Market Demand for Electrolyte Additive PS Falls with Potential to Be Replaced

SHANGHAI, Jan 30 (SMM) - As a common additive in the electrolyte, 1,3-Propanesultone (PS) is widely used in LCO batteries and ternary batteries. Its main function is to improve the performance of electrolyte under high temperatures, inhibit gas swelling and reduce the internal resistance of the battery. In addition to being used in the electrolyte of lithium battery, PS is also manufactured in large quantities for electroplating.  

Generally, PS in the current market can be divided into three types, namely electronic-grade, industrial-grade and medical-grade. In order to ensure the quality, electronic-grade PS is usually used in electrolyte of the lithium battery.  

However, compared with other common additives such as VC, FEC, and DTD, the planned distribution of PS production capacity is not concentrated, and the capacity expansion lacks momentum in recent years. Basically, there are three main reasons for the falling demand for PS. 

First, PS is listed as CMR according to REACH, thus the batteries using PS as an additive and also the vehicles based on such batteries will be restricted when exported to Europe and the United States.

Secondly, the production of PS will take a heavy toll on the environment as plenty of waste salt and waste water are generated, which lifts the cost of pollution treatment.

Thirdly, the alternative products for PS are gaining obvious advantages. For example, the prices of one substitute ethylene sulfate (DTD) have fallen below 200,000 yuan/mt in 2022 with growing supply, and the prices are expected to narrow to 100,000 yuan/mt in 2023 with continuous release of capacity. In this scenario, the domestic manufacturers are inclined to replace PS with DTD.