Ethylene Carbonate Industry is Accelerating with the Booming of Electric Passenger Car

Ethylene carbonate (EC) is currently in tight supply and the price has risen sharply. On the 23rd of May, it rose another $150/ton. The current price is around $3,300 per ton, up about $2,000 from the same period last year.


Good performance guarantees EC demand

Ethylene carbonate (EC) is one of the solvents commonly used in the manufacturing of lithium battery electrolytes. Compared with other solvents, EC has a higher dielectric constant, and its main decomposition products can form an effective, dense and stable SEI (solid electrolyte interphase) on graphite surface. Therefore, it has become the main solvent component, and the mass in the electrolyte accounts for 20% above. In different electrolyte systems, EC always has a place, and the demand for EC will be directly linked to the electrolyte demand.



Get FREE Sample of Ethylene carbonat Report at: 

https://www.globalmarketmonitor.com/reports/404708-ethylene-carbonate-market-report.html


Downstream industry is pushing EC demand

Electric passenger car is now a heat. The revolution brought by Tesla and the government's preferential policies for purchasing electric passenger cars have caused consumers' demand for electric vehicles to soar, which directly led to an increase in demand for lithium batteries. As the most common used solvent of electrolyte, EC is irreplaceable and the demand will increase.


Tight supply results rising price

Since Mitsubishi Chemical and Toagosei are the only manufacturers of EC abroad, and both have small production, EC industry is more relay on the production of Chinese manufacturers. (The production of Mitsubishi Chemical is even not enough for its own electrolyte manufacturing.)

Due to environment issues, two leading EC manufacturers in China, Taixing Taipeng and Taida were forced to shut down, involving 31000 tons of capacity. At present, the EC industry has only 67,000 tons of production capacity, which has been limited in the past two years and is likely to remain around 60,000 tons within several years. Lately, China Industrial Association of Power Source predicted that battery-level EC demand at China will be between 40000 and 45000 tons. Considering about the 20000 tons annual export, the supply of EC in China will be in short.


Need a Custom Research Report? Please Click: 

https://www.globalmarketmonitor.com/request.php?type=3&rid=404708


Be environmental-friendly and productive

Due to the continuous price war in the electrolyte-related industries in the past two years, although EC is expected to be in short supply, the operating rate of the manufacturers is obviously low. In addition, due to the influence of environmental inspectors, it is less likely to have new EC manufacturers. At present, Shida Shenghua, established in 2002, is the largest and most internationally renowned electrolyte solvent supplier in China. The annual report shows that its supply accounted for about 40% of the world's total, and its export volume accounted for about 80% of China’s electrolyte solvent exports.

Thanks to the complete industrial chain and the technological advantages of high-end products, Shida Shenghua is able to provide one-stop service to customers, which is also the basis for its comprehensive competitiveness. Shida Shenghua's downstream customers include China’s leading electrolyte enterprises such as like Shenzhen Capchem and Guangzhou Tianci. Therefore, it provides materials for Samsung, LG and BYD indirectly.

In order to maximize profits, EC manufacturers need to cooperate with related companies in addition to ensuring production capacity, and continue to innovate to meet industry needs. Since the heat of EC industry is closely related to electric passenger car industry, it is necessary to consider the development speed and consumer acceptance of electric passenger vehicles.

Want to discuss the above findings with our analyst, please click Speak to Analyst

Beyond Consulting, Future is Feasible

We provide more professional and intelligent market reports to complement your business decisions.