The rapid price surge of VC (vinylene carbonate), a key electrolyte additive, has driven strong market interest in leading VC-related stocks. Companies such as Capchem and Jiangsu Hsc New Energy Materials Co., Ltd. currently lead in VC production capacity.
As of November 19, the average market price of VC reached 170,000 yuan per ton, marking a 119.35% increase from the previous week. This price rally has fueled a surge in VC-related stocks, including Sunvim Group (002083.SZ), Jiangsu Hsc New Energy (688353.SH), Fujian Yongan Pharmaceutical (300497.SZ), Yongtai Technology, and Haike New Materials, with multiple trading limit-ups recorded. Since early November, these companies have seen stock price gains exceeding 50%, with Jiangsu Hsc New Energy leading at a 138% increase.
Amid short-term supply-demand imbalances, companies like Capchem (300037.SZ), Jiangsu Hsc New Energy, Sunvim Group, and Fujian Yongan Pharmaceutical—with existing or upcoming VC production capacities exceeding 10,000 tons—stand to benefit significantly from the price surge.
**Supply-Demand Mismatch Drives 119% Weekly Price Jump** The growing demand for energy storage and power batteries has boosted the electrolyte raw materials market. Following the sharp rise in lithium hexafluorophosphate prices, VC, a core electrolyte additive, has also experienced a rapid price increase.
According to BaiChuan Info, the lithium battery additive industry chain has seen accelerating price hikes since November 12. By November 19, VC prices surged 19.30% from the previous day, 119.35% from the previous week, and 223.81% from the previous month. Compared to the July low of 45,000 yuan per ton, VC prices have risen 277.78% cumulatively.
VC serves as an organic film-forming additive and overcharge protection agent in lithium battery electrolytes, helping inhibit electrolyte decomposition to enhance battery efficiency and cycle life. The current price surge is driven by surging demand and constrained supply, with the energy storage market becoming a major growth driver for electrolyte demand.
CESA Energy Storage Application Branch data shows that from January to September 2025, China’s new overseas energy storage orders/cooperation reached 214.7GWh, up 131.75% year-on-year. Recent large electrolyte procurement orders secured by Tinci Materials further confirm robust downstream demand.
CMSC Research notes that VC, though accounting for less than 1% of battery costs, is irreplaceable in electrolytes, with an estimated value of 2.5 million yuan per GWh. Downstream customers have high price tolerance, and recent supply tightness has led some battery manufacturers to urgently restock VC.
On the supply side, low VC prices in recent years discouraged capacity expansion, leaving little new supply. Maintenance or shutdowns at key producers like Shandong Genyuan and Zhejiang Yipu have further tightened supply. CMSC Research indicates that VC supply elasticity is low, with full industry utilization rates and rising prices likely to persist due to the 12-month lead time for new capacity.
**Leading Producers Operating at Full Capacity** Key listed companies with significant VC production capacity include Capchem, Jiangsu Hsc New Energy, Sunvim Group, Fujian Yongan Pharmaceutical, Yongtai Technology, Haike New Materials, Lianhe Chemical Technology, and Raynovent. Many have reported full production and sales of VC products.
- **Jiangsu Hsc New Energy** has an annual VC and FEC (fluoroethylene carbonate) capacity of 14,000 tons and plans to invest 950 million yuan in a 60,000-ton VC project. - **Capchem**’s subsidiary Hankang Electronic Materials produces VC and FEC, with existing VC capacity of 10,000 tons and an additional 5,000 tons under construction, expected by H2 2026. - **Fujian Yongan Pharmaceutical** has 8,000 tons of VC and 4,000 tons of FEC capacity, with plans to expand VC output to 20,000 tons/year. - **Sunvim Group**’s subsidiary Sunvim New Energy has 10,000 tons of VC production capacity. - **Yongtai Technology** produces 5,000 tons/year of VC and 3,000 tons/year of FEC, alongside other lithium battery materials. - **Haike New Materials** has a 12,700-ton/year additive capacity, including VC, FEC, and LiFSI. - **Lianhe Chemical Technology** is trialing a 4,000-ton/year VC facility. - **Raynovent**’s 1,500-ton VC and 500-ton FEC project is ready for rapid production if market conditions permit.
**Profitability and Future Growth Prospects** Despite earlier price pressures, some VC producers maintained profitability in the first three quarters of 2025. Capchem led with 748 million yuan in net profit, followed by Sunvim Group (296 million yuan), Raynovent (281 million yuan), Lianhe Chemical Technology (232 million yuan), and Yongtai Technology (33 million yuan).
Companies like Capchem and Sunvim Group benefit from diversified operations or integrated electrolyte supply chains. Capchem’s battery chemicals segment, contributing 66.27% of revenue, grew 22.77% YoY in H1 2025. Sunvim Group’s VC sales rose 71.92% YoY to 2,793.69 tons in H1.
Yongtai Technology returned to profitability, driven by expanded lithium battery material production, while Lianhe Chemical Technology’s Q3 net profit jumped 90.9% YoY due to higher product prices and new contributions.
With energy storage demand continuing to drive electrolyte growth, VC producers with strong capacity and integrated operations are well-positioned for sustained gains.
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