Recent developments
U.S. capacity moves
In the U.S., Eli Lilly committed $6 billion to a new manufacturing facility in Huntsville, Alabama, to localize API production for small-molecule and peptide drugs, citing resilient supply as a goal. Materials reliability for electrification was also addressed as Trinseo introduced a Fourth-Generation SBR Binder Platform with production in Asia-Pacific, Europe, and North America. Operational risk remained evident after an unexpected outage at its Polyurethanes facility in Rotterdam temporarily reduced Huntsman’s MDI output, underscoring the need for redundancy.
Battery supply security
Europe advanced regional sourcing of critical minerals as the EIB committed €250 million to Vulcan Energy's Phase One Lionheart Project to build an integrated geothermal-lithium supply chain. Construction also began on a combined geothermal and lithium extraction plant in Landau, Germany, targeting local lithium hydroxide and district heat. Upstream battery safety components progressed through an Arkema–Semcorp MoU to collaborate on advanced battery separator technologies for EV and storage markets.
Energy backbone resilience
To mitigate grid constraints and sustain CO₂ management, Shell and Linde launched an energy hub at their Pernis site in the port of Rotterdam to share power and support Porthos compression. Hydrogen import readiness moved forward as Uniper and thyssenkrupp Uhde signed a framework agreement to construct commercial ammonia cracking plants tied to the Wilhelmshaven terminal. Feedstock diversification continued via Eni’s long-term LNG sale agreement with Turkish company BOTAŞ beginning 2028.
Portfolios realigned
Selective exits and consolidations aimed to stabilize value chains: CABB agreed to sell its US-based production site, Jayhawk Fine Chemicals Corporation, to Anupam Rasayan India Ltd, while Asahi Kasei will discontinue hexamethylene diamine (HMD) production by April 2027 without affecting PA66 resin or HDI. UPM and Sappi plan to form a graphic paper joint venture to optimize assets and secure customer supply amid structural decline. Separately, thyssenkrupp indicated Materials Services is shifting towards a supply chain service model with North American investments.
Regional capacity and logistics
Downstream and fertilizer availability in Africa may improve as Dangote partnered with Honeywell to expand its petroleum refinery's capacity to 1.4 million barrels per day and scale polypropylene and urea output. In Asia, Braskem and Katoen Natie launched a warehouse project in Singapore to shorten routes for bio-based PE and EVA across Southeast Asia. Component availability for electrified equipment was further supported by Clariant’s investments in its Daya Bay production sites in China to ensure reliable supply of halogen-free flame retardants.