What is driving the rapid capacity expansion in China's methyl ethyl carbonate market?

What is driving the rapid capacity expansion in China's methyl ethyl carbonate market?
China's EMC market is undergoing aggressive capacity expansion driven by lithium battery electrolyte demand. Domestic capacity reached 488,000 t/y, with Hualu Hengsheng leading at 300,000 t/y (61.5% share), followed by Shida Shenghua and Haike Xinyuan. The 2021 demand surge of 94.7% year-on-year to 139,500 tonnes reflected the EV boom. However, multiple new projects are slated for completion by 2023-2025, including Shida Shenghua's 100,000 t/y plant and Hualu Hengsheng's 300,000 t/y facility. This wave of investment raises concerns about oversupply. Producers with integrated DMC-EMC capacity and scale advantages will likely dominate cost competition, while smaller players below 10,000 t/y face increasing pressure.