The fluorine chemical industry is hailed as the "golden industry." Its industrial chain starts from fluorite mines deep in the earth's crust, journeys through a bottle of hydrofluoric acid in a "fantastic voyage," and finally reaches high-end fields such as chip manufacturing, new energy batteries, and aerospace. This industrial chain, spanning from resources to high technology, not only carries the underlying logic of modern industry but also reflects China's industrial transformation from a resource-rich nation to a technology powerhouse.
Origins – The "Industrial Vitamin" Buried Deep Underground
The story begins with fluorite (calcium fluoride, CaF₂), which has lain dormant for hundreds of millions of years. As the core carrier of global fluorine resources, fluorite is classified as a strategic mineral by many countries. China has fluorite reserves of approximately 67 million tons, accounting for 23.9% of the global total and ranking second in the world; its production accounts for 57%–77% of the global share, making it a true fluorite powerhouse.
Fluorite is not used directly. Based on its calcium fluoride content, it is graded into raw ore, lump ore, metallurgical-grade powder, and acid-grade fluorite powder (grade ≥ 97%). Among these, acid-grade powder is the sole entry point for the fluorine chemical industry – producing 1 ton of hydrofluoric acid requires approximately 2.3 tons of acid-grade fluorite powder.
Transformation – The Birth of Hydrofluoric Acid
When fluorite powder meets concentrated sulfuric acid in a reaction furnace, the "lifeblood" of the fluorine chemical industry chain – anhydrous hydrofluoric acid (AHF) – is born.
This chemical reaction appears simple (CaF₂ + H₂SO₄ → 2HF + CaSO₄), but is in fact fraught with danger: hydrogen fluoride is highly corrosive, and the production process requires strict controls. For this reason, hydrofluoric acid production capacity is highly concentrated – in 2024, China's hydrofluoric acid production capacity reached 3.843 million tons, accounting for 87% of the global total, with Inner Mongolia, Zhejiang, and Fujian together accounting for nearly 50%.
It is worth noting that hydrofluoric acid is divided into industrial grade and electronic grade. Industrial-grade products have a purity of only 3N (99.9%), while electronic-grade hydrofluoric acid used for chip manufacturing must reach 6N (99.9999%) or even higher purity, with impurity content controlled at the ppb (parts per billion) level.
Divergence – Three Destinies of a Bottle of Hydrofluoric Acid
Starting from hydrofluoric acid, this bottle of "industrial lifeblood" faces three distinctly different paths, corresponding to the three value tiers of the fluorine chemical industry:
Path One: Refrigerants – Policy-Driven Generational Transition
Approximately 50% of hydrofluoric acid flows into the refrigerant sector. However, this is not a stable track, but rather a "quota battleground" strictly controlled by international environmental agreements:
l First generation (CFCs): has been completely phased out
l Second generation (HCFCs, e.g., R22): China's quota will be reduced by 67% in 2025, with gradual phase-out
l Third generation (HFCs, e.g., R32, R125, R134a): Currently mainstream, but subject to the Kigali Amendment, with reductions starting in 2029
l Fourth generation (HFOs): Zero global warming potential (GWP), with technology monopolized by foreign companies such as Honeywell
In 2024, China's production quota for third-generation refrigerants was locked at 745,600 tons, with Juhua Group, Sanmei Chemical, and Sinochem Lantian together holding 85% of the market share, forming a "tripod" pattern. With further reductions in second-generation refrigerants in 2025, refrigerant prices continue to rise, with R32 prices increasing 64.47% year-on-year.
