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.
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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.
Brazil approves new rules for federal gas sales
Brazil approves new rules for federal gas sales
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. By Rebecca Gompertz Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US tariffs to cut Brazil's tallow exports
US tariffs to cut Brazil's tallow exports
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The announcement removed much of the uncertainty that had weighed on the industry throughout 2025 and provided a clearer demand outlook for biofuel feedstocks in the US. The higher mandates translated into stronger demand for feedstocks such as tallow on the US Gulf coast, where prices climbed to a record high of $1,995.81/t on 3 June. Elevated domestic prices opened arbitrage opportunities for imports during the first half of the year, supporting a recovery in overseas shipments. Although US tallow imports have yet to exceed their historical highs in 2026, they have rebounded significantly from lower levels early in the year. The recovery had boosted confidence among overseas suppliers, who expected import demand to continue strengthening through the remainder of 2026. But the new tariff measures have added fresh uncertainty to that outlook, raising questions about future trade flows and the competitiveness of different supplying regions. This has renewed attention on Europe as a potential destination for Brazilian tallow. European traders do not expect the US tariffs on Brazilian tallow to result in a significant increase in imports into the EU. Market participants had explored diverting Brazilian volumes to Europe when US tariffs reached 50pc in the second half of 2025, but shipments were limited, partly because veterinary approvals, certification requirements and border controls restricted market access. As a result, only small volumes arrived in early 2026 despite concerns over a potential influx. The latest 37.5pc tariff is therefore unlikely to change trade flows materially. Although Spain's RED III implementation is expected to support category 3 demand from 2027 by rewarding greenhouse gas emissions savings and leaving category 3 outside the 1.7pc Annex IX Part B cap, traders said freight costs, high energy prices and regulatory hurdles continue to prevent a viable Brazil-Europe arbitrage. 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