Fluorine Industry Transformation Needs Multi-Stakeholder Cooperation

Fluorination represents one of the newest chemical material sectors and is often referred to as the "golden industry." Due to its exceptional properties such as chemical resistance, temperature resilience, aging resistance, low friction, and insulation, fluorinated products are extensively utilized across various fields like defense, chemistry, and machinery. These qualities make the fluorine chemical sector a rapidly growing and highly promising segment within the global chemical industry. The "Twelfth Five-Year Plan for China's Fluorine Chemical Industry Development" outlined ambitions to boost total production capacity of all fluorinated products to 4.5 million tons by 2015, aiming for 20% of these products to fall into the mid-to-high-end category, while achieving an industry-wide output value surpassing 150 billion RMB. Despite its rapid progress, China's fluorine chemical sector faces challenges. Currently, over thousands of fluorinated industrial enterprises operate within the country, forming a comprehensive fluorinated industrial chain that includes fluoroalkanes, fluoropolymers, inorganic fluorides, fine fluorine chemicals, and fluorinated materials processing. Production capacities for products such as aluminum fluoride, fluorinated aluminum, PTFE, HCFCs, HFCs, and fluoroelastomers rank among the highest globally. However, the sector suffers from outdated technologies, insufficient product innovation, and severe instances of low-level redundant construction and uncontrolled capacity expansion. This has led to excessive resource consumption, particularly of fluorite, severely hindering the industry's long-term sustainability. Additionally, most enterprises remain clustered at the upstream end of the supply chain, with a significant surplus of basic fluorine chemical goods, creating notable imbalances in both industrial and product structures. To meet the goals set out in the Twelfth Five-Year Plan, the fluorine chemical industry must prioritize transformation, optimization, and innovation. Structural adjustments are critical to drive industrial upgrades toward refinement, lightweighting, composite materials, energy efficiency, and eco-friendly circular economies. How can this transformation occur? First, industry associations should take a proactive role in facilitating collaboration, swiftly establishing fluorine chemical industry development guidelines and regulatory frameworks aligned with China's unique circumstances. Addressing current constraints such as industrial policies, environmental regulations, and international trade issues is essential. Second, obsolete products and processes causing inferior quality and environmental harm must be phased out immediately. Efforts should focus on enhancing scientific innovation, nurturing skilled talent, and implementing supportive policies to encourage high-end, specialized, and differentiated development. Third, parks should be strategically planned and constructed to optimize fluorite resource utilization while fostering economic and technological partnerships for balanced growth. Lastly, the industry should aim at cutting-edge technologies to develop eco-friendly alternatives such as new refrigerants, PTFE, PVDF, and other fluorinated fine chemicals, thereby extending the industry chain and enriching product offerings. Fuxin City in Liaoning Province, often regarded as the birthplace of China's fluorine chemical industry, has cultivated this sector for four decades. The city's "Fuxin Fluorine Industry Development Plan," leveraging regional, resource-based, and technological advantages, has clearly prioritized the development of key fluorinated products like fluoroalkanes and fluoropolymers, supported by fundamental chemical goods and advanced fine fluorine chemicals. The Fuxin Fluorine Chemical Industry Base, spanning 20 square kilometers, has seen progressive infrastructure development. Renowned domestic and international companies have established operations here, leading to the creation of sophisticated, differentiated, and high-end fluorine chemical products. Market-ready items such as environmentally friendly refrigerants, aluminum chloride, and other premium fluorinated goods are already available. Despite a recent slowdown in the domestic fluorine chemical industry, new entrants have thrived against the odds. By now, the industry's primary economic metrics have shown growth rates exceeding 100%. Fuxin is well-positioned to build a trillion-RMB fluorine capital hub. While this model may not apply universally, it certainly offers valuable insights and inspiration for other regions. The future of the fluorine chemical industry lies in embracing innovation, sustainability, and strategic partnerships. As the world continues to seek solutions for climate change and resource scarcity, China’s fluorine chemical industry stands poised to lead the way forward.