Diethyl Carbonate Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Sales Channel (Direct, Indirect), By End Use (Lithium Battery Electrolytes, Resin Production, Pharmaceutical, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 596.61 Million
CAGR (2026-2031)	3.33%
Fastest Growing Segment	Direct
Largest Market	Asia Pacific
Market Size (2031)	USD 726.19 Million

Market Overview

The Global Diethyl Carbonate Market will grow from USD 596.61 Million in 2025 to USD 726.19 Million by 2031 at a 3.33% CAGR. Diethyl Carbonate is a specialized organic compound acting as a high-purity solvent and a critical electrolyte component in lithium-ion batteries. The market is fundamentally propelled by the accelerating global adoption of electric mobility and the subsequent demand for energy storage solutions, alongside its increasing utility as a low-toxicity solvent in pharmaceutical synthesis. These core drivers represent a permanent structural shift towards electrification rather than temporary market preferences. According to the China Association of Automobile Manufacturers, in 2024, new energy vehicle production and sales exceeded 12 million units, illustrating the immense industrial scale of the battery sector that directly underpins the consumption of this chemical.

Despite this robust growth trajectory, the market faces a significant impediment regarding the volatility of raw material prices, particularly for feedstocks like ethanol and carbon monoxide. This pricing instability often disrupts production margins and complicates long-term supply agreements for manufacturers. Furthermore, the rigorous safety infrastructure required to handle this flammable compound imposes elevated operational costs that can limit facility expansion in cost-sensitive regions and creates a barrier for potential market entrants.

Key Market Drivers

The rapid expansion of the global electric vehicle manufacturing sector acts as the primary accelerator for the Diethyl Carbonate market, fundamentally reshaping demand dynamics for high-purity electrolyte solvents. As automakers aggressively transition toward electrification to meet emission targets, the consumption of lithium-ion batteries has surged, necessitating vast quantities of organic carbonate solvents like diethyl carbonate to ensure optimal ion transport and battery stability. This automotive-driven volume growth is creating a sustained dependency on the chemical supply chain, compelling suppliers to scale operations to support mass production. According to the International Energy Agency, in May 2024, global electric car sales were projected to reach approximately 17 million units in 2024, reflecting the massive scale of vehicular electrification that directly correlates with solvent requirements.

Concurrently, the rising deployment of grid-scale renewable energy storage systems is establishing a second critical revenue stream, diversifying consumption beyond the automotive sector. As power grids increasingly integrate intermittent renewable sources, the installation of large-scale lithium-ion battery energy storage systems (BESS) has accelerated to manage load balancing, further amplifying the need for electrolyte-grade solvents. According to the Ministry of Industry and Information Technology of China, in February 2025, the national production of lithium-ion batteries specifically for energy storage reached 260 GWh in 2024, underscoring the explosive growth in this segment. To accommodate such escalating aggregate demand, major producers are aggressively industrializing supply chains in key regions. For instance, according to Capchem Technology, in May 2024, the company announced a plan to invest USD 350 million to construct a new facility in Louisiana with an annual production capacity of 200,000 tons of carbonate ester solvents.

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Key Market Challenges

The volatility of raw material prices, particularly for essential feedstocks such as ethanol, stands as a critical barrier impeding the growth of the Global Diethyl Carbonate Market. Because Diethyl Carbonate synthesis relies heavily on industrial-grade ethanol, the sector is vulnerable to price swings driven by the biofuel and agricultural industries. When feedstock availability tightens due to competing demands from the energy sector, chemical manufacturers experience unpredictable surges in input costs. This financial instability erodes production margins and prevents manufacturers from securing the long-term, fixed-price contracts that lithium-ion battery producers typically mandate, thereby stalling large-scale supply chain integration.

This supply insecurity creates a high-risk operational environment that discourages facility expansion. For instance, according to the Indian Sugar and Bio-Energy Manufacturers Association, in October 2025, the sector faced a significant feedstock squeeze where only 2,890 million liters of sugar-based ethanol were allocated for the 2025-26 supply year, meeting just 28% of the total requirement. Such acute deficits in raw material availability force Diethyl Carbonate producers to absorb higher costs or limit output, directly hampering their ability to meet the rising demand from the pharmaceutical and battery industries.

Key Market Trends

The market is currently witnessing a pivotal shift towards the Emergence of Direct Carbon Dioxide Utilization Technologies, driven by the industry's urgency to decouple from fossil-derived feedstocks and close the carbon loop. Manufacturers are increasingly moving beyond traditional condensation reactions by adopting catalytic synthesis routes that directly combine captured carbon dioxide with ethanol, effectively mitigating the thermodynamic limitations that previously hampered this sustainable pathway. According to the Royal Society of Chemistry, January 2025, in the 'Breaking the equilibrium limit' article, researchers successfully demonstrated a novel catalytic process achieving Diethyl Carbonate yields exceeding 50% directly from CO2, a breakthrough that significantly enhances the commercial viability of using captured carbon as a primary feedstock.

