HS Code:
Lithium carbonate (HS Code: 283691) is a critical chemical compound used primarily in the production of lithium-ion batteries, which power electric vehicles, portable electronics, and renewable energy storage systems. It is also utilized in ceramics, glass, and pharmaceutical applications for treating bipolar disorder. As a key raw material in the global shift towards sustainable energy, lithium carbonate has seen a surge in demand driven by the electrification of transportation and renewable energy initiatives.
Total Trade Volume
USD 7.2 billion
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
USD 3.1 billion
43% of total trade of total trade
Increasing
USD 2.0 billion
28% of total trade of total trade
Increasing
USD 1.2 billion
17% of total trade of total trade
Increasing
USD 0.6 billion
8% of total trade of total trade
Increasing
USD 0.3 billion
4% of total trade of total trade
Stable
Average Rate
5.2% ad valorem
Highest Rate
12% (applied by certain developing economies)
Lowest Rate
0% (under free trade agreements like USMCA and EU-Chile FTA)
Surging demand for electric vehicles (EVs)
Increased global demand for lithium carbonate as EV battery production scales up, particularly in China and Europe.
2021-2023
Investment in lithium mining and processing
Countries like Australia and Chile are expanding production capacity, while new projects in Argentina and Bolivia aim to capture market share.
2022-2023
Price volatility due to supply chain constraints
Shortages of lithium carbonate have driven prices to record highs, impacting battery manufacturers and EV pricing.
2022
Chile announced a new policy in April 2023 to increase state control over lithium production, aiming to partner with private firms for sustainable extraction.
April 2023
May lead to shifts in global supply dynamics and potential delays in production scaling if partnerships face regulatory hurdles.
The European Union introduced legislation to secure lithium supply chains by promoting domestic production and reducing reliance on imports.
March 2023
Encourages recycling and local sourcing, potentially reducing import volumes from traditional exporters like Chile and Australia.
Argentina has fast-tracked lithium projects in its northern provinces, with several new mines expected to come online by 2025.
June 2023
Positions Argentina as a growing player in the lithium market, potentially increasing global supply and stabilizing prices.