Ethylene fluorocarbonate (FEC): The \"core driver\" for improving the performance of lithium batteries”

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I. Product Definition: Ethylene fluorocarbonate (FEC) is a fluorinated organic compound that appears as a colorless and transparent liquid at room temperature. The fluorine atoms in its molecular structure endow it with unique electrochemical properties, making it a key additive in lithium-ion battery electrolytes. Compared to ordinary carbonates, FEC boasts excellent film-forming properties, good chemical stability, and resistance to low temperatures. It can effectively improve the current efficiency and charge-discharge cycle performance of batteries, thereby enhancing their cycle life and safety. II. Core Applications 1. Key additive for lithium-ion battery electrolytes: By forming a stable solid electrolyte interphase (SEI) on the surface of the battery’s negative electrode, it reduces the decomposition of the electrolyte, thereby significantly improving the battery’s cycling stability and safety as well as extending its service life. It is the key factor that ensures high safety and high-rate performance of batteries. FEC holds an important share in the electrolyte additive market; together with vinylene carbonate (VC), it accounts for 65% of the total market share. Other applications: FEC can also be used as an intermediate in pharmaceuticals and pesticides, but its market size and level of attention are much lower compared to its use in lithium-ion batteries. III. Production Process and Technical Sources 1. The production processes for FEC mainly include the halogen exchange method, direct fluorination method, and electrochemical fluorination method, among others. Among them, the halogen exchange method (using vinyl chlorocarbonate as a starting material and reacting it with a fluorinating agent) is the current mainstream synthesis process due to its advantages such as few by-products, high quality of the final product, and high yield. Domestic leaders such as Jiangsu Huasheng Lithium Battery have developed a synthesis route that involves the chlorination of ethylene carbonate to produce chloroethylene carbonate, which is then used to manufacture FEC; this approach has been put into industrial use, resulting not only in reduced environmental pollution but also in an increased yield of the product. In terms of technical capabilities, Japanese and Korean companies had certain advantages in this field initially, but China, thanks to its complete industrial chain, scale advantages, and continuously improving technical skills, has become one of the world’s main producers of FEC. Domestic products not only meet domestic demand but are also exported in large quantities. IV. Major manufacturers, current production capacity, and planned production capacity 1. Overall domestic production capacity: According to various industry reports, the main companies in China that produce FEC on a commercial scale are Jiangsu Huasheng, Yongtai Technology, Fuxiang Pharmaceutical, Jiangsu HanKang, etc. By 2024, the total domestic FEC production capacity had reached 40,000 tons. China’s FEC production capacity is expected to continue growing. (1) Huasheng Lithium Battery: As one of the leading suppliers in the market, it has an annual production capacity of 14,000 tons for VC and FEC products, of which the FEC production capacity is around 4,000–7,000 tons. (2) Fuxiang Pharmaceutical: It has established a production capacity of 8,000 tons of VC products and 3,700 tons of FEC products per year, placing it among the leaders in the industry. (3) Yongtai Technology: It has an FEC production capacity of 3,000 tons per year, with plans to expand this capacity to 5,000 tons per year. (4) Jiangsu Hankang: The combined VC and FEC production capacity exceeds 10,000 tons. (5) Others: Shandong Genyuan New Materials (a leading VC enterprise), Suzhou Hua Yi (with VC+FEC production capacity of 3,000 tons), Taihe Technology (with planned FEC production capacity of 10,000 tons), etc. 2. Market competition landscape: The FEC market in China is highly concentrated, with the top three companies accounting for 75% of the market share. International manufacturers: Japanese companies such as Mitsubishi, Ube, and Mitsui possess the capabilities for synthesis and production, but they focus mainly on the development of new additives or electrolytes; therefore, the production volume of FEC as a conventional additive is relatively low. V. Market Conditions and Product Profits 1. Market Size and Demand: Driven by the downstream lithium battery industry, there is strong demand for FEC products. In 2021, the global demand for FEC was approximately 7,500 tons, with China’s demand accounting for around 6,200 tons. It is estimated that by 2026, China’s demand for FEC will reach 25,000 tons. In terms of market size, the scale of China’s FEC market exceeded 2 billion yuan in 2024, and it is expected to surpass 4 billion yuan by 2030. 2. Product prices: FEC prices fluctuate significantly due to factors such as supply and demand dynamics and raw material costs. Market data shows that during October–November 2025, driven by tight supply and demand, VC/FEC prices surged. The actual transaction prices in the current market (especially for small orders) are significantly higher than this level, and the market is in an upward trend. 3. Product profitability: Due to the barriers associated with FEC production technology and its role as a key material for battery performance, its profitability is generally higher than that of ordinary chemical products. Increased market concentration also helps leading companies maintain a certain profit margin. VI. Industry Trends 1. Continuous demand growth: The rapid development of the electric vehicle and energy storage markets is the main driving force behind the demand for FEC. As battery technology evolves toward higher energy density and faster charging, the performance requirements for additives such as FEC will also continue to increase. 2. Technological advancement and sustainability: Future technological developments will focus more on improving battery performance (such as energy density and fast charging), as well as on finding cleaner and more sustainable synthesis methods. For example, emerging green synthesis methods such as photocatalysis are under investigation. 3. Increased industry concentration: There are many participants in China’s FEC market at present, but with technological advancements and increased competition in the industry, market shares are expected to become more concentrated among leading companies that possess advantages in terms of technology, scale, and cost