The price of battery-grade VC (Vinylene Carbonate) has risen sharply once again, with spot prices climbing 27.27% over the past month.
On July 10th, Huasheng Lithium Energy adjusted the construction plan for its Hubei-based annual 60,000-ton VC project, scrapping the phased approach in favor of a one-time investment totaling 1.6 billion yuan.
On the same day, Rike Chemical disclosed a major asset restructuring plan to acquire a 70.75% stake in another leading VC firm, Ganyuan New Materials, along with a supporting fund-raising effort.
The following day, Ganyuan formally terminated its nearly four-year-long IPO guidance process.
Earlier, Huasheng Lithium Energy had submitted a listing application to the Hong Kong Stock Exchange, intending to use part of the raised funds for its 60,000-ton VC project.
In June, Yongtai Technology announced an 800 million yuan investment to build a new 50,000-ton VC capacity in Inner Mongolia.
Concurrently, CATL signed a supply arrangement with Yongtai for approximately 90,000 tons of VC in total for the years 2027–2029.
In May, BYD also acquired a 15% stake in the project company for Huasheng's 60,000-ton facility.
These expansions, long-term agreements, equity investments, overseas listings, and mergers are all occurring within the same industry window, yet they are at different stages.
Some projects are still under construction, some transactions are not yet finalized, and the actual execution of procurement agreements depends on follow-up orders.
The common market backdrop they face is the renewed rapid increase in VC spot prices.
Spot Price Jumps Over 27% in a Month
As of July 13th, the spot price for battery-grade VC has risen to 175,000 yuan per ton.
A month ago, this price was around 137,500 yuan per ton, marking a cumulative increase of 37,500 yuan per ton, or 27.27%, over the recent month.
This round of increases accelerated noticeably in late June.
Mid-June procurement prices were still around 120,000 yuan per ton, but by month-end they had reached 150,000 yuan per ton, with some spot quotes hitting 180,000 yuan per ton.
VC producers indicated that industry inventory has fallen to under five days, with manufacturers prioritizing long-term customers and requiring cash-on-delivery for some small and medium-sized orders.
The VC price started rising from around 46,000 yuan per ton in August 2025, briefly reaching 175,000 yuan per ton by December 2025.
After a retreat in the first quarter of 2026, prices began climbing rapidly again from the 120,000–140,000 yuan range in mid-June.
The current price is closer to revisiting the previous peak.
With the peak season for lithium batteries approaching, VC prices may subsequently rise to 180,000–200,000 yuan per ton.
VC is a fine chemical product, and its production involves high-risk processes with stringent requirements for safety, environmental protection, purity, and batch consistency.
After a production line is built, it must undergo debugging, yield ramp-up, and customer qualification, meaning nominal capacity cannot immediately translate into products usable by leading battery and electrolyte companies.
From 2023 to 2024, falling VC prices led to significant declines in capacity utilization, with some smaller firms halting production or exiting the market.
When demand rebounded in the second half of 2025, the previously idle facilities did not simultaneously resume stable supply.
Entering the 2026 peak season, downstream inventory replenishment, producers prioritizing long-term agreements, and the slow arrival of new effective supply have collectively squeezed the volume of tradable goods available in the spot market.
Most New Capacity Yet to Materialize
Recent publicly announced expansion projects are mainly concentrated at Huasheng Lithium Energy, Ganyuan New Materials, and Yongtai Technology.
On July 10th, Huasheng Lithium Energy decided to adjust the implementation plan for its Hubei 60,000-ton annual VC project.
The original plan was to first build 30,000 tons, with the remaining 30,000 tons to be advanced based on orders and market conditions.
After the adjustment, the two phases are no longer separate; the 60,000-ton capacity will be built in one go, with a planned total investment of 1.6 billion yuan from the company's own or self-raised funds.
Huasheng recently disclosed that it currently has a production capacity of 14,000 tons for electronic-grade VC and FEC combined, plus 6,500 tons for industrial-grade products.
The Hubei 60,000-ton project is still under construction; the adjustment accelerates the investment pace but will not immediately change market supply in July.
Ganyuan New Materials put a 30,000-ton ultra-high-purity VC production line into operation this April.
Public information shows the company previously had about 20,000 tons of VC capacity; after the 30,000-ton project, total capacity is approximately 50,000 tons.
