Dimethyl Carbonate Market Overview

Dimethyl Carbonate is a colorless, organic compound that is used as an organic solvent. Dimethyl carbonate is manufactured by the reaction of phosgene and methanol. It can also be produced industrially by transesterification of ethylene carbonate or propylene carbonate and methanol. DMC is used in the production of polycarbonates, which are transparent hard plastics with excellent heat resistance properties. It can also be used to manufacture pesticides in agriculture.

Based on applications, the Dimethyl Carbonate Market is segmented into Polycarbonate Synthesis, Battery Electrolytes, Solvents, Reagents, and Others (Fuel additives, etc.). Dimethyl carbonate is used for the production of polycarbonates. The demand for polycarbonate is increasing because it is environment-friendly and a recyclable polymer with a wide range of applications in the automotive, electrical, and electronics industries. Dimethyl Carbonate is also used in the pharmaceutical industry for the manufacture of drugs and medicines. It is used as a solvent for components that are insoluble in water, and it can dissolve substances like oils, fats, resins, and waxes.

Dimethyl Carbonate Region Analysis

Asia Pacific region holds the largest share in the Dimethyl Carbonate Market because of the growing demand for the synthesis of polycarbonate in countries like China, and Japan, and the growing demand for lithium-ion batteries from the electronics and automotive industries in this region will positively impact the Dimethyl Carbonate market in the forecast period. The US is the second largest producer of plastics, due to its high production volume, the country is predicted to be a significant consumer of DMC.  The demand for Lithium-ion battery manufacture has also increased due to the growing production of electric automobiles in the US.

In 2022, UBE Corporation announced the setup of its first DMC plant in the US. The plant is set to start operations by 2025 with a nameplate capacity of 100 kilotons. This facility intends to use natural gas as a starting material to lower CO2 emissions.

Rising demand for Lithium-Ion batteries

Lithium-ion batteries are commonly used in automobiles and electronics because of their efficiency and effectiveness. The rising demand of electric cars due to the high cost of gasoline and fossil fuels will drive the Lithium-Ion batteries demand which will positively impact the Dimethyl Carbonate Market. Lithium-ion batteries have high energy density and a long shelf life. Lithium-ion batteries are also widely used in consumer electronics, such as smartphones, laptops, and tablets, due to their high energy density, long cycle life, and lightweight design.

Various governments around the world are promoting the adoption of electric vehicles and renewable energy, which is driving the demand for lithium-ion batteries. Some governments are also providing incentives for the development of lithium-ion battery technology.

Several governments are introducing projects to increase the use of Lithium-Ion batteries. For instance, Europe announced the ELIBAMA project (European Li-Battery Advanced Manufacturing for Electric Vehicles) which promotes the production of Lithium-Ion batteries. The Indian government has also introduced initiatives to increase the use of renewable resources. Maruti Suzuki is collaborating with several companies to manufacture Lithium-Ion batteries for electric vehicles.

LOTTE Chemical is starting the production of EMC (Ethyl Methyl Carbonate), DEC (Di Ethyl Carbonate), EC (Ethylene Carbonate), and DMC (Dimethyl Carbonate) through technological development for the first time in Korea. The company will be able to product the four major materials for electrolyte organic solvents, which are lithium-ion battery materials used in EVs.

Harmful Impact of Dimethyl Carbonate

Dimethyl carbonate is a highly volatile compound, which can pose safety concerns during its handling, transportation, and storage. Its volatility also makes it challenging to work within certain industrial applications. During the traditional manufacturing of DMC, dangerous gases such as phosgene and carbon monoxide produce hazardous by-products such as sodium chloride. Sodium Chloride if produced in big quantities can damage the environment. Most of the product is composed of extremely poisonous substances that, even in small doses, can cause death or severe health issues. Methanol Phosgenation is also one of the reasons to limit the growth of the Dimethyl Carbonate Market as the by products produced can have a negative impact on the surroundings.