FLUORSPAR MARKET ANALYSIS

Market Challenges And Opportunities

Market Drivers:

Increasing demand for fluorspar from fluorspar extracted chemicals: Increasing demand for fluorspar from fluorspar-extracted chemicals is driving growth of the fluorspar market. For instance, in 2021, some of the other minor applications of fluorspar used in fluorocarbon-derived products are manufacturing of welding road, aluminum, and steel. Furthermore, in the past, fluorocarbon-based chemicals were used in the production of chlorofluorocarbon (CFC).

Growing demand from oil and gas industry: Growing demand from the oil and gas industry is again expected to drive growth of the market. In the oil and gas industry, HCL (Hindustan Computers Limited) is commonly used in the stimulation of oil and gas wells, particularly in carbonate formations. With increasing demand in countries like China and India, oil and gas companies are planning on expanding their manufacturing activities, resulting in increased consumption of hydrochloric acid, which in turn boosts the consumption of fluorspar.

Market Restraints:

Strict environmental regulation: Environmental concerns over the extraction of chemicals from fluorspar are expected to hinder market growth. For instance, in 2020, huge amounts of rock overburden is lifted from the soil, processed, and eventually disposed of in mining. Mining has a substantial local impact on landscapes, particularly when open-pit mining is used. Fluorspar mining, like practically any other mining activity, has an impact on the local ecosystem and terrain.

Market Opportunities:

Li-ion battery demand is growing: Increasing demand for li-ion batteries is expected to provide lucrative growth opportunities. Fluorspar is used to manufacture fluorinated polymers such as PTFE, PVDF, and others. Polyvinylidene fluoride (PVDF) is a widely used fluropolymer as a binder resin for electroactive materials in Li-ion batteries. It is also used for safety purposes in the form of separator coatings. PVDF’s high electrochemical stability and its capability to be easily solubilized in common solvents and solution cast on industrial production lines are the key reasons for its preference as a binder resin.

Strategic alliances are becoming more popular: The growing adoption of strategic alliances for increasing the production of batteries is again expected to offer bright market opportunities. For instance, in September 2021, CATL Contemporary Amperex Technology Co. Limited a Chinese battery manufacturer and technology company manufacturing of lithium-ion batteries for electric vehicles and energy storage systems, as well as battery management systems, signed an agreement with the city government of Yichun in the Chinese province of Jiangxi to build a new production facility for lithium-ion batteries and a production plant for battery materials such as lithium carbonate. The total investment is expected to be around US$ 2 billion.