VC Price Soars 11% in Single Day to 200,000 RMB/ton on Supply-Demand Imbalance

Vinylene Carbonate (VC) Price Hits 200,000 RMB/ton, Marking First Time in Over Four Years

According to Baichuan Yingfu data, on July 23, the average price of vinylene carbonate (VC), a key lithium battery electrolyte additive, reached 200,000 RMB/ton, a single-day increase of 20,000 RMB/ton (11.11%). This surge represents a weekly gain of over 21% and the first time prices have hit this level since 2022.

Multiple factors are driving this price explosion:

• Demand Surge: New national safety standards for power batteries, effective July 1, require higher VC loading ratios. This, combined with booming energy storage market demand, has significantly increased consumption.
• Constrained Supply: Long-term low profitability had discouraged capacity expansion. Current inventory levels are critically low. Additionally, as a hazardous fine chemical, new VC production capacity faces strict environmental and safety approvals, with construction to stable production typically taking 1.5-2 years, and further time for capacity ramp-up.
• Forward Procurement: Major battery manufacturers like CATL and BYD have secured substantial VC supplies through long-term agreements and equity investments, tightening spot market availability.

This means for B2B buyers in the battery supply chain, immediate cost pressures on electrolyte formulations are inevitable. The current tight supply situation is expected to persist through Q4 2026. A CSC report estimates effective VC supply at only 115,000 tons against 192,000 tons of nominal capacity by end-2026, with most new capacity coming online only in Q4. Given the inelastic supply, analysts suggest further price increases are possible, recalling that VC prices exceeded 500,000 RMB/ton during the 2021 shortage.

VC producers, especially integrated ones with raw material self-sufficiency, are set to benefit significantly. Production costs for leaders are controlled at 25,000-30,000 RMB/ton, implying a gross profit of over 170,000 RMB/ton at current prices. However, for downstream buyers, securing stable supply sources and managing costs will be critical in the coming quarters.

Supplier Solution Note

The sharp rise in VC prices signals a tightening supply chain for critical battery materials, which can impact battery production costs and availability. For B2B clients, especially those in niche markets like UAVs, this underscores the importance of securing stable, flexible supply chains for custom battery solutions. We offer customized battery solutions with rapid response and optimized design, helping clients navigate market volatility and achieve cost-effectiveness for small-batch needs, supported by data tools for efficient battery selection.