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2023 Year Strong Growth in BDO Consumption Driven by NEVs

release date：2024-03-04　Views：515

BDO (1,4-butanediol) is an important organic and fine chemical raw material, widely used in healthcare, chemicals, textiles, papermaking, automobiles and many other fields. BDO can be used to produce tetrahydrofuran (THF), polybutylene terephthalate (PBT), gamma-butyrolactone (GBL), PU resin, coatings, plasticizers, and brighteners for the solvent and electroplating industries.

NEVs Drive Strong Growth in BDO Consumption

N-Methyl-2-Pyrrolidone (NMP), which is synthesized from BDO, is an important raw material in the manufacturing of lithium-ion batteries. It is mainly used to produce positive electrode slurries and conductive agents. In addition, NMP can be used as photoresist remover and semiconductor cleaner in the field of electronic chemicals, a reaction solvent for special polymers such as PPTA, PPS, and PI in polymer synthesis, as well as being used in the insulation varnish, pharmaceutical, agrochemical, and petrochemical industries. Due to the rapid development of the new energy vehicle (NEV) industry, NMP consumption by lithium batteries accounts for nearly 80% of the total.

Chinese NMP industry is in a period of rapid expansion, with projects being implemented in various regions in recent years, leading to significant changes in the industry landscape. China’s capacity of NMP reached 1.17mtpa in 2023, according to Pudaily.

Based on current processes, 1 tonne of NMP consumes 0.9 tonnes of GBL, which in turn consumes 0.97 tonnes of BDO. As a raw material for lithium batteries, NMP has benefited from the rapid growth of NEV industry, and adhesive for lithium batteries has become the fastest-growing application area of NMP. Currently, NMP is mainly used as adhesive binder in the production of positive electrodes for batteries, and its consumption is large, with a consumption ratio of NMP in binder being about 20:1.

China’s BDO Capacity & Output

In 2023, Chinese new BDO capacities included Inner Mongolia Huaheng’s 208ktpa BDO facility and MarkorChem’s 100ktpa facility in Xinjiang. Currently, Dongyuan Scien-Tech remains the largest producer of BDO and related downstream products in China, with a BDO capacity of 380ktpa.

Although the growth rate of output slightly exceeded the growth rate of capacity, the situation of overcapacity remains very serious. In 2023, operating rates of BDO fluctuated around 50-70%, with an annual average operating rate of about 85%.

China’s BDO Consumption

PBT and PTMEG remained the two major downstream industries of BDO. In 2023, BDO consumption in these two sectors showed a recovery growth.

Meanwhile, the ban on fuel vehicles in multiple countries and strong support for the new energy sector have led to the rapid rise of the new energy industry, represented by NEVs and photovoltaics. As the core power storage device in this industry, the demand for lithium batteries has surged, promoting the rapid growth of the GBL-NMP industry chain, and this upward trend has also accelerated the consumption of BDO.

New highlights of the report include:

Sustainable Development: Impact of international carbon tariffs on the BDO industry chain, bio-based BDO.

Market Outlook: Price forecasts for BDO and PTMEG for the next three years (2024-2026).

Downstream Industries: BDO consumption in the NEV industry, and an analysis of the GBL-NMP industry chain.

If you are interested in the growth points and consumption of BDO in China in 2023, you can subscribe to China BDO-THF-PTMEG Market Report 2023, published by PUdaily.

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2023 Year Strong Growth in BDO Consumption Driven by NEVs

2023 Year Strong Growth in BDO Consumption Driven by NEVs

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