Path Two: Fluoropolymers – The "Plastic Gold" of the Materials World
The second path leads to the field of polymer materials. Products such as polytetrafluoroethylene (PTFE), polyvinylidene fluoride (PVDF), and perfluoroalkoxy resin (PFA) are known as "plastic gold" due to their high temperature resistance, corrosion resistance, and insulating properties.
l PTFE: Dongyue Group has the world's largest production capacity (approximately 60,000 tons/year), widely used in 5G cables and semiconductor insulation layers
l PVDF: A core material for lithium battery binders, with lithium battery-grade products commanding a 120% premium over ordinary grades; Juhua Group, Dongyue Group, and others have established complete production capacity
l PEEK: From hydrofluoric acid to PEEK, spanning the value spectrum, and applied in fields such as robotics and medical implants
Path Three: Fluorinated Fine Chemicals – The Peak of the Industrial Chain's Value
Although the smallest in volume, the third path represents the pinnacle of value in the fluorine chemical industry. Fluorinated fine chemicals (including fluorinated pharmaceutical intermediates, pesticide intermediates, electronic specialty gases, lithium battery additives, etc.) occupy the highest value-added position in the industrial chain.
l Lithium hexafluorophosphate (LiPF₆): The core solute in electrolytes, with Do-Fluoride New Materials leading globally in production capacity (55,000 tons/year)
l Lithium bis(fluorosulfonyl)imide (LiFSI): A new type of lithium salt with better performance but higher cost, with leading companies accelerating capacity expansion
l Electronic-grade fluorides: Used for chip cleaning and etching, with the domestic substitution rate increasing from 30% in 2018 to 65% in 2024
Endpoints – From New Energy Vehicles to Nanometer Chips
The final destination of a bottle of hydrofluoric acid's voyage is the cutting edge of modern technology.
Semiconductor Manufacturing
In semiconductor manufacturing, electronic-grade hydrofluoric acid plays a core role in wafer cleaning and etching. In 7nm processes, hydrofluoric acid with a purity ≥ 99.9999% is required to ensure etching line width error does not exceed 0.5nm; the use of high-purity hydrofluoric acid can improve chip yield by 8%–10%. Although the domestic substitution rate for electronic-grade hydrofluoric acid reached 15% in 2024, G5-grade (the highest grade) products still rely primarily on imports.
New Energy Sector
Lithium hexafluorophosphate, as the core material for electrolytes, is expected to see shipments reach 239,000 tons in 2025, with the power battery sector's share rising to 65%. The fluoropolymer PVDF, used as a lithium battery binder and separator coating, is growing rapidly alongside the new energy vehicle industry.
Pharmaceuticals and Agriculture
In the pharmaceutical and agricultural fields, fluorinated pharmaceutical intermediates (such as fluorobenzene series) have become key components of anti-tumor and antiviral drugs due to the special biological activity of fluorine atoms; fluorinated pesticides, with their high efficacy and low toxicity, occupy the high-end pesticide market.
Conclusion: China's Path to Industrial Chain Upgrading
The fluorine chemical industry chain clearly presents a value progression logic of "resources – basic raw materials – intermediates – end applications": upstream fluorite mining has the lowest value added, midstream hydrofluoric acid and refrigerants are subject to policy and cyclical profit fluctuations, while downstream fluorinated fine chemicals and electronic-grade materials reflect technological premiums.
At present, China's fluorine chemical industry is undergoing a transformation from "resource export" to "technology export." On one hand, companies such as China Kings Resources have made breakthroughs in fluorite resource integration and high-end beneficiation technology; on the other hand, companies such as Do-Fluoride New Materials, Juhua Group, and National Silicon Industry Group are breaking through the purification and certification barriers of electronic-grade hydrofluoric acid, promoting the domestic substitution of semiconductor materials.
According to the 14th Five-Year Plan for China's Fluorochemical Industry, the target for the industry's global market share by 2025 is set at over 65%. From fluorite to chips, the remarkable journey of this bottle of hydrofluoric acid mirrors a classic trajectory of China's manufacturing sector breaking through toward the high end.
References: China Chemical Industry News, China Commercial Industry Research Institute, Baiinfo, SEMI Standards, public announcements of listed companies
Post time: Jul-10-2026