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Methyl ethyl carbonate EMC is also an important solvent in lithium batteries, accounting for approximately 30% to 40% of the electrolyte, especially up to 70% in high nickel ternary battery electrolytes and liquid lithium salts.

Overseas customers have a huge demand for EMC solvents. Half of the company's EMC production needs to be exported, and most of it supplies downstream Tianci materials. "The person in charge said that since the price of industrial grade DMCs plummeted at the end of last year, we have made adjustments in production, only producing and selling battery grade DMCs. At the same time, we have purchased low-priced industrial grade DMCs such as Hualu Hengsheng and Zhongyan Hongsifang to produce synthetic EMC. This has resulted in significant profits, with a gross profit of over 10000 yuan per ton. The industrial carbonate industry has excess production, which actually benefits the company's high-end products DMC and EMC solvents, resulting in a sharp increase in profits in the first quarter.

We are still making technological improvements to the original equipment, expanding production, and building a new set of 50000 ton EMC equipment, "said the company's source.

According to Shi Dashenghua's announcement on March 30, 2021, the company plans to invest in the construction of a 50000 ton/year lithium battery material expansion project. The estimated investment for the project is RMB 116.2736 million. The project is located at No. 198 Tongxing Road, Kenli District, Dongying City, covering an area of 1128 square meters. The construction content of the project is a 50000 ton/year methyl ethyl carbonate device.

Battery grade solvent barrier is extremely high

R&D and technological transformation cycle over ten years

The DMC industry expansion competition and the competition of different process routes will break the inherent pattern of the industrial grade DMC industry. DMC is accelerating its transition from a fine chemical to a bulk chemical, and the excess risk is intensifying, which will benefit high-end battery grade solvent production companies.

Industry insiders have bluntly stated, "The industrial grade carbonate market has become severely saturated, and in the future, only one or two high-end battery solvent companies can survive. Differentiated development is the absolute principle

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