The Increased Demand for Lithium-Ion Pushes Up the Price Of Ethylene Carbonate

Ethylene Carbonate (EC), the primary material for Lithium battery electrolyte, continues to grow in price in January, rising from INR 1421/MT to INR 1473/MT. Due to the evolution of electric vehicles and the localization of Lithium-ion battery production, the Indian market has seen substantial growth in Ethylene Carbonate. Huntsman, a global player, has developed a range of new high-purity grades of Ethylene Carbonate for EV battery applications to accommodate this rising demand.

Due to the paucity of Ethylene Carbonate, the price of the commodity has risen. On the demand side, the electric vehicle market is expanding at a breakneck pace. Ethylene Carbonate is in high demand for Lithium batteries. On the supply side, environmental inspections and repairs recently disrupted some production capacity, limiting short-term supplies once more. Ethylene Carbonate has the highest dielectric constant and the lowest substitution of all the electrolyte solvents. The Lithium-ion downstream market is strong and growing. Lithium demand in the automotive sector has been steadily increasing since the beginning of the year. As a result, the cost support has remained robust, maintaining the bullish market sentiment.

Ethylene Carbonate is a solid that is somewhat yellowish in colour and has a distinct odour. The key benefit of EC is that it is non-toxic. Li-ion batteries, according to some manufacturers, are the most expensive component in an electric vehicle, accounting for 40-50 percent of its cost. In the last year, the price of battery-grade Lithium carbonate has more than tripled. "It is anticipated that demand for Lithium-ion electrolyte will expand by a significant factor in competition with sodium ion, which has a better performance relatively," according to ChemAnalyst. Because of the rising demand for electric vehicles, the automotive sector is continuing to rise. As EC is a majorly imported commodity. The pricing trend will likely maintain a similar uptrend.