PVDF demand to increase chlor-alkali consumption
PVDF demand to increase chlor-alkali consumption
The demand growth of polyvinylidene fluoride (PVDF) is dependent on lithium-ion batteries for battery-operated electric vehicle (EV) demand and stationery electrical storage. Argus forecasts global lithium-ion battery demand in EVs to reach 3.8GWh by 2034 from 0.7GWh in 2023. EV sales are expected to rise at an average growth rate of 10pc in the next 10 years reaching more than 46mn units.
Global caustic soda demand into battery materials for leading regions is shown in the figure. Argus’s latest caustic soda analytics forecast explains an exponential rise in caustic soda consumption for battery material processing. Global caustic soda consumption in the processing of lithium hydroxide, lithium carbonate, cathode materials and recycled black mass was at 1.5mn dmt in 2023 and is expected to reach 3mn dmt in 2033 at a CAGR of 10pc in the first five years.
The relationship between chlor-alkali products and battery materials is gaining focus in the market. With increasing Lithium-based battery capacity globally, demand for associated battery materials is expected to rise. Among the other components of the Li-ion battery stack, PVDF plays an important role as a binder and separator coating, optimizing energy storage efficiency and reducing battery weight in EVs.
PVDF utilizes caustic soda and chlorine in its production at different stages. Primary feedstock includes vinylidene chloride or vinylidene fluoride, which are derivatives of caustic soda and chlorine.
Some significant developments in PVDF capacity are taking place in North America and Northeast Asia. Belgian chemical company Solvay entered into a joint venture with Mexico-based PVC producer Orbia to build the largest production facility of battery-grade suspension PVDF in North America with a capacity of 20,000 t/yr. Commercial production is expected to start in 2026 and the expected caustic soda and chlorine demand can be 8,000 t/yr and 12,000 t/yr respectively.
Solvay has doubled its capacity in Changshu, China in the past five years and raised its capacity in France by 35pc reaching 35,000 t/yr making it the largest production site in Europe. Another major producer French chemical company Arkema increased production capacity by 50pc last year at its Changshu site in China.
Japan-based producer Kureha is undergoing expansion at its Iwaki site in Japan, having a production capacity of 6,500 t/yr. The expansion is in two phases, first is a new capacity of 8,000 t/yr and another 2,000 t/yr in the second phase by debottlenecking resulting in a total capacity of 20,000 t/yr by 2026.
This article was created using data and insight from Argus Caustic Soda Analytics and Argus Battery Materials.
Spotlight content
Related news
Europe naphtha imports rise on Med, US flows
Europe naphtha imports rise on Med, US flows
London, 5 August (Argus) — European naphtha imports rose in July as arrivals from Mediterranean and north African suppliers increased and shipments from the US reached their highest since August 2025. Imports into Europe totalled 1.74mn t in July, up from 1.25mn t in June, Vortexa data show. Algeria was the largest supplier, at 397,400t, its highest monthly volume since May 2025. Italy supplied 264,700t, Spain 212,300t and the US 160,800t. Algerian flows may have been supported by changes in export routing. Kpler data show no Algerian naphtha cargoes transited the Bab el-Mandeb strait, which links the Red Sea with the Gulf of Aden, en route to Asia in July, compared with 132,000t in June. Algerian exports to Asia via the longer route around the Cape of Good Hope rose to 441,000t from 292,000t. Red Sea security risks and longer voyage times may have encouraged some sellers to keep more supply in Europe. US arrivals reached 160,800t in July, the highest since August 2025, Vortexa data show. The increase followed stronger US Gulf coast export activity in June, when several cargoes were listed for discharge in Antwerp and Rotterdam. But support from the US may prove temporary. By the end of July, US-based participants said arbitrage opportunities into Europe had closed , limiting trading interest and potentially reducing arrivals in the coming months. Strong gasoline blending economics also supported naphtha demand in July. The European gasoline-naphtha spread widened to a three-year high of $341.75/t on 17 July, making naphtha more attractive as a gasoline blendstock. The margin eased to $206-220/t heading into August but remained above the 2026 year-to-date average of $159.50/t and the roughly $120/t average in 2025. European gasoline export demand added to the blending incentive. Exports to Brazil reached 420,000t in July, the highest since October 2022, Kpler data show. Most cargoes originated from the Netherlands and Belgium, while Spain also supplied significant volumes. Brazil may need more alternative gasoline supplies after Russia extended its gasoline export ban until the end of the year. Russia accounted for 38pc of Brazil's gasoline imports in June, government data show. The rise in naphtha imports came despite weak European petrochemical demand. Market participants said low Rhine water levels disrupted inland barge movements, sharply reducing naphtha flows to inland consumers. Several steam crackers cut operating rates because of logistical constraints. Some crackers were nearing minimum feasible run rates as feedstock transport challenges persisted into August, market participants told Argus . By Jide Tijani Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Pinus Brasil restarts derivatives site after fire
Pinus Brasil restarts derivatives site after fire
