Main emerging areas for chemical industry companies

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These emerging areas not only bring new growth opportunities to the chemical industry companies but also enhance China's competitiveness in the global chemical market.

China's chemical industry companies is rapidly developing in several emerging areas, driven by policy support and technological innovation. These emerging fields are becoming key growth points for the industry's high-quality development. Here are the main emerging areas:

1. New Energy Materials
New energy materials are a significant growth engine for China's chemical industry companies, especially under the impetus of the "dual carbon" goals. Key sub-sectors include lithium battery materials, photovoltaic materials, and energy storage chemicals.
- Lithium Battery Materials: With the rapid development of new energy vehicles and energy storage markets, demand for lithium battery materials has surged. Chinese companies like Contemporary Amperex Technology Co. Limited (CATL) have made significant progress in high-nickel ternary materials and lithium iron phosphate cathode materials.
- Photovoltaic Materials: China's photovoltaic industry chain holds a dominant global position. Key auxiliary materials such as EVA films and silicon wafer配套chemicals are in continuous demand. Meanwhile, research and development of novel photovoltaic materials like perovskite solar cells are accelerating.
- Energy Storage Chemicals: The popularization of energy storage technologies has driven the market growth of flow battery electrolytes and lithium battery electrolyte additives.

2. Bio-based and Biodegradable Chemicals
Driven by the "dual carbon" goals and policies to combat plastic pollution, bio-based chemicals and biodegradable plastics have become key directions for industry transformation.
- Bio-based Materials: Through technologies such as gene editing and metabolic engineering, bio-based materials are gradually replacing traditional petrochemical raw materials to achieve efficient production and carbon neutrality goals. Domestic companies like Shanghai Kaisai Biochemical and Huaheng Biochemical are developing high-value chemicals using synthetic biology techniques.
- Biodegradable Plastics: Polylactic acid (PLA) and other biodegradable plastics are widely used in disposable packaging, agricultural films, and the catering industry, with rapidly increasing market demand.

3. Electronic Chemicals
Electronic chemicals are a key area for the high-end development of the chemical industry companies, covering high-end materials such as semiconductor photoresists, wet electronic chemicals, and OLED emissive materials.
- Semiconductor Photoresists: Amidst increasing international trade barriers, semiconductor photoresists have become a focal point for domestic substitution in China's chemical industry companies. The domestic market size for semiconductor photoresists in China is expected to reach 4.4 billion yuan by 2025.
- Wet Electronic Chemicals: Domestic companies are accelerating independent research and development in the field of semiconductor wet electronic chemicals, gradually narrowing the technological gap with international giants.
- OLED Emissive Materials: With the rapid iteration of display technologies and the expansion of the OLED and flexible display markets, the demand for electronic chemicals is increasing.

4. Green Chemistry and Sustainable Development
- Green Supply Chain Management: The international market's focus on supply chain carbon footprints is continuously rising. Chemical companies need to ensure that the entire life cycle of products, from raw materials to end products, complies with carbon emission standards.
- Green Branding: Consumer acceptance of green products is gradually increasing. Chemical companies can gain market premiums by creating low-carbon chemical brands.

5. Innovation Driven by New Technologies
- Biomimetic Nanofluidics: By mimicking ion transport mechanisms in biological organisms, high-performance ion transport materials are being developed for applications in energy storage and biomedicine.
- Electrochemical Nitrogen Cycling: Using electrochemical technology to achieve efficient nitrogen conversion, providing sustainable nitrogen fertilizer production solutions for agriculture and industry.

6. Digitalization and Intelligent Manufacturing
The chemical industry companies is introducing Industry 4.0 technologies to achieve digitalization and intelligent manufacturing throughout the production process.
- Smart Factories: China Petrochemical Corporation (Sinopec) has built several smart refineries and chemical plants. Digital technologies are used to improve production efficiency and safety, reduce energy consumption and costs.
- Supply Chain Optimization: Digital platforms are used to optimize supply chain processes, increasing the transparency and efficiency of the supply chain.

These emerging areas not only bring new growth opportunities to the chemical industry companies but also enhance China's competitiveness in the global chemical market.

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