Polyvinylidene Fluoride PVDF market demand explodes

On August 9, Lianchuang (Stock 300343) released its 2022 semi-annual report. In the first half of the year, the company achieved revenue of 1.194 billion yuan, a year-on-year increase of 63.02%; net profit attributable to the parent was 673 million yuan, a year-on-year increase of 1325.58%. The main reason is that the sales unit price of the company's main products increased compared with the same period of the previous year and the sales revenue of the new product PVDF was realized.

Among them, the subsidiary Shandong Huaan New Materials achieved a revenue of 935 million yuan and a net profit of 597 million yuan. The main products are lithium battery grade PVDF products.

CATL guarantees that the quantity of lithium battery-grade PVDF purchased by Huaan New Materials every year is 80% of the total annual PVDF output. Among them, the total purchase volume of R142b by the end of December 2021 shall not be less than 1,700 tons; in 2022, it shall not be less than 7,200 tons.

Based on 1.8-2 tons of PVDF (2-2.3 tons if recycling is not considered), 7200 tons of R142b can produce 3600-4000 tons of PVDF, corresponding to about 72-80GWh of power batteries.

PVDF is mainly used as battery cathode binder and separator coating material in lithium batteries. The addition of PVDF accounts for 3.5% and 1.5% of the demand for LFP cathode materials and ternary materials, respectively. The increase in power battery shipments will directly drive the growth of PVDF market demand.

As the downstream market continues to heat up, the gap between the supply and demand of lithium battery PVDF continues to widen, the production capacity of the superimposed raw material R142b is constrained, and the market supply is seriously insufficient. Since 2021, the price of lithium battery PVDF has been rising.

In the first half of 2022, the price of lithium battery PVDF once rose to more than 500,000 yuan/ton, an increase of more than 400% compared with the price of 110,000 yuan/ton at the beginning of 2021. The market price of its main raw material R142b also exceeded 200,000 yuan/ton. The cumulative increase is more than 10 times.

It is expected that due to the limited production capacity of PVDF for lithium batteries in China, and the production capacity of ordinary PVDF cannot be converted into lithium battery grade PVDF in a short time, the construction of the superimposed raw material R142b is strictly controlled and the production expansion is slow, resulting in the slow release of new production capacity of domestic lithium battery PVDF production capacity, and the supply gap is difficult to make up in the short term.

With the further increase in sales of new energy vehicles in the second half of the year, the lithium battery PVDF market is expected to maintain a high prosperity in 2022, which will support PVDF prices and boost PVDF companies' annual performance to further increase.

Reported by AOOSER Battery Technology

2022-08-11

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