US Huntsman suspends EV battery materials project because of Chinese imports

HOUSTON (ICIS)–Huntsman is suspending a project that would produce ultra-pure ethylene carbonate (UPEC) used in the batteries of electric vehicles because of aggressive imports from China, which has caused pricing to fall by 75%, the US-based producer said on Tuesday.

“The current level of pricing will not generate the returns we would expect, and we took the difficult decision to suspend the project,” the company said in prepared remarks about its Q3 earnings.

Once Huntsman sees signs that pricing for UPEC will improve, it can complete the project within 12 months.

Huntsman is the only producer of ultra-pure ethylene carbonate in North America. The company had planned to raise UPEC capacity to up to 20,000 tonnes/year at its plant in Conroe, Texas. The project would have been completed by the end of this year.

HUNTSMAN PROCEEDS WITH OTHER PROJECTS
Huntsman is proceeding with two other expansion projects.

One will increase capacity of spray foam catalysts. The other will increase capacity for specialty amines that are used to make cleaning solutions for computer chips.

The specialty amines will replace other substances that are more harmful to the environment.

Huntsman expects to complete both projects in the first half of 2024.

Thumbnail shows an electric vehicle lot. Image by Shutterstock.

(recast: adds missing word “project” to headline)