According to the Times Weekly, lithium battery electrolytes are experiencing a “roaring” market surge.

Following the “daily price fluctuations” of key material lithium hexafluorophosphate, the core electrolyte additive vinyl carbonate (VC) has also seen explosive price growth. Data indicates battery-grade VC prices have surged over 50% since September 2025.

China's leading VC manufacturers are operating near full capacity with all production sold out. Amid tight VC supply-demand dynamics, shortages are expected to persist in the short term. Currently, effective VC production capacity remains severely constrained.

While VC prices have recently surged significantly, future capacity expansion will still depend on market conditions.

Electrolyte consists of raw materials such as organic solvents, lithium hexafluorophosphate, and additives. VC is an indispensable core functional additive in lithium battery electrolyte. Although it accounts for only 3%-5% of electrolyte costs, its excellent film-forming properties directly impact battery cycle life, safety, and high-temperature stability.

This material, accounting for less than 5% of the cost, has also experienced a surge in prices amid the rising heat of the lithium battery industry chain.

Data shows that battery-grade VC prices have risen over 50% since September 2025. On November 14, VC market prices continued their upward trend, with mainstream on-site negotiations at RMB 80,000-130,000/ton (ex-factory, letter of credit payment), reflecting tight on-site supply. This contrasts sharply with the November 7th range of 56,000-66,000 yuan/ton (bank acceptance, ex-factory).

Current VC demand remains robust with strong end-user consumption. Amidst supply constraints, spot prices are undergoing a rapid upward cycle. Medium-to-long term projections indicate VC prices will continue their upward trajectory.

Over the past two years, VC prices have remained at bottom levels, with market prices frequently falling below production costs—a situation that has caused some companies to experience inverted gross margins. Currently, market demand for power batteries and energy storage batteries has surged significantly, driving increased demand for upstream electrolyte additives.

At present, Chinese enterprises' relevant production capacity is operating at full capacity and sales volume, with capacity utilization rates consistently high.

The electrolyte market uptrend is projected to persist through December this year or January next year. VC may see modest upward testing over the next two months, with further developments to be monitored.

Chinese companies are poised to expand production. Currently, alleviating the VC supply-demand imbalance depends on factors such as the resumption timeline for idled production facilities, the restart schedule for companies with planned VC expansion projects, and end-market demand.

However, even if relevant companies proceed with production plans, it will be challenging to rapidly fill the market gap in the short term.

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