Hitting a new high in nearly four years, the electrolyte additive VC has registered a simultaneous rise in both volume and price, and the segmented lithium battery sector is ushering in a major growth opportunity.
Recently, the price of Vinylene Carbonate (VC), an electrolyte additive for lithium-ion batteries, has continued to rise, drawing strong attention from the capital market. Data from BAIINFO shows that as of July 27, the average price of VC products stood at 220,000 yuan per ton, with a single-day increase of 20,000 yuan per ton, marking a 10% surge. This price has exceeded the previous peak of 175,000 yuan per ton recorded in December 2025, and has once again broken through the 200,000 yuan per ton threshold after more than four years.
Multiple Positive Factors Converge, Pushing VC Prices Back to an Upward Trajectory
Vinylene Carbonate is one of the most widely used and critical film-forming additives in lithium-ion battery electrolytes, accounting for approximately 1% to 3% of the electrolyte's total mass. During the first charge-discharge cycle of a lithium-ion battery, VC preferentially undergoes reductive decomposition on the surface of the negative electrode, forming a dense and stable solid electrolyte interphase (SEI) film. This film physically separates the electrode materials from the electrolyte, significantly improving the battery's cycle life, safety performance, and adaptability to high and low temperature environments.
Looking at the price trend of VC in recent years, driven by the explosive growth of the new energy vehicle sector in 2021, VC prices soared to an all-time high of 475,000 yuan per ton. Subsequently, large-scale capacity expansion across the industry led to a rapid price decline, with the low point in 2025 dropping to 46,000 yuan per ton. In the fourth quarter of 2025, the industry's supply-demand balance improved, and prices rebounded quickly. In the first half of 2026, VC prices experienced a temporary correction, but resumed their upward momentum in mid-to-late June.
This sharp recent price surge is primarily the result of the combined impact of supply and demand dynamics. On the demand side, the new national safety standard for power batteries, "Safety Requirements for Traction Batteries Used in Electric Vehicles" (GB38031-2025), which came into effect in July 2026, mandates that batteries must not catch fire or explode within 2 hours after thermal runaway. This regulation will force battery manufacturers to further increase the proportion of VC added to their products.
At the same time, the energy storage industry continues to expand. In July 2026, the total scheduled production of lithium-ion batteries in China reached approximately 283 GWh, of which energy storage cell production accounted for about 121.4 GWh, representing 42.89% of the total. Notably, energy storage batteries require a higher dosage of VC compared to power batteries. While power batteries typically use a VC addition ratio of 1% to 3%, energy storage batteries generally have a ratio exceeding 3%, and some large-format cells even use more than 10% during the secondary electrolyte injection process, directly driving up overall VC consumption.
Industry insiders point out that VC additives are extremely vital to the cycle life and safety performance of lithium-ion batteries. As the construction of new national energy storage systems and new energy bases accelerates, the demand for electrolytes and their additives will continue to rise accordingly.
On the supply side, with the continuous phase-out of earlier production capacity, superimposed by production restrictions, equipment maintenance, and historically low industry inventory levels, the supply-demand mismatch has kept VC prices on a strong upward trend. According to data from the High-Gain Industry Research Institute (GGII), the domestic VC production capacity for lithium-ion batteries at the end of 2025 was approximately 100,000 tons, which was already insufficient to meet the production schedules of battery manufacturers in the first half of this year.
In a research report, CITIC Securities stated that by the end of 2026, the nominal VC production capacity will reach 192,000 tons, but the actual effective supply may only be 115,000 tons. New production capacity is expected to be released primarily in the fourth quarter of 2026, meaning short-term supply will remain tight. GGII predicts that the tight supply situation for VC additives in 2026 will likely persist throughout the year and continue into the first half of 2027.
Leading Enterprises Are Accelerating to Capture Industry Dividends
Against the backdrop of continuously rising prices, leading enterprises in the industrial chain are expected to be the first to benefit. At the same time, multiple companies are speeding up their capacity expansion plans to seize the opportunities brought by the industry's growth.
Huasheng New Material (688353.SH) is currently one of the enterprises with the largest production capacity, boasting an annual output of 14,000 tons. In July 2026, the company announced plans to adjust its Hubei-based 60,000-ton annual project, canceling the original two-phase construction plan and instead implementing full one-time investment and construction, while maintaining the total investment scale unchanged at 1.6 billion yuan.
Furi Co., Ltd. (002083.SZ) has established a complete industrial chain covering upstream intermediates to battery-grade VC. The company currently has an annual refined VC production capacity of 10,000 tons, ranking among the top in the domestic industry. During a recent investor survey, Furi Co., Ltd. revealed that its VC products have entered the peak demand season in the second half of the year, showing a trend of simultaneous increases in both sales volume and price. The supply side is constrained by factors such as environmental regulations and qualification requirements, with no new effective capacity coming online. On the demand side, driven by the growth of the energy storage sector and the steady expansion of the power battery industry, the overall market remains in a tight supply-demand balance, and prices are expected to stay firm or even gain further upward momentum.
Fu Xiang Pharmaceutical (300497.SZ) has seized market opportunities and increased its VC production capacity to 10,000 tons per year. The company stated that in the first half of this year, both sales volume and prices of its VC and FEC products increased, making its new energy business the core driving force for its performance growth. According to the company's disclosure, in the first half of 2026, Fu Xiang Pharmaceutical expects to achieve a net profit attributable to shareholders of between 165 million yuan and 215 million yuan, representing a year-on-year increase of 2487% to 3204%.
Analysts note that leading battery manufacturers are raising higher requirements for the quality, stability, and delivery reliability of additives. Enterprises that truly possess core technological advantages, low-cost production capabilities, and large-scale operation strengths will be well-positioned to capture the dividends of this new industry cycle.