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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Japan’s petchem supplies to last into next year: PM
Japan’s petchem supplies to last into next year: PM
Tokyo, 1 May (Argus) — Japan's supply of naphtha-derived chemical products is sufficient to last beyond the end of this year, prime minister Sanae Takaichi said. Japanese refiners are continuing to produce domestically refined naphtha, while naphtha imports from countries outside the Middle East — including the US, Algeria and Peru — will treble in May compared with levels before the escalation of geopolitical tension in the Middle East, Takaichi said on 30 April. Naphtha imports from such countries were 900,000 kilolitres (190,000 b/d) in April and will surpass 1.35mn kl in May, according to the trade and industry ministry Meti. Japan has also secured stocks of intermediate chemical products, such as polyethylene and polypropylene, totalling around 1.8 months' worth of use. These procurement efforts and inventory utilisation mean Japan can maintain its supply of naphtha-derived chemical products beyond the end of the year, Takaichi said, up from the previous estimate of over six months made in early April. Japan has secured around 1.4mn b/d of crude oil for May, accounting for around 60pc of the country's requirement based on average 2025 imports of 2.36mn b/d, Takaichi said. The country secured more than 500,000 b/d in April, around 20pc of its needs, according to Meti. Japan has been drawing on its stockpiles to cover its remaining requirements. It began releasing a second batch of oil from its national reserves on 1 May, Meti said today. The ministry previously said on 30 April that the start of this release would be delayed by one day to 2 May. Takaichi also reiterated that Japan has sufficient oil supplies to last beyond the end of this year, taking into account its oil reserves and alternative purchases. Tokyo has been providing fuel subsidies to ease the impact of rising oil prices caused by supply disruptions through the strait of Hormuz, as it aims to cap retail gasoline prices at around ¥170/l ($1.08/l). Japan's nationwide average gasoline price has fallen to ¥170/l, which is half the level in European countries and similar to prices in oil-producer the US, Takaichi stressed. Japan's subsidised retail gasoline prices averaged ¥169.7/l as of 27 April, according to Meti. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
German chemical industry power demand could resume fall
German chemical industry power demand could resume fall
London, 30 April (Argus) — Power consumption in the German chemical manufacturing sector has fallen sharply over the past decade and could continue to decline in the coming years unless structural reforms are implemented quickly, chemical industry association VCI executive director for sustainability, energy and climate policy Matthias Belitz told Argus . Power consumption in the manufacturing of chemical products totalled 42.79TWh in 2024, according to the latest data from statistical office Destatis, making up more than 9pc of total electricity consumption. But consumption in the sector has dropped by nearly 20pc on 2014-18 levels, and in 2024 was the second lowest for any year since at least 2008, only behind 2023 ( see consumption chart ). A fall in overall chemical production has been a key driver in the power consumption decline, Belitz said. Chemical production fell by 3.3pc on the year in 2025 and was down by about 21pc on 2021, VCI figures show ( see production chart ). Chemical plants totalling 9pc of European production capacity have closed since 2022, with 25pc in Germany, a report commissioned by European chemical industry body Cefic earlier this year showed. Belitz attributed the recent woes in the German chemical industry to global overcapacity, overly complex bureaucracy and high energy costs. Global chemical production capacity has risen sharply in recent years, with particularly strong growth in China and the Middle East, while demand for basic chemicals has largely stagnated. This shift in supply-demand balance has weakened the German industry, and the Middle East conflict will "undoubtedly" have "negative consequences", Belitz said. The business climate in the German chemical industry "deteriorated significantly" in March, according to the latest survey conducted by German economic research institute Ifo. Share of power consumption stagnant Power's share of total energy consumption in the chemical industry fell narrowly on the year in 2024 to 25.1pc and was slightly below the 2008-23 average, the latest Destatis data show. An electrification investment incentive is currently "lacking", Belitz said. Electricity is too expensive, making large-scale electrification unviable without significant policy changes. And in a highly uncertain environment, it is difficult for firms to make long-term investment decisions, he added. Energy-intensive industry association VIK's index for average industrial power prices — tracking wholesale developments — stood at 309 points in March, against a January 2002 baseline of 100 points, with the rise well outpacing inflation. By contrast, the index was consistently below 200 in 2009-20. Belitz also pointed to the lack of physical availability of grid connections. Obtaining grid connections can take 5-10 years, further complicating the electrifying process. ‘Structural reforms' required to boost power demand To prevent further plant closures and enable electrification, "structural reforms" are