One way or another – Part 2: Energy transition in transportation will drive chemicals

I recently spoke at the Adhesive and Sealant Council's 2024 Annual Convention and EXPO in Louisville, Kentucky, where much attention was placed on the value proposition of adhesives and sealants in the realm of energy transition. Discussions revolved around bio-based and low-carbon products, as well as the applications of adhesives and sealants in emerging sectors such as battery-electric vehicles (BEVs) and solar panels, which were central to several sessions. These new applications are expected to fuel demand for adhesives and sealants in the near future.

In a previous blog, ADI discussed how, despite the slowdown, EVs will continue to increase their share of new vehicles sold through 2030. While adhesives and sealants are optimal for adhering mechanical parts together, they also offer several other advantages including lightweighting, safety, durability, and shock absorption. As shown in exhibit 1, a typical BEV uses 30% to 43% more adhesives and sealants than an internal combustion engine (ICE) vehicle. The majority of this incremental demand for adhesives and sealants arise from battery cells, modules, and packs, as well as the battery management system. The greater use of adhesives used in a BEV coupled with the anticipated growth in EV sales will drive adhesive and sealant demand in the long run.

Exhibit 1. Representative change in volume of adhesives in an ICE vehicle vs. a BEV.

By Panuswee Dwivedi

ADI Chemical Market Resources is a prestigious, boutique consulting firm specializing in chemicals, petrochemicals, polymers, and plastics since 1990. We bring deep, first-rate expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.

We also host the ADI Forum, one of Houston's distinguished industry conferences, to bring c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum, which is chaired by Uday Turaga, Founder & CEO, ADI Analytics, at www.adi-forum.com.

Our former industry-leading conference, FlexPO+ is now a part of the ADI Forum, one of Houston's distinguished industry conferences, bringing c-suite executives from across the value chains in oil & gas, energy transition, and chemicals together for meaningful, strategic dialogue.

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