronics Industry, and the Nuclear Industry.

The Electrical and Electronics Industry holds a significant market share. The electrical and electronic industry segment was dominant in 2022. Lithium fluoride is used in the electrical and electronics industries to make various electronic components and lithium-ion batteries. As a component of lithium-ion battery electrolytes, lithium fluoride improves battery performance in devices such as smartphones, laptop computers, and electric vehicles. Its application in the electronics industry includes semiconductor manufacturing, where lithium fluoride may be used in specific processes. Lithium fluoride, with its unique properties, is essential in producing advanced electronic devices, thereby supporting the continued evolution of the electronics sector.

Lithium fluoride is used extensively in the glass and optics industries to improve the optical and physical properties of Glass and visual components. It is used to create specialty glasses, lenses, and optical coatings. Lithium fluoride's high refractive index and transparency make it invaluable in applications such as camera lenses, telescope optics, and precision optical instruments. The Glass and optics industry relies on lithium fluoride to achieve superior clarity and performance in a wide range of optical products, which helps to advance telecommunications, scientific instruments, and imaging technologies.

Market Size By Application

Recent Developments

  • December 2023- GanfengLiEnergy's rooftop distributed photovoltaic power generation project at the GanfengLiEnergy Power Factory has been connected to the grid and started up. The project has a 3.4 megawatt installed capacity and uses the factory's rooftop as a photovoltaic site.
  • September 2023- EaglePicher was chosen to design and manufacture a lithium-ion primary and emergency battery for the Saab Gripen E-series fighter aircraft.

Top Key Players

Crystran Ltd FMC Rockwood American Elements Leverton Clarke Ekhande Agro Fertilizers Pvt. Ltd. Axiom Chemicals Jiangxi Ganfeng Lithium Harshil Fluoride Brivo Lithium Eagle Picher Technologies Huizhi Lithium Energy Axiom Chemicals Pvt. Ltd. Intelligent Materials Pvt. Ltd. Madras Fluorine Private Ltd. Alpha Chemika Others

Frequently Asked Questions (FAQs)

What is the estimated growth rate (CAGR) of the global Lithium Fluoride Market?
The global Lithium Fluoride Market size is growing at a CAGR of 11.7% from 2023 to 2031.
North America has the largest share of the market.
Nuclear energy demand are the key driver for the growth of the market.
Increasing demand for Lithium-Ion batteries is one of the upcoming trend in the market.
The key players in the global Market include Crystran Ltd, FMC, Rockwood, American Elements, Leverton Clarke, Ekhande Agro Fertilizers Pvt. Ltd., Axiom Chemicals, Jiangxi Ganfeng Lithium, Harshil Fluoride Brivo Lithium, Eagle Picher Technologies.


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