The electrolyte additive market is currently experiencing a robust recovery, with prices for vinylene carbonate (VC) and fluoroethylene carbonate (FEC) climbing in unison, signaling the dawn of a new boom cycle. On November 18, leaders from several listed companies within the industry reported that the swift surge in demand for energy storage batteries and power batteries, coupled with the influence of macroeconomic policies and shifts in industry supply and demand, has led leading firms to operate at near-full capacity. Recently, Shandong Genyuan, China's premier electrolyte additive manufacturer, suspended production for equipment maintenance, exacerbating the short-term VC supply shortage. On November 12, the VC price quote surged to RMB 77,500 per ton, marking a 63% hike from September 1. Previously, VC prices had hovered around RMB 50,000 per ton for nearly two years. This price spike is primarily attributed to the explosive growth in energy storage demand, which has fueled a surge in lithium iron phosphate battery production. Meanwhile, the industry has witnessed no new capacity additions in the past three years. Moreover, small and medium-sized manufacturers encounter hurdles in resuming production due to technical and environmental constraints, further compounded by production halts and maintenance at leading firms. According to research and statistics from the GGII Energy Storage Research Institute, China's energy storage market is projected to achieve a year-on-year shipment growth rate exceeding 50% by 2025, with the market size surpassing 500GWh. The sustained growth in downstream demand for power batteries, energy storage batteries, and other applications will propel long-term demand for upstream electrolyte additives VC and FEC. Amidst the backdrop of escalating prices and tight supply, leading companies are expanding production by capitalizing on their capacity and technological edge. Fuxiang Pharmaceutical has established a substantial production capacity of 8,000 tons of VC and 3,700 tons of FEC annually. In 2024, the shipment volume of lithium battery electrolyte additive products reached 6,525 tons, reflecting a 28% year-on-year increase. The company aims to boost VC production capacity to 10,000 tons per year through technological upgrades, with renovations slated for completion in the second quarter of 2026. Subsequently, contingent on market demand and industry capacity releases, the company plans to elevate VC and FEC production capacities to 20,000 tons per year and 5,000 tons per year, respectively. On November 17, the trial production plan for the 5,000-ton lithium battery additive project of Inner Mongolia Yongtai Chemical Co., Ltd., a wholly-owned subsidiary of Yongtai Technology, received expert approval and is now poised for trial production. The company's VC production capacity for electrolyte additives will reach 10,000 tons per year.