Chemical giants accelerate capacity layout

2025 has witnessed a new wave of capacity expansion among global chemical giants, as they race to capture opportunities in fast-growing segments like new energy, electronics, and sustainable materials. BASF, for instance, has earmarked $2.5 billion for a state-of-the-art lithium battery material complex in North America—this facility, set to start production in 2027, will have an annual capacity of 150,000 tons of cathode materials, directly supplying major EV manufacturers in the U.S. and Canada. Dow Chemical is expanding its Asia-Pacific electronic chemicals base in Singapore by 40%, adding production lines for ultra-pure photoresist and semiconductor-grade solvents to cater to the region’s booming chip manufacturing industry.

Domestically, Sinopec has launched a 100,000-ton/year biodegradable polyester (PBAT) project in southern China, targeting the packaging and agricultural film markets, while PetroChina is investing in a 50,000-ton/year high-purity polyimide plant to support the aerospace and flexible display sectors. These moves are not just about scaling output: giants are also integrating upstream raw material resources (e.g., BASF securing long-term lithium supply contracts) and downstream application R&D (e.g., Dow collaborating with chipmakers on custom solvent formulations) to build end-to-end competitive barriers amid intensifying global industrial competition.