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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US chlor-alkali producers insulated from energy rally
US chlor-alkali producers insulated from energy rally
Houston, 11 March (Argus) — US energy independence should insulate domestic chlor-alkali manufacturers from surging feedstock global natural gas costs as the US war in Iran enters its second week and roils markets. US natural gas prices remain insulated from a global supply crunch even as the war with Iran fuels volatility in oil futures and higher European natural gas prices. Natural gas comprises about 70pc of electrochemical unit (ECU) production costs in the US. An ECU is 1t of chlorine and 1.1 dry metric tonnes (dmt) of caustic soda. US benchmark Henry Hub natural gas prices have climbed by 4pc after the initial US-Israel joint attacks on Iran on 28 February to settle on Tuesday at $3.07/mmBtu. But US natural gas futures are unlikely to see near-term volatility unless the conflict is prolonged, analysts said. "In the short-term, the war would have little to no impact on Henry Hub prices," Baker & O'Brien consultant Kent Bayazitoglu told Argus . US LNG exporters have little ability to increase volume into the global market because they already operate near capacity. Less-reactive natural gas prices at Henry Hub should widen ECU margins for US producers as caustic soda spot exports trade at $400/dmt fob and higher and polyvinyl chloride prices rebound. A stable US Gulf coast ECU cost floor could allow producers to be more competitive in the global spot market as other origins face the risk of higher energy prices. European benchmark TTF natural gas prices climbed by as much as 70pc from pre-war levels to $18.94/mmBtu on 9 March before easing to $15.90/mmBtu yesterday — still 43pc higher than pre-war prices. US Gulf coast spot caustic soda prices were uncompetitive to many destinations outside Latin America before the war in the Mideast Gulf and rallying freight costs following the attacks have further increased delivered prices from the US and other origins. Rising caustic soda prices, though, are not expected to deter import demand as supply options become increasingly limited. Northeast Asia and Middle East suppliers are virtually locked out of the Mediterranean market with shippers steering clear of the Red Sea, and planned maintenance in the US and Europe should limit spot availability throughout the Atlantic basin through the second quarter. Mediterranean importers, who have been on the sidelines since January with plentiful inventory, potentially face steeper spot price increases for the next round of buying because of higher freight costs and expected supply limitations in the Atlantic. By Connor Hyde Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Equate halts EG-2 unit in Kuwait
Equate halts EG-2 unit in Kuwait
Amsterdam, 9 March (Argus) — Kuwait-headquartered petrochemical producer Equate has temporarily shut down its EG-2 ethylene glycol unit in Shuaiba during the ongoing war between the US/Israel and Iran. The firm suspended output "to safeguard people and operations", the firm said today. Equate operates two ethylene glycol units with capacities of 600,000 t/yr and 550,000 t/yr in Shuaiba, Kuwait, according to Argus data. The firm's notice related only to the EG-2 plant, implying that other units are running, although operations are likely to be affected. Equate operates two steam crackers at the Shuaiba site with a combined 1.85m t/yr ethylene capacity, which supplies the EO/EG units and 890,000 t/yr LLDPE/HDPE capacity. The firm also runs a 1.025mn t/yr ethylene glycol facility in Texas in the US, as well as two sites with a combined capacity of 1.35mn t/yr of ethylene glycol in Canada's Alberta through its subsidiary MEGlobal. Exports of ethylene glycol from the Mideast Gulf were effectively halted by the war, with tanker traffic through the strait of Hormuz — the main route for Mideast Gulf crude, LNG and petrochemicals exports — almost at a standstill since the US and Israel began launching air strikes on Iran on 28 February. Tehran has responded by attacking other countries in the region, including targeting oil and gas infrastructure and shipping. Kuwait supplies most of its monoethylene glycol (MEG) to Asia, mainly to India, China and Pakistan. The country exported over 1.2mn t of MEG in 2025, Global Trade Tracker data show. India received 548,000t or 45pc of total exports, while China and Pakistan took 402,000t and 165,000t, representing 33pc and 14pc of exports, respectively. By Liana Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US-Iran war: Latest news
US-Iran war: Latest news
Singapore, 9 March (Argus) — A round-up of the latest Argus news stories focusing on the US-Iran conflict. TOP STORIES G7 to assess Mideast Gulf crisis as oil tops $100/bl Crude pares gains on IEA stock release report: Update 2 Iran's IRGC warns against continued attacks on energy Saudi Arabia's Shaybah oil field hit by drones again Fire at UAE's Fujairah storage contained Drone attacks tests Oman's bid as Hormuz bypass LATEST NEWS Crude and oil products Vietnam plans oil tax cut on escalating US–Iran war Bahrain's Bapco issues force majeure after refinery hit Asia's gasoline market jumps on weekend attacks Supply fears trigger fuel rationing in Australia Vietnam seeks to diversify fuel import sources Thai refineries issue force majeure on war, export ban China's CNOOC raises naphtha prices on cracker halt Asian prompt LSFO prices spike on supply fears Vietnam to curb crude exports to meet local demand Petrochemicals Kuwait's TKSC declares force majeure over US-Iran war China's Wanhua declares FM on supplies to Middle East Southeast Asia faces methanol supply crunch: Update Japan's Mitsubishi Chemical slows ethylene production Singapore's TPC declares FM on upstream supply woes Fertilizers Chinese domestic sulphur prices rise on US-Iran war Southeast Asian urea prices surge on US-Iran war Bitumen Singapore's Shell, Thai IRPC issue FM on bitumen export Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan's Mitsubishi Chemical slows ethylene production
Japan's Mitsubishi Chemical slows ethylene production
Tokyo, 9 March (Argus) — Japanese petrochemical company Mitsubishi Chemical reduced the operating rate of its 485,000 t/yr naphtha-fed cracker at its Ibaraki plant in eastern Japan late last week, Mitsubishi Chemical told Argus on 9 March. The move is a part of its efforts to avoid halting operations altogether, following concerns over naphtha supplies because of the US-Iran conflict. Domestic and imported naphtha procurements are becoming uncertain, Mitsubishi Chemical said. Normal operations continue at the company's 496,000 t/yr cracker, jointly owned by chemical firm Asahi Kasei and Mitsubishi, at the Mizushima plant. The difference between its two crackers reflected stockpiled naphtha levels at each plant, Mitsubishi Chemical added. Separately, fellow Japanese petrochemical firm Idemitsu notified its customers last week that the company could halt its ethylene output in the middle- to long-term if the supply shortage of feedstock naphtha lasts long, it said. But Idemitsu currently has no concrete plans to stop its ethylene production, the company added. Idemitsu has a 623,000 t/yr naphtha cracker at its Tokuyama plant in western Japan and a 374,000 t/yr cracker at its Chiba plant in eastern Japan. Further concerns Other Japanese petrochemical producers also share concerns over naphtha supplies. Japanese chemical company Resonac's subsidiary Crasus Chemical has halted its 618,000 t/yr naphtha-fed cracker for maintenance since February. The cracker is expected to come back on line in late April or later. "If the current situation lasts until then, our cracker could also be affected," Crasus Chemical said. Fellow petrochemical firm Tosoh has halted its 493,000 t/yr cracker on 4 March for regular maintenance, which was planned before the US-Iran conflict started. The cracker is expected to come back on line around 19 April, but its restart could be delayed if the current situation disrupts naphtha procurement, Tosoh said. Petrochemical firm Maruzen Petrochemical has confirmed that it can continue operating its 480,000 t/yr cracker at its Chiba plant with its inventories at least during March, the company said. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.