Do‑Fluoride New Materials Co Ltd – Market Dynamics Amidst a Resurgent Battery‑Chemistry Boom
Do‑Fluoride New Materials Co Ltd (SZ002407), a Shenzhen‑listed specialty‑chemicals producer headquartered in Jiaozuo, China, has recently found itself in the spotlight as the broader battery‑materials sector undergoes a sharp upswing. While the company’s core portfolio—cryolite, aluminum fluoride, anhydrous hydrogen fluoride, industrial hydrofluoric acid, ammonium bifluoride, and potassium fluoride—remains firmly rooted in conventional inorganic fluoride production, its stock price has been influenced by several contemporaneous developments in the lithium‑ion ecosystem.
1. Rising Demand for Electrolytes and the “Long‑Term Agreement” Wave
The Chinese market is experiencing an unprecedented surge in demand for electrolyte solutions, the liquid medium that enables lithium‑ion batteries to conduct ions between electrodes. According to a recent analysis published by Shanghai Youse Net, the average price of electrolyte for lithium‑iron‑phosphate (LFP) batteries had climbed to ¥35,300 per tonne on 10 December 2025, effectively doubling the July low. This price escalation reflects the tight supply of the key raw material lithium hexafluorophosphate, whose price has also more than doubled to ¥165,000 per tonne within the same period.
Industry observers note that this upward price trend is largely driven by “long‑term supply agreements” (LTA) between battery manufacturers and electrolyte suppliers. In the weeks leading up to 11 December, a number of high‑profile battery producers—including CATL (宁德时代) and Tianshi Co. (天际股份)—announced sizable orders for electrolytes, with cumulative volumes approaching 160 million tonnes in the case of the LTA signed by Tianci Materials (天赐材料) with Zhongxinnaviation and Guoxuan High‑Tech. The LTA strategy allows manufacturers to lock in raw‑material prices and ensure a stable supply chain, thereby reinforcing demand for electrolytes across the sector.
2. Shareholder Sell‑offs: Rational Real‑Estate or Sentiment Shift?
Amid this backdrop of heightened demand and escalating prices, Do‑Fluoride has joined a cohort of electrolyte‑focused companies that have announced shareholder‑initiated sell‑offs. According to a report from Stock East Money, several major players—including Huasheng Lithium (华盛锂电), Tianji Co. (天际股份), Haike New Energy (海科新能), Tianci Materials (天赐材料), and Do‑Fluoride (多氟多)—have filed plans to divest minority stakes.
The disclosures, dated 11 December, state that the primary motivation for these sell‑offs is “funding requirements.” The scale of the sales remains modest, yet the concentration of divestments within a single industry sector has sparked speculation. Commentators such as Jin Peipei of Longzhong Information and Zhao Weiwei of Xinhua Research posit that the sell‑offs represent a rational “cash‑in” strategy as the sector has reached a cyclical peak. Others, including industry veteran Mo Ke of the Zhongli Research Institute, argue that the sell‑offs are a typical manifestation of a mature market cycle, rather than evidence of a looming downturn.
From an analyst’s perspective, it is essential to monitor whether this pattern of sell‑offs is accompanied by any deterioration in operational metrics—particularly earnings growth, gross margin stability, or inventory build‑ups—which could signal a more profound shift in industry fundamentals.
3. Do‑Fluoride’s Position in the Supply Chain
While Do‑Fluoride’s product mix does not directly include lithium‑ion electrolytes, its fluoride‑based chemicals are critical inputs for electrolyte synthesis and battery component manufacturing. The company’s production facilities in China, with a reported market capitalization of approximately 38.4 billion CNY and a closing price of 31.45 CNY as of 9 December 2025, are strategically positioned to supply the growing demand for high‑purity fluoride reagents.
In a recent company announcement dated 8 December, Do‑Fluoride disclosed that it had achieved “boron isotope domestication” and had begun production of 100 t/yr of boron‑isotope‑based new materials. The firm has secured a formal audit report from Ningfu New Energy Technology Co., reinforcing its compliance and quality credentials. While these developments are not directly linked to the lithium‑ion electrolyte market, they demonstrate the company’s capacity to expand its product line and potentially capture new market opportunities within the broader battery‑materials ecosystem.
4. Market Sentiment and Outlook
The battery‑materials segment of the Chinese market remains buoyant, with the Lithium‑Battery 50 ETF (159796) posting a 0.31 % gain during early trading on 11 December, accompanied by a net inflow of 20 million shares. Do‑Fluoride’s shares rose by 3.53 % during the same period, benefiting from the sector’s positive momentum.
Looking forward, analysts forecast that the 2026 supply‑demand structure for batteries will improve further, driven by the continued expansion of electric vehicle and storage market penetration. Higher prices for raw materials, combined with a gradual stabilization of manufacturing costs, are expected to sustain profitability across the supply chain.
Do‑Fluoride’s ability to navigate the current volatility—by leveraging its established fluoride chemistry expertise and exploring new product lines—will be a key determinant of its performance in the coming years. Investors monitoring the company should keep a close eye on any further corporate disclosures regarding product development, capacity expansions, and financial performance metrics, as these will provide clearer signals of how well the firm can capitalize on the growing demand for battery‑related materials.