London, 3 August (Argus) — Brazilian pine chemicals producer Pinus Brasil will restart rosin derivatives production at a new facility today following a fire in August 2025, a company executive told Argus . The new site at its Buri complex in Sao Paulo state will have 20,000 t/yr gum rosin derivatives capacity, chief financial officer Eduardo Tonidandel said. The facility replaces the former rosin ester unit damaged by the 27 August 2025 incident, which did not affect gum rosin or gum turpentine output . The blaze, which affected a 1,000m² pine oleoresin processing warehouse, completely destroyed the nearby gum rosin derivatives building, sources familiar with the matter said at the time. Pinus Brasil will produce gum rosin glycerol and gum rosin pentaerythrityl esters, maleic and fumaric resins, modified, disproportioned and saponified gum rosin, and plasticisers. "New products are under development, with launches expected in the coming months," Tonidandel said. The Buri complex now has a combined 40,000 t/yr installed capacity for gum rosin and gum turpentine output, in addition to 20,000 t/yr derivatives capacity. The company said the new site includes upgrades in automation, technology, process safety, quality controls and sustainability. Pinus Brasil aims to expand its global market presence and reclaim its position as one of Brazil's largest gum rosin derivatives exporters. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indian polyolefin importers wary on Middle East risks
Indian polyolefin importers wary on Middle East risks
Mumbai, 3 August (Argus) — Polyolefin buyers in India have slowed import purchases because the latest flare-up in the US-Iran war pushed prices higher and created uncertainty over delivery schedules. Prices of several polyethylene (PE) and polypropylene (PP) grades have risen in recent weeks on the back of higher Brent crude values, prompting caution among traders even towards booking China-origin material. Argus assessed linear low-density polyethylene (LLDPE) prices at $1,180-1,220/t cfr India for the week ended 31 July, compared with $1,090-1,150/t cfr India for the week ended 26 June. PP raffia prices were assessed at $1,190-1,240/t cfr India last week, compared with $1,100-1,140/t cfr India for the week ended 26 June. Many bought in a panic in April and will not repeat the same mistake now, said a Mumbai-based trader, referring to a surge of imports in the initial days of the war. India's PP imports rose rose by 39pc on the month to a record 201,732t in May on the back of a surge of China-origin arrivals because of tight domestic supply, Global Trade Tracker (GTT) data show. A subsequent price decline in June on the back of the interim peace deal also made importers cautious about committing to shipments given that prices could fall if freight shipping conditions change. Buyers would only pay a premium if the sellers can guarantee prompt shipments, the trader added. Higher freight charges are also stopping Middle East-based producers from cutting offers. Shipping companies signalled surcharges of up to $140/t for movement through the Bab el-Mandeb strait after attacks on Saudi energy vessels. The waterway is especially important for Saudi producers exporting polyolefins to key Asian demand hubs. But Saudi producer Sabic has not observed any disruption to container vessel traffic so far through the strait, it said last week. Buying could pick up in the coming days if domestic inventories are drawn down quickly, a Middle East producer said. Buying shifts to domestic producers Many traders are turning to domestic producers in the short term. The government's reintroduction of petrochemical import duties and the recent jump in import offers had encouraged some buyers to shift to Indian polyolefin suppliers, a key market participant said. Curbs on feedstock usage were mostly removed by New Delhi, prompting most Indian petrochemical producers to raise operating rates to offset the fall in imports. Major Indian producers have lifted LLDPE prices by 11,000 rupees/t ($115/t) and PP raffia prices by Rs12,500/t since 23 July because of higher crude prices and a slowdown in import bookings. If import bookings stay low, supply could tighten from end-August when converters seek material ahead of India's festive season, which typically begins in September. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Brazil approves new rules for federal gas sales: Update
Brazil approves new rules for federal gas sales: Update
Adds large energy consumers association Abrace's comments. Sao Paulo, 30 July (Argus) — Brazil's national energy council CNPE approved a resolution on 30 July that will allow federally owned natural gas to be sold directly to the liberalized market through auctions, a move the government said could cut gas prices by more than 50pc and boost industrial competitiveness. The measure updates Brazil's policy for marketing state-owned gas and authorizes state-owned commodity trading firm PPSA to hold short-term auctions for 2026-30 and long-term auctions from 2030. The gas will be offered on an economic and competitive basis, with priority given to gas-intensive industries such as chemicals, petrochemicals, fertilizers and steelmaking, the government said. The mines and energy ministry estimates that state-owned gas prices could fall to about $5/mmBtu from around $12/mmBtu currently paid for gas commercialized by state-controlled Petrobras, according to minister Alexandre Silveira. The resolution is part of Brazil's gas-for-jobs program, which aims to increase domestic gas supply and improve competition in Brazil's gas market. The government said studies by state-owned energy research firm Epe indicate that the measure, together with ongoing regulatory actions by hydrocarbons regulator ANP, could generate R95bn ($17bn) in investments and add R79bn to Brazil's GDP. The government also expects the policy to lower gas costs for thermoelectric generation and compressed natural gas transportation. Large energy consumers association Abrace also backed the rules, saying they will create a more competitive environment and provide mechanisms to reduce gas prices for the industry. Abrace also highlighted other advancements made by ANP, such as the wider access to key gas infrastructures , which also help expand Brazil's open gas market. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.