Subsequently, there is a planned 70,000 tons to be released in stages, with the company expecting total capacity to reach 120,000 tons by the end of 2026.
Ganyuan also has a long-term 200,000-ton annual lithium battery material project filed in 2024, with a construction period from 2025 to 2028, to be advanced in three phases of 50,000, 50,000, and 100,000 tons.
In June, Yongtai Technology announced an 800 million yuan investment to build an annual 50,000-ton VC and supporting project in Inner Mongolia, planned to start construction in August 2026 and be completed by the end of 2027.
The company already has 10,000 tons of capacity in operation, with another 20,000 tons under construction.
If all projects are completed as planned, total VC capacity will reach 80,000 tons.
Price Gains Reflected in Profits
The recovery in VC prices and sales is improving the financial statements of producers, but the profits of different companies cannot be entirely attributed to VC.
Huasheng Lithium Energy reported consecutive losses in the first three quarters of 2025, achieving a net profit attributable to shareholders of 116 million yuan and an adjusted net profit of approximately 61.76 million yuan in the fourth quarter.
The company stated in its annual report that starting from the fourth quarter, market prices for its main products rose, with the recovery in VC and FEC prices and improved capacity utilization enhancing gross margins.
Attributable profit was also affected by non-operating factors such as investment income, making adjusted profit a better reflection of the recovery in core business operations.
Ganyuan reported revenues of 1.511 billion yuan and 1.711 billion yuan in 2024 and 2025, respectively, with losses of 216 million yuan and 243 million yuan in those years.
In the first quarter of 2026, the company achieved revenue of 965 million yuan and a net profit of 134 million yuan, turning a loss into a profit.
The restructuring plan disclosed by Rike Chemical has not yet provided a further breakdown of the specific contributions of VC price, sales volume, and other products to profits.
Yongtai Technology expects its net profit attributable to shareholders for the first half of 2026 to be between 265 million and 330 million yuan, a year-on-year increase of 350.68% to 461.22%.
The company attributes the growth to increased sales volume and prices year-on-year for core lithium battery materials such as lithium hexafluorophosphate, LiFSI, VC, and electrolyte, as well as the release of new VC capacity.
This reflects an improvement across the entire lithium battery materials sector, not just profits from the single VC product.
When spot prices rise rapidly, a company's actual profitability also depends on long-term agreement pricing methods, product purity, raw material costs, capacity utilization rates, and the proportion of spot sales.
Simply multiplying 175,000 yuan by nominal capacity cannot accurately calculate a company's profit.
Battery Firms Securing Supply
Both CATL and BYD have recently strengthened cooperation with VC producers, but using different approaches.
In June, CATL signed a VC cooperation agreement with a wholly-owned subsidiary of Yongtai Technology.
In addition to preparing sufficient VC for producing electrolyte supplied to CATL, Yongtai New Energy will also specially supply VC: 20,000 tons in 2027, 30,000 tons in 2028, and 40,000 tons in 2029, totaling 90,000 tons over three years with allowable fluctuations for each year.
The unit price, final quantities, and specifications in the agreement are still subject to actual orders, so the 90,000 tons cannot be directly regarded as confirmed sales revenue.
However, the annual procurement plan provides relatively clear customer demand for Yongtai's projects under construction and planned.
In May this year, BYD became a new shareholder in Hubei Huasheng Xianghe New Energy Materials Co., Ltd., holding a 15% stake.
Hubei Huasheng Xianghe is precisely the entity implementing Huasheng's 60,000-ton VC project.
CATL is also a direct shareholder in Ganyuan, currently holding an 11.25% stake; BYD holds a 3.42% stake in Ganyuan.
Both companies are also downstream customers of Ganyuan.
These orders and equity relationships indicate that leading battery companies are increasing their supply security for key additives.
To date, the confirmed basic situation is: VC spot prices have risen 27.27% in a month, with market inventory at low levels.
Leading producers have adjusted or announced new expansion plans, but the main projects of Huasheng and Yongtai have not yet formed supply, and Ganyuan's new capacity still requires observation of actual output.
Downstream battery firms are enhancing supply security through procurement agreements and equity cooperation.
Short-term prices will still depend on the operation of existing production lines, inventory levels, and peak-season procurement rhythms.
If new capacity continues to be delayed, spot prices may remain high, potentially pushing prices to 180,000–200,000 yuan per ton.
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