(July 15, 2026) A domestic specialty silicone material company in Changzhou, Jiangsu Province, announced the completion and commissioning of a 10,000-ton intelligent continuous production line for low-VOC solvent-free epoxy silicone oil. Relying on independently developed micro-reaction distillation coupled synthesis technology, this production line overcomes industry pain points such as high energy consumption, high residue, and poor epoxy stability in traditional batch production, marking the full-process independent control of China's high-end epoxy silicone oil and accelerating import substitution in four major sectors: new energy batteries, 5G thermal gels, photovoltaic coatings, and environmentally friendly industrial coatings.
Transparent epoxy silicone oil finished product
According to the project technical manager, the new products launched this time cover three core series: end-end epoxy linear silicone oil, multi-arm star epoxy silicone oil, and fluorine-containing modified epoxy silicone oil. The products have a stable epoxy value range of 0.22–0.25 mmol/g, and metal impurity content ≤ 45 ppb, meeting the high-end electronic standards of leading international brands Shin-Etsu and Wacker. Compared to traditional processes, the new production line reduces unit energy consumption by 37%, organic exhaust emissions are nearly zero, finished product yield increases from 68.4% to 89.7%, and overall production costs are reduced by 21%, perfectly aligning with current low-carbon production policies in the chemical industry.
From the downstream demand side, epoxy silicone oil, with its epoxy active groups, can crosslink with amines and resins, and also possesses inorganic silicon resistance to high and low temperatures, low surface tension, and insulation and moisture resistance. In recent years, market demand has continued to surge. In 2026, the overall domestic epoxy silicone oil market size is expected to exceed 5.2 billion yuan, a year-on-year increase of 8.1%; Among them, new energy and electronics and electrical sectors accounted for over 60% of total consumption, leading all categories in growth rate: procurement demand for thermal interface materials for power battery packs increased by over 44% year-on-year, and the gap in high-purity epoxy silicone oil for AI servers and 5G base station thermal gels continued to widen; Demand for auxiliary supporting agents for photovoltaic release coatings and heavy-duty anti-corrosion coatings for wind power has steadily increased simultaneously.
Industry data shows that by 2025, the domestic market share of overseas brand epoxy silicone oil will fall from 31.5% in 2023 to 24.8%, clearly showing a trend of domestic substitution. With the launch of this 10,000-ton production line, the self-sufficiency rate of epoxy silicone oil for high-end electronic packaging and liquid cooling is expected to exceed 60% within the year, significantly reducing raw material procurement costs and supply chain risks for domestic lithium battery, semiconductor, and coating companies. The project has reached annual targeted supply agreements with CATL, Tongwei Co., and leading domestic coating companies. Customized low-volatility epoxy silicone oil will be mass-applied in next-generation power battery sealants and photovoltaic film coatings.
On the policy front, the 2026 revised "Guidance Catalogue for the First Batch of Application Demonstrations of Key New Materials" has included high-end epoxy-modified silicone oil in the priority category of interface materials for new energy batteries, with supporting local government subsidies increased by 18%, further incentivizing enterprises to increase investment in special silicone R&D. Currently, the domestic epoxy silicone oil industry has an R&D investment intensity of 4.7%, far higher than the organosilicon industry average of 3.2%. Continuous flow synthesis, solvent-free green modification, and fluorine-containing specialty modification have become mainstream technology iteration directions.
Industry experts analyze that the epoxy silicone oil sector has moved away from extensive price competition and is shifting toward specialization, customization, and green competition. Leading enterprises continue to widen the gap by leveraging integrated capacity, proprietary synthesis processes, and downstream binding advantages, while the Matthew effect in the industry continues to strengthen. With the launch of this domestic 10,000-ton green production line and the release of RCEP export dividends, the domestic epoxy silicone oil export market will further expand into new energy industry clusters in ASEAN, the Middle East, and Southeast Asia. Export volume for the entire year of 2026 is expected to exceed 45,000 tons, with the average export price of high-end products continuing to rise.
Next, the company plans to simultaneously build a supporting R&D pilot base, focusing on two cutting-edge products: ultra-high epoxy temperature-resistant silicone oil and medical-grade low-irritation epoxy-modified intermediates. It will target the blue ocean markets of aerospace seals, high-end medical dressings, and premium automotive interior coatings, continuously improving its domestic functional silicone product matrix.
