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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Q&A: Clarity on regulations is key: PETCORE's Ciotti
Q&A: Clarity on regulations is key: PETCORE's Ciotti
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Unfortunately, my expectations are not high. We face two basic challenges. Firstly, we face a structural issue because collection costs in Europe are far higher than outside Europe — some 10 times higher compared with countries such as Egypt, Morocco and China. European recyclers cannot close this gap simply by higher technical standards and innovation — they need protection to compete on a level playing field. Secondly, we are grappling with a lack of clarity. The EU institutions are not clear on what will happen if players don't add at least 25pc recycled content to PET beverage bottles that they sell into the EU market [in line with the country-by-country targets laid out since 1 January in the EU Single Use Plastic (SUP) directive]. There does not appear to be any penalty for those who do not comply with the rules, so naturally the incentive to comply is not high. As the cost of rPET is higher than vPET, we need to fight any potential greenwashing as hard as we can, to ensure brands that are paying the prices to comply are not at a cost disadvantage and thus losing market share, margin and profitability. How much of an impact do you expect imports to have on the European rPET market in the coming years, taking into account expectations for how the push for stricter certification on imports will develop? The current situation is clear — imported rPET is cheaper than European rPET. Stricter certification will certainly have an impact in the medium term, but it's not here yet. The current situation is that European rPET manufacturers face extra costs compared with imports, which cannot be compensated. Some brands could look to address the recycled content requirements set out by the SUP directive by seeking to buy lots of recyclates from outside Europe. In the future, with proper certification implemented, this could change the landscape significantly. How much is the uncertainty and potential inconsistency in enforcement of the recycled content regulations in the SUP directive likely to affect its impact on rPET demand in 2025? For the time being, uncertainty will affect the directive's impact a great deal. It is not clear what counts as recycled content and if depolymerisation is included. The EU Directorate-General for Health and Food Safety was requesting that recycled content should include only PET from European collections, but so far there is a lack of clarity on whether to interpret the definition of "placed on the market" as the EU market or the global market, which is adding to the confusion.* The SUP directive, passed in 2019, is not clear enough and to confuse matters further, the Packaging and Packaging Waste Regulation (PPWR) passed in 2024 is not aligned with the SUP. The SUP is a directive, so it is for EU member states, and they must transpose it into their own laws by January 2025 and implement it. The PPWR is a regulation, aimed at companies that must reach specific targets by 2030. However, with the current market situation of rPET being more costly than virgin PET, companies are understandably hesitant to increase the recycled content to or above 25pc as the target is a country average. It only really makes sense for the large brands that are driven by customer demand. Consumers are keen to see recycled content in packaging, but of course they do not expect to pay more for their products as a result. There is currently a clear disconnect between the wishes of the consumer and the realities of the industry. Several European PET depolymerisation projects have faced challenges in recent months. How quickly do you expect to see commercial-scale depolymerisation making a meaningful contribution to PET recycling in Europe? I don't see depolymerisation making a meaningful contribution until we get greater clarity over regulation. This is something that we will be taking up urgently with the European Commission, including with the commission speakers at our annual PETCORE Europe conference in Brussels on 4-5 February. Clearly the technology needs to be proven and to be cost-effective. But even if this was the case, companies may have cancelled and postponed projects due to legislative uncertainty. They cannot be expected to move ahead with huge investments if it is not clear whether the definition of what is accountable in recycled content has been clarified. The endless discussion on the mass balance technology is a typical example of what we need to clarify.† PETCORE Europe continues to push the commission to clarify all the cloudy points that are still pending, to allow correct implementation of the SUP directive. This is the thrust of the discussions that will be taking place at our conference. The environment in which we operate is changing and Europe's PET industry has realised that it has lost its former global competitiveness. The challenge, and our role as the association representing the complete PET value chain in Europe, is to work to set in place conditions needed for the industry to regain its position and its competitive advantage by innovation and investments in new technologies. *The most recent EU implementing decision relating to the SUP directive defines post-consumer plastic waste as generated from waste "placed on the market" without further clarification. A draft update in February 2024 expanded on the definition to "generated from plastic products that have been supplied for distribution, consumption or use on the market of a Member State or of a third country in the course of a commercial activity", but this was not adopted at the time. †The as-yet-unadopted February 2024 implementing decision laid down a "fuel-use exempt" methodology for calculating chemically recycled content in respect of the SUP directive targets. This led to an objection from the European Parliament's environment committee, although this was rejected in a vote by the parliament. Discussions are ongoing with a new draft implementing decision due early this year. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Port of Nola reopens after winter storm
Port of Nola reopens after winter storm
Houston, 24 January (Argus) — The port of New Orleans reopened today after a prolonged shut-down propelled by a heavy winter storm that swept through the US Gulf earlier this week. Nola and Ports America reopened today to begin working on the backlog of movement caused by the storm. The port had been officially closed since 19 January in anticipation of the wintry temperatures, heavy precipitation and winds. Several inches of snow fell across New Orleans beginning Tuesday morning, according to the National Weather Service, with freezing conditions lasting through Thursday. Both ship and barge loadings and unloadings were significantly delayed across terminals. Several shipping and barge companies announced force majeures before the storm but are expected to reopen within the next couple of days, subject to safety conditions. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Dow to idle one cracker at Terneuzen: Update
Dow to idle one cracker at Terneuzen: Update
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Dow to idle one cracker at Terneuzen
Dow to idle one cracker at Terneuzen
London, 24 January (Argus) — Dow is postponing a planned turnaround at one of its three steam crackers in Terneuzen, the Netherlands, "due to continued weakened market conditions in the region". This will result in the cracker being idled when its legal inspection dates are reached, understood to be within the next few months. "The decision enables Dow to both navigate soft market conditions in the region and reduce expenditures in 2025, while still enabling the company to safely, reliably, and profitably meet contracted customer commitments", Dow said. Local reports citing workers suggest that the unit in question is the number 3 cracker at Terneuzen. This was expected to have maintenance in 2023, but that was previously postponed to this year and has now been postponed indefinitely. Cracker 3 is the newest unit at Terneuzen and in common with crackers 1 and 2 has a high degree of flexibility for LPG feedstocks, which Dow has repeatedly cited has supported healthy operating margins relative to naphtha-based crackers. But the site is long on cracker products and placing volumes in the market has been challenging because of overall weak demand in Europe. The length was exacerbated by the closure of local derivatives such as ethylbenzene-styrene production operated by Trinseo and cumene production operated by Olin in 2023. It has been unclear how hard the three crackers at Terneuzen have been running in the past two years. Dow's internal and contractual demand may be supported by the remaining two crackers. There is no timeline on any restart, but it is likely to be dependent on demand and investment to complete required maintenance. Terneuzen 3 has nameplate capacities of 600,000 t/yr ethylene and 300,000 t/yr propylene. The other operating crackers have a combined capacity of 1,200,000 t/yr feeding local PE production of 880,000 t/yr. Propylene nameplate capacity of these crackers is 590,000 t/yr, which is shipped to Dow and other customers via vessel or in the northwest European pipeline system. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
