Lithium Hydroxide Production and Market Summary for China     

By Huo Liming and Dong Huabo, Sichuan Tianqi Lithium Industries, Inc.   
Zhang Jiangfeng, China Institute of Nonferrous Metals Technology and Economics   

Lithium hydroxide is one of the most important lithium salts, and is widely used in industries like chemical raw materials, chemical reagents, batteries and oil. In the battery industry, lithium hydroxide is employed as an additive in alkaline storage batteries and nickel-hydrogen batteries so as to extend battery life and increase the storage capacity.

Main production methods   

There are many ways to produce lithium hydroxide, all of which adopt lithium-containing ores and brines as raw materials. At present, the most commonly used process at home and abroad is the causticization of lithium carbonate, yet this method's cost is greatly influenced by the price of lithium carbonate and the cost of the required production equipment is relatively high. Lithium sulfate ores, after causticization treatment, can be made into battery grade lithium hydroxide. Lithium hydroxide obtained through electrolysis of lithium sulfate solution enjoys high concentration and zero secondary pollution, making it ideal for direct production of lithium-based grease.

Lithium hydroxide market conditions    

China's lithium hydroxide production capacity can meet domestic demand easily, and the country exported a lot to other countries and regions in recent years. Since 1970s, China has begun lithium hydroxide exports to Europe and America. In 1990, the export volume was 715 tons, and this figure reached 3 784.501 tons in 2007, then fell to 2 795.728 tons in 2008. That year, China's lithium hydroxide capacity exceeded 15 000 t/a, and actual output was near 10 000 tons. In terms of application, the uses of lithium hydroxide in different industries vary considerably. In recent years, the market allocation of domestically made lithium hydroxide is basically kept at 2/3 for domestic consumption and 1/3 for international consumption.

Outlook   

Rapid development of the electronics industry greatly drives up consumption in Li-ion batteries and nickel-hydrogen batteries, while the demand for lithium-based grease and lithium organic compounds (industrial catalysts used in synthetic rubber material and drug production) is expected to continue to grow, too. Moreover, the increasing demand for lithium hydroxide in fields like concrete additives and industrial air conditioners cannot be neglected. At present, the global lithium hydroxide market can generally meet the demand, but emerging markets need products of higher quality to fill the gap, so some lithium companies are recently pressing on the expansion of their production capability of lithium hydroxide. The domestic projects currently under construction are mostly centered on battery-grade lithium hydroxide: the second-phase 5 000 t/a lithium hydroxide project of Baiyin Zhabuye Lithium Industry Co., Ltd. has passed the examination; Henan Sanmenxia Lithium Industry Co., Ltd. plans to build a 2 000 t/a lithium hydroxide production line; Shanghai China Lithium Industrial Co., Ltd. is also expanding its lithium hydroxide capacity. Upon completion, these projects will greatly alleviate the supply shortage of battery-grade lithium hydroxide.


Major enterprises and output of lithium hydroxide in China, as of 2008
Company        Cacity (t/a)  Output (ton)
Xinjiang Haoxin Lithium Salts Development Co., Ltd
    3000    2 500
Sichuan Tianqi Lithium Industries. Inc.
    2 000    1 650
Sichuan Aba Guangsheng Lithium Co., Ltd.    
    3 000    1 200
Sichuan Ni & Co Guorun New Materials Co., Ltd.
    3 000    2 000
Sichuan Jixiang Lithium Technology Co., Ltd.
    3 000    2 200
Baiyin Zhabuye Lithium Industry Co., Ltd.
    2 000    285
Source: China Institute of Nonferrous Metals Technology and Economics


Application areas of lithium hydroxide changes in China
Year                             1990               2008
Grease lubricant                  80%                       60%
Battery                           5%                       15%
Organic synthesis and pharmacy     5%                       10%
Reagent and others                 10%                       15%
Total consumption volume (ton)        2 000               6 000
Source: China Institute of Nonferrous Metals Technology and Economics