1. Global Status of Lithium Battery Separators
a) Lithium-Ion Battery Separator Manufacturing Processes: The preparation of base films for lithium-ion battery separators involves two primary processes: the wet process and the dry process. The wet process is based on the principle of thermally induced phase separation, where solvents are used to form micropores during the extraction stage. In contrast, the dry process relies solely on physical stretching to create pores, without the use of solvents, by rapidly stretching and cooling thick plastic sheets. Manufacturing wet process separators generally incurs higher costs than producing dry process separators of the same model and quality.
b) Market Share of Dry and Wet Process Separators: Over the past five years, wet process separators have dominated the global market, holding approximately 75% of the market share, while dry process separators account for about 25%. The production of dry process separators is primarily concentrated in China, with limited production in the United States and Japan. On the other hand, wet process separators are manufactured in several countries, including China, Japan, South Korea, the United States, Poland, and Hungary.
c) Preference for Wet Process Separators: Due to the distinct performance characteristics of wet and dry process separators, as well as the demand for high energy density and enhanced safety in lithium batteries, the usage of wet process separators significantly exceeds that of dry process separators.
2. Why European Battery Manufacturers Need More Wet Process Separators
a) Demand for High Energy Density Batteries: Currently, the main types of power batteries are lithium iron phosphate (LFP) and nickel-cobalt-manganese (NCM) ternary systems. European battery manufacturers primarily focus on producing high energy density NCM batteries, which require wet process separators to ensure higher safety and reliability.
b) Senior’s Strategic Choice: Senior has opted to use a mature, safe, and efficient process involving dichloromethane (DCM) solvents to produce wet process separators, aligning with the growing demand from European battery manufacturers for these separators.
3. Global DCM Supply Chain
a) Robust DCM Supply Channels in Europe: There is a strong supply chain for the safe and efficient DCM solvent across Europe, with established supply networks in the UK, Germany, France, and the Netherlands. Additionally, stable DCM supplies can be sourced from China, South Korea, and Japan in Asia, as well as from the United States and Brazil in the Americas.
b) Major Global Suppliers of Dichloromethane (DCM): Key global suppliers include DuPont (USA), AkzoNobel (Netherlands), Ineos (UK), AGC (Japan), Solvay (Belgium), Kem One (France), Ercros (Spain), Gujarat Alkalies (India), and Juhua Group (China), among others.
4. Future Plans and Separator in Europe
According to reports from relevant institutions, Europe’s battery production capacity is projected to exceed 1000 GWh by 2030, with a compound annual growth rate of over 20%. The new EU Battery Regulation also outlines specific requirements for increasing the proportion of localized supply chains. In line with these future production plans, the demand for wet process separators in Europe is expected to grow significantly and steadily.
Senior aims to support Europe’s green transition by providing advanced wet process separator technology from its plant in Eskilstuna, Sweden, contributing to the global effort to improve climate conditions and the environment.