Ethylene Carbonate Market

• Rising Need for Ethylene Carbonate in the Production of Lithium-ion Battery Electrolytes

The Global Ethylene Carbonate Market Industry experiences a notable surge in demand due to its applications in lithium-ion batteries. As the world shifts towards electric vehicles and renewable energy storage, ethylene carbonate serves as a vital solvent in electrolyte formulations. The increasing adoption of electric vehicles is projected to drive the market, with the industry expected to reach 0.73 USD Billion in 2024. This trend suggests a robust growth trajectory, as manufacturers seek efficient and sustainable materials to enhance battery performance and longevity.

In 2022, Asia Pacific had a dominant share in the market. This is due to elements including a robust industrial base, supportive governmental regulations, and the availability of low labour costs that motivate important players to invest in the area. Along with producing EV lithium-ion batteries, the region also leads the world in the manufacture of lithium-ion battery electrolytes. The market is being driven by such reasons.

Due to the existence of huge firms in the chemical and automotive industries, North America is regarded as one of the primary product markets. Over the past ten years, North America has seen a steady increase in car utilization. The need for ethylene carbonate is growing as a result. Additionally, the U.S. market experienced strong demand for EV vehicles during the first quarter of 2022, which is anticipated to benefit the industry.

In September 2021, KPX Chemical, a producer of polyurethanes in Korea, and Huntsman Corporation, a chemical manufacturer in The Woodlands, have formed a joint venture called KPX Huntsman Polyurethanes Automotive Co. The joint venture will operate a specialist polyurethane production facility at KPX Chemical's Ulsan project, which will supply polyurethane to Korean automakers.

In June 2021, Huntsman Corporation, announced the production capacity expansion of Texas's current ethylene carbonate by mid-2023.

Figure 2: ETHYLENE CARBONATE MARKET, BY REGION, 2022 & 2030 (USD BILLION)Source: Secondary Research, Primary Research, Market Research Future Database and Analyst Review

The market rivalry is heavily influenced by a number of variables, including the needs of various industries, geographic location, market leaders and major participants, as well as the skills and production capacities of these organizations. To increase their market share, manufacturers are concentrating on expanding their product lines while also leaning towards sustainable production.