Summary: The completion information of the PVDF project (phase II) of Hubei Fluorine was publicised in mid-May 2024.

On 11 May, 2024, the completion information of the 25,000 t/a polyvinylidene fluoride (PVDF) production line and support facility project (phase II) of Hubei Fluorine New Materials Co., Ltd. (Hubei Fluorine) was disclosed. This project, with a total investment of USD169.03 million (RMB1.20 billion), is located in Qianjiang Economic Development Zone, Qianjiang City, Hubei Province. The main product of this project is PVDF. This project is divided into two phases and the first phase was completed and entered trial production in July 2022.

The first phase project contains capacity of 12,500 t/a PVDF, 13,500 t/a vinylidene fluoride (VDF), and by-products of 22,500 t/a difluorochloroethane (R142b), 81,250 t/a hydrochloric acid, 3,375 t/a sodium hypochlorite, and 625 t/a off-grade PVDF; the second phase includes 12,500 t/a PVDF, 13,500 t/a VDF, and by-products of 22,500 t/a R142b, 81,250 t/a hydrochloric acid, 3,375 t/a sodium hypochlorite, and 625 t/a off-grade PVDF.

In 2021, when Hubei Fluorine handled relevant approval procedures of this project, market demand for battery grade PVDF was large and China's new energy vehicle market also developed rapidly, with numerous projects of Li-ion battery materials being established. In 2023, the Li-ion battery material industry encountered overcapacity after the projects, including PVDF projects, established in 2021 were put into production. As of April 2024, prices of Li-ion battery grade PVDF reached USD9,219.79/t (RMB65,455/t), down by around 90% compared with the highest price of USD8,4514.18/t (RMB600,000/t). PVDF demand from downstream industry may barely improve and prices are likely to keep at a low level in the future as new energy vehicle demand weakens and market shares of battery electric vehicles decrease.