Electric vehicles will play an important role in reducing emissions in the transportation sector, and Huntsman is at the forefront of expanding this technology.
Electric cars rely on Lithium-ion (Li-on) batteries, which contain electrolytes formulated with carbonate solvents such as Huntsman Performance Products’ ULTRAPURE™ ethylene carbonate. The solvent facilitates the transport of Li+ ions within the battery and improves the lifetime of the battery by forming a protective layer on the electrodes.
While electric vehicles currently make up only 2% of the automotive market, they are growing at 30% year over year. A study cited in Forbes predicts that electric vehicle will hit 10% of global passenger vehicle sales by 2025, rising to 28% in 2030 and 58% percent in 20401.
Huntsman is well positioned to grow with the electric vehicle industry. We are the only US producer and the largest supplier of ethylene and propylene carbonates used in Li-ion batteries in North America. The technology for battery construction has matured, and the reduction in unit costs has enabled direct competition with combustion engines in the very near future. As the markets for electric vehicles reach critical mass, and electric vehicle production increases in the United States, Huntsman will work in conjunction with partners in the battery supply chain to enable the rapid commercialization and growth of this exciting new technology.
We are expanding our plant in Conroe, Texas, to produce high-purity ethylene carbonate that Li-ion batteries require. The plant is expected to be in operation the beginning of 2023 to meet the growing demand, especially in the United States, where electric vehicle production is expected to reach 6.9 million units by 2025, a fivefold increase from today2.