urgently needed, Belitz said, including lowering overall power system costs, synchronising renewables expansion with grid expansion and ensuring consistently lower all-in electricity costs. "We need the physical pre-requisites regarding the grid and we need solutions for times when renewables are not producing," Belitz said, arguing that "expanding renewables capacity alone is not enough" but that "it is important that the availability of renewable energy is perpetuated". German chemical company BASF echoed this sentiment. "Politically induced costs must be reduced," a BASF spokesperson told Argus , urging a "faster, co-ordinated expansion of renewable electricity and grids", while also demanding a "fundamental ETS [emissions trading system] reform". The EU ETS puts Europe at an "enormous" disadvantage, Belitz said. Other regions have followed Europe's emissions pricing at "a significantly slower pace than expected and also with a much lower magnitude". Chinese firms, for example, pay roughly one tenth of Europe's CO2 emissions costs, and not all sites are liable, Belitz said. BASF last month opened its Zhanjiang Verbund chemical production site in China, into which it invested €8.7bn. The site's construction aligns with BASF's strategy of "investing where we see opportunities for growth", a spokesperson told Argus . China recorded 45.7pc of global turnover in the chemical industry in 2024, according to VCI data. China's 2024 chemical production was up by 26.6pc on 2021, while German production was down by nearly 19pc ( see international production chart ). And the carbon border adjustment mechanism (CBAM), intended to safeguard European industry and prevent carbon leakage, is "unsuitable for protecting our companies in international competition", Belitz said. The complexity in the industry is too high, meaning CBAM will "constantly lag behind the reality" and generate massive bureaucracy. CBAM currently does not apply to the vast majority of chemicals, although they are likely to be included in the future. Government subsidies only a ‘temporary fix' Government measures to subsidise industry, including the industry power price and an expansion of the power price compensation, are "merely a temporary fix", Belitz said. The industry power price will relieve beneficiaries of 50pc of the yearly average wholesale price in 2026-28, although only down to €50/MWh, while the power price compensation expansion aims to slightly boost aid for firms' incurred indirect emissions costs as part of their electricity costs. These measures provide some short-term relief, but more structural solutions are required to keep industry afloat. "The government cannot subsidise permanently, it will not work," Belitz said. These instruments alone are "insufficient to sustainably restore competitiveness", BASF said. Power consumption is expected to rise significantly in the long term, despite stagnation in recent years, Belitz said, citing the Chemistry4Climate study last updated in 2024. Power consumption across chemicals and pharmaceuticals, with the former making up the vast majority, could reach 160-440TWh by 2045, according to the study, assuming climate neutrality and strongly depending on how much hydrogen will be imported, although Belitz said we "must acknowledge that we will not end up in an all-electric world". In the near term, power consumption in the chemical industrial sector is likely to continue dropping, owing to further falls in production, unless structural reforms in the energy and regulatory sectors take effect promptly. By John Horstmann German chemical industry consumption by year German chemical industry, production, electricity, gas consumption index 2014=100 International chemical production index 2014=100 German chemical industry 2008-24 average energy consumption % Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Braskem names Petrobras chief as board chair
Braskem names Petrobras chief as board chair
Sao Paulo, 30 April (Argus) — Brazil's Braskem has appointed Petrobras chief executive Magda Chambriard as chair of its board of directors, following a decision taken at the company's shareholders' meeting on 29 April, the petrochemical producer said. The appointment was made under the slate of directors nominated by Petrobras, which is Braskem's second-largest shareholder, and aligns with the new governance framework currently in place at the company. Braskem said the new board will serve for the term set out in its bylaws, and the company did not announce any changes to executive management. Petrobras confirmed the nomination, saying the appointment reflects the governance arrangements agreed with Braskem and reinforces cooperation between the two companies. The oil major did not provide further details on the scope of the chair's role. Braskem is in the middle of a control transition following fellow conglomerate Novonor's agreement to sell its controlling stake to the IG4 fund, ending its long-standing position as Braskem's controlling shareholder. As part of that transaction, Braskem is moving to a shared-control structure, in which IG4 and Petrobras hold key governance rights. Under the new model, neither shareholder exercises unilateral control, and strategic decisions require alignment between the parties, while Braskem's management and day-to-day operations remain unchanged. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
UAE's Borouge starts up Al Ruwais polymers project
UAE's Borouge starts up Al Ruwais polymers project
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