Downstream applications and competitive landscape of N-methylpyrrolidone (NMP)

1. Overview of Industry Development
At present, from the late 1990s to the beginning of this century, Nanjing Jinlong and our company have successively built 1000 ton GBL/NMP production facilities, and China has begun to independently produce NMP. After 2008, the domestic production capacity of NMP has accelerated, and many large NMP production enterprises have the conditions to have a production capacity of 10000 tons. With the continuous investment of R&D forces in the same industry, there has been a breakthrough in the requirements for NMP purity for different downstream products.
In recent years, the production and sales volume of major enterprises in the industry have grown rapidly, and competition has become increasingly fierce. The main enterprises in the industry include Changxin Chemical, Maiqi Chemical, Binzhou Yuneng Chemical Co., Ltd. (hereinafter referred to as "Yuneng Chemical"), etc. Overcapacity at the low-end and supply shortage at the high-end have become prominent issues in the development of the industry.
2. Downstream industry situation
NMP products are mainly used in new energy industries such as lithium-ion batteries and power batteries, as well as new material industries such as aramid, polyphenylene sulfide, and polyimide. With the rapid development of emerging industries in China towards pillar industries, downstream consumption of new energy and materials has increased sharply. In addition, the introduction of technology and self improvement in downstream industries have led to the rapid growth of downstream industrial chains to meet the needs of national economic and social development.
(1) Lithium ion battery industry
NMP, as one of the main raw materials in the manufacturing process of lithium-ion batteries, directly affects the quality of slurry coating and environmental protection requirements for lithium-ion batteries. According to industry research data analysis, although differences in models and specifications can lead to varying proportions of NMP in the value of lithium-ion batteries, overall, NMP accounts for about 3% -6% of the manufacturing cost of lithium-ion batteries. The market size and demand for NMP also increase with the growth of lithium-ion batteries, especially energy storage batteries and power batteries.
Lithium ion batteries have outstanding advantages such as high energy density, long cycle life, low self discharge rate, no memory effect, and green environmental protection, making them currently the ideal secondary battery. Lithium ion batteries are widely used in the field of portable electronic products, such as laptops, mobile phones, and digital cameras. With the development of the new energy industry, lithium-ion batteries have gradually become the main power batteries for electric tools, electric bicycles, and electric vehicles due to their unique high specific energy and high specific power characteristics. In addition, lithium-ion batteries also have important applications in the field of energy storage.
Japan, South Korea, and China are the main producers of lithium-ion batteries worldwide. Japan is one of the earliest countries to commercially use lithium-ion batteries. Prior to 2000, the majority of lithium-ion batteries worldwide were produced in Japan. After 2000, China and South Korea began to invest in the lithium-ion battery industry and gradually began mass production. The proportion of lithium-ion battery shipments in Japan gradually decreased, while the shipment volume of lithium-ion batteries in China and South Korea significantly increased. The global lithium-ion battery production capacity gradually formed a tripartite situation.
(2) Polymer materials industry
NMP is also an essential chemical solvent involved in chemical reactions and dilution during the manufacturing process of polymer materials such as aramid, polyphenylene sulfide, and polyimide, directly affecting the smooth completion of low-temperature condensation reactions and material product transportation. Poly (p-phenylene terephthalamide) (PPTA), also known as aramid, is a new type of high-tech synthetic fiber with excellent properties such as ultra-high strength, high modulus, high temperature resistance, acid and alkali resistance, and light weight. Its strength is 5-6 times that of steel wire, modulus is 2-3 times that of steel wire or glass fiber, toughness is 2 times that of steel wire, and weight is only about 1/5 of steel wire. It does not decompose or melt at a temperature of 560 degrees Celsius. It has good insulation and anti-aging performance, and has a long life cycle. The discovery of aramid is considered a very important historical process in the materials industry.
Aramid * * * was successfully developed and industrialized by DuPont in the 1960s in the United States. Nowadays, aramid abroad has matured in terms of research and development level and large-scale production industry. In the field of aramid fiber production, para aramid fiber is developing rapidly, with production capacity mainly concentrated in Japan, the United States, and Europe. Such as Kevlar fiber from DuPont in the United States, Technora fiber from Teijin Corporation in Japan, and Terlon fiber from Russia. The varieties of meta aramid fibers include Nomex, Conex, Fenelon fibers, etc. DuPont in the United States has world-class research and development, production standards, and market share in new products. They currently produce more than ten grades of Kevlar fiber, including Kevlar-49 and Kevlar-29, with dozens of specifications for each grade.
Aramid is a high-tech special fiber with fast development and excellent comprehensive performance among high-temperature resistant fibers in the world today. This fiber is soft and lightweight, with good insulation, acid and alkali resistance, and high temperature resistance. As an indispensable basic material in high-tech fields such as aerospace, national defense, and electronic communication, aramid demonstrates a country's technological strength in a sense. Previously, although only a few countries such as the United States, Japan, and Russia had mastered its industrialization technology, China's demand for aramid was completely dependent on imports. With the rapid development of the national economy in recent years, the domestic demand for aramid and its products has increased sharply at a rate of 30% per year. In recent years, the localization of aramid in China has also accelerated its development and industrialization process, with continuous breakthroughs and expansion in equipment scale, and narrowing the gap in product quality and variety with foreign enterprises.
3. Industry competition pattern
In terms of competitive landscape, as domestic manufacturers' process technology becomes increasingly mature and product quality improves, the advantages of foreign competitors such as BASF and Mitsubishi Chemical no longer exist, and they are gradually withdrawing from the domestic market. At present, the main competition in China is between direct manufacturers and recycling and purification manufacturers, as well as a small number of import and export traders. Recycling and purification manufacturers occupy dispersed customer groups and low-end markets, while direct manufacturers occupy the main customer groups and high-end markets. At present, the competition groups in China's N-methylpyrrolidone (NMP) industry can be roughly divided into two categories: * * * competition group refers to enterprises with strong competitiveness, such as BASF from Germany, Mitsubishi from Japan, AstraZeneca from the United States, and Mech Chemical. These enterprises are generally larger in market size, have long working experience, strong technological research and development capabilities, and have various advantages such as capital and channels, making them more competitive. The second competitive group is small and medium-sized N-methylpyrrolidone (NMP) enterprises, which have a large number and small scale, limited brand influence, average technology, and uneven product quality.