PVDF Production Capacity, Demand-Supply, Pricing and Market Outlook Until 2032

The global PVDF market was valued at USD 1.9 billion in 2023 and is anticipated to grow at an annual average growth rate of 17%, reaching USD 4 billion by 2032. The strong growth in PVDF consumption can be attributed to its increasing demand in electric vehicles and the electrical and electronics industry. In 2023, the global PVDF production capacity stood at 200 Kiloton, with approximately 70% of the capacity located in China. 

By the end of 2032, the global PVDF production capacity is estimated to exceed 420 kilotons, with China accounting for the majority of the new capacity addition. China s PVDF capacity was estimated to be around 124 kilotons in 2022 and is expected to double by 2032. The majority of capacity additions are expected to occur in the mid-term forecast by key players such as Arkema, Inner Mongolia Wanhao Fluoro Chemical Co., Ltd., Kureha Fluoropolymers Co., Shaowu Yonghe Jintang New Materials Co., Ltd., Inner Mongolia Joint Fluorocarbon New Material Co., Ltd. (JV Lecron Group and Jiangxi Black Cat), Inner Mongolia 3F, Lecron Group, and Solvay Specialty Polymers Co., Ltd.

Apart from China, France is expected to see an increase in PVDF production capacity, with Solvay and Arkema planning to expand capacity at Tavaux and Pierre-Benite, respectively. Solvay has invested around USD 320 million to expand its Tavaux, France capacity to 35 kilotons, with the plant expected to be fully operational by December 2023. With this capacity expansion, Solvay will become the largest PVDF producer in Europe. All these capacity additions are driven by the rapid growth in electric vehicles, leading to exceptional demand for PVDF in lithium-ion batteries as a binder and separator material, optimizing energy storage efficiency.

In recent years, the PVDF market has witnessed an upsurge in demand due to its increasing use in lithium-ion batteries. A lithium-ion battery consists of components such as electrodes, cathodes, anodes, a separator, and an electrolyte mixture. The electrodes are coated with aluminum and copper current collectors to facilitate the electrochemical process. Polyvinylidene fluoride (PVDF) acts as a connecting agent between electrode species and adheres them to electricity-based collectors, increasing the lifespan and energy density of electrodes. PVDF binders offer properties such as high electrochemical stability, thermal stability, a low melting point, and high chemical resistance to solvents.

In 2023, Kureha Corporation announced its plans to boost its PVDF production capacity at its Iwaki factory in Fukushima, Japan. Kureha will expand the capacity from 11 kilotons to 20 kilotons by March 2027 through debottlenecking, and an additional new production line of 8 kilotons will also be installed for capacity expansion.

In November 2023, Solvay and Orbia collaborated to establish a joint venture in the United States dedicated to producing high-quality PVDF for use in batteries. The venture represents a substantial investment of around $850 million, with Solvay holding a majority ownership stake of 51%, while Orbia possesses 49%. The commencement of engineering and deployment activities is slated for the end of 2023, and the project is scheduled to reach completion by the first half of 2026. Upon completion, this facility marks the sole battery-grade suspension PVDF plant in North America, with an anticipated production capacity of 20 kilotons.

The PVDF binder market is driven by growing demand for lithium-ion batteries globally and new technology developments in batteries. Lithium-ion batteries are used in a variety of electronic gadgets and components, including pacemakers, digital cameras, laptops, smartphones, watches, surveillance systems, alarm systems, and electric vehicles. The growth of lithium-ion batteries is primarily driven by the rising demand for battery electric vehicles globally. Lithium-ion batteries are the preferred choice in electric vehicles due to their properties, such as improved energy density, longer life cycle, wide temperature operational range, fast charging, and self-discharge. 

The increasing adoption of electric vehicles, driven by sustainability awareness, advancements in battery technology, and government incentives, is fueling the lithium-ion battery market. The sale of EVs is increasing due to the growing demand for light-duty vehicles to reduce emissions. For instance, according to the International Energy Agency, global electric vehicle sales exceeded 10 million units in 2022. Road transport accounts for 15% of global energy-related emissions, and electric vehicles play a key role in decarbonizing road transport. The market share of electric cars in total EV sales grew from 4% in 2020 to around 14% in 2023.

China is one of the major markets for electric vehicles globally. According to data from the China Association of Automobile Manufacturers (CAAM), China manufactured around 2.9 million battery electric vehicles in 2021, marking a year-on-year growth of 166% compared to 2020. According to the International Council on Clean Transportation, China s sales of electric vehicles grew by 150% in 2021, reaching around 3.5 million units compared to the previous year. Europe followed China, with around 2.3 million units sold in the region in 2021. Germany, France, the UK, Italy, Sweden, the Netherlands, and Norway were among the top markets for EV sales in Europe.

Government incentives also play a key role in the global growth of electric vehicles. For example, the Indian government introduced the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme to promote electric mobility in the country. The Chinese government introduced a tax break incentive package in 2023 amounting to USD 72.3 billion over a span of 4 years to boost the sale of electric vehicles and other green cars in the country.

Additionally, developments in battery technology by automakers will also boost the PVDF binder market globally. For example, Toyota is investing in solid-state battery technology for electric vehicles and is expected to commercialize the production of solid-state batteries by 2025. Solid-state batteries are expected to reduce charging time, increase capacity, and lower the risk of fire associated with lithium-ion batteries. The University of Texas is developing lithium-sulfur battery technology for use in electric vehicles. The new battery will provide higher energy density than lithium-ion batteries and will have a lower cost of production using sustainable materials. Lithium-sulfur batteries will be more environmentally friendly due to their raw materials being sustainable. Currently, lithium-sulfur batteries have a shorter lifespan than lithium-ion batteries, and solutions are being developed to address this challenge.