Silicone: A rising star in materials driven by new energy

1.The new energy wave has stimulated demand growth
With the rapid development of the global new energy industry, silicone materials have entered a period of explosive demand. In the photovoltaic field, silicone, as a key material such as encapsulation adhesive, has seen explosive growth in demand along with the continuous and rapid increase in photovoltaic installed capacity. In terms of new energy vehicles, each new energy vehicle uses an average of about 3,000 to 5 kilograms of silicone materials. The significant growth in global new energy vehicle sales has kept the annual growth rate of silicone demand stable at over 20%.


2. Exports are improving and the market prospects are broad
In recent years, the export trend of domestic silicone has been good. Data shows that the compound annual growth rate of silicone exports is as high as over 20%. In emerging overseas markets such as Southeast Asia and the Middle East, with the development of infrastructure construction and manufacturing, the demand for silicone materials is growing rapidly, opening up a vast overseas market for domestic silicone enterprises.

3. Technological innovation to break through application challenges
Silicone enterprises are constantly increasing their investment in research and development to overcome technical difficulties. For instance, in response to the sealing challenge of high-voltage connectors in new energy vehicles, relevant enterprises have developed liquid silicone rubber products with self-lubricating surfaces and long-lasting resistance to compression deformation. These products can ensure sealing performance under high-temperature conditions, providing support for the safe operation of new energy vehicles.

4. With improved supply and demand, the industry is expected to heat up
In the past few years, the silicone industry has faced price pressure due to capacity expansion. However, nowadays, the new capacity added on the supply side is limited, while the demand side is constantly growing driven by new energy and other fields. Coupled with the favorable export situation, the supply and demand pattern of the silicone industry is gradually improving and is expected to usher in a new round of heating up. The signal of the bottom reversal of the cycle has already emerged.