Concurrently, there is an accelerated Transition to Phosgene-Free Manufacturing Processes, as regulatory frameworks and strict safety protocols disincentivize the use of toxic phosgene gas in favor of cleaner oxidative carbonylation techniques. This structural evolution is characterized by heavy capital deployment into proprietary gas-phase nitrite technologies, which offer superior product purity and a substantially reduced environmental footprint compared to legacy synthesis methods. Validating this industrial migration, according to UBE Corporation, February 2025, the company initiated the construction of a USD 500 million facility in Louisiana utilizing its proprietary nitrite process, specifically designed to eliminate hazardous by-products and align with stringent global safety standards.

Segmental Insights

In the Global Diethyl Carbonate Market, the Direct sales channel has emerged as the fastest-growing segment. This expansion is primarily driven by the escalating demand for high-purity grades essential for lithium-ion battery electrolytes and pharmaceutical synthesis. Manufacturers in these critical sectors increasingly prioritize direct procurement to ensure rigorous quality control, supply chain transparency, and adherence to precise technical specifications. By eliminating intermediaries, buyers can better secure consistent product availability and foster the technical collaboration necessary to meet the stringent purity standards mandated by modern energy and medical regulations.

Regional Insights

Asia Pacific dominates the Global Diethyl Carbonate Market, primarily due to its established role as the central hub for lithium-ion battery production. The region experiences immense demand from the electric vehicle and consumer electronics sectors in China, Japan, and South Korea, where diethyl carbonate serves as a critical electrolyte solvent. Furthermore, the thriving pharmaceutical and agrochemical manufacturing industries in India and China rely heavily on this compound as a versatile intermediate. This strong industrial foundation and the local availability of raw materials sustain the region’s dominance over global consumption.

Recent Developments

• In December 2025, subsidiaries of a global chemical group entered into a definitive agreement to transfer their lithium-ion battery electrolyte manufacturing assets in the United States and the United Kingdom to a specialized battery materials firm. The transaction involves facilities that produce electrolytes containing various carbonate solvents, including diethyl carbonate, for the automotive and industrial sectors. This divestment aligns with the group's strategy to optimize its business portfolio and focus on strategic collaborations while ensuring a continued supply of high-performance electrolyte solutions to its customers. The transfer is anticipated to be completed by March 2026, subject to customary regulatory approvals.
• In February 2025, the U.S. subsidiary of a prominent Japanese chemical corporation held a groundbreaking ceremony for a new manufacturing plant in Louisiana, USA. The facility will produce dimethyl carbonate and ethyl methyl carbonate, which are key organic solvents used alongside diethyl carbonate in lithium-ion battery electrolytes. This project, utilizing a proprietary gas-phase nitrite process, is expected to strengthen the domestic supply of critical battery materials and reduce reliance on imports. The plant is scheduled to begin operations in late 2026, positioning the company to better serve the growing needs of the electric vehicle and semiconductor industries in the region.
• In December 2024, a major petrochemical company commenced commercial operations at its new carbonates plant in Jiangsu Province, China. The facility utilizes licensed technology to produce high-purity carbonate solvents using carbon dioxide as a primary feedstock. These solvents are essential components for lithium-ion battery electrolytes, catering to the rapidly expanding electric vehicle industry. The successful startup of this plant represents a significant development in the sustainable production of battery materials, as the process captures and utilizes carbon dioxide, thereby reducing the overall carbon footprint of the chemical manufacturing value chain.
• In May 2024, a leading battery chemicals manufacturer announced plans to invest USD 350 million to construct a new production facility in Louisiana, USA. The plant is designed to have an annual capacity of 200,000 tons of carbonate ester solvents and 100,000 tons of lithium-ion battery electrolyte materials. This strategic expansion aims to meet the surging demand for battery components in the North American market and localize the supply chain. The facility will utilize advanced manufacturing processes to produce high-purity solvents, which are critical for the performance of electrolytes in electric vehicle batteries and energy storage systems.

Key Market Players

• Shida Shenghua Chemical Group Co.,ltd
• Dongying Haike Xinyuan Chemical Co., Ltd.
• Shandong Haike Chemical Group Co. LTD
• Liaoning Ganglong Chemical Co., Ltd.
• Fushun Dongke Fine Chemical Co., Ltd.
• Shandong Feiyang Technology Group Co., Ltd.
• Tongling Jintai Chemical Industrial Co., Ltd.
• Liaoyang Best Chemical Co., Ltd.
• Shaanxi Beiyuan Chemical Industry Group Co., Ltd
• Chongqing ChangFeng Chemical Co.,Ltd.

By Sales Channel	By End Use	By Region
Direct Indirect	Lithium Battery Electrolytes Resin Production Pharmaceutical Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Diethyl Carbonate Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Diethyl Carbonate Market, By Sales Channel:

• Direct
• Indirect

• Diethyl Carbonate Market, By End Use:

• Lithium Battery Electrolytes
• Resin Production
• Pharmaceutical
• Others

• Diethyl Carbonate Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE