On October 11, 2025, Jinan, Shandong Province - Three months after the world's first 10000 ton bio based silicone rubber production line was put into operation, China's silicone industry is accelerating towards a green and low-carbon future with the dual engines of "bio based substitution" and "circular economy".


Breaking through the cost bottleneck and accelerating the commercialization process of bio based materials
In July 2025, a company in Shandong province utilized the rice husk technology developed by the Chinese Academy of Sciences to produce highly active silane, and built the world's first bio based silicone rubber production line, completely eliminating dependence on petroleum raw materials. This project extracts silicon from biomass waste, reducing costs by 15% compared to petroleum based routes and reducing carbon emissions by 40%.


The performance of bio based silicone rubber has reached 98% of petroleum based products, but the cost advantage will change the market pattern. "The project leader revealed that the production line has signed long-term supply agreements with multiple photovoltaic companies, and it is expected to expand its production capacity to 50000 tons by 2026. At the same time, the sugarcane based methanol project jointly developed by Hesheng Silicon Industry and Brazilian chemical giant has entered the pilot stage, aiming to break the curse of "methanol metal silicon" price linkage and further stabilize raw material supply.


Circular economy legislation drives industrial upgrading, leading to the rise of the recycled materials market
With the implementation of the "15th Five Year Plan for High Quality Development of the New Materials Industry" by the Ministry of Industry and Information Technology, the mandatory recycling rate of silicone adhesive for building demolition will reach 60% by 2028, giving rise to a new business model of "urban mining". The pilot "trade in" recycling system in Guangzhou shows that the performance of recycled silicone rubber can reach 95% of the original raw material, and the cost can be reduced by 20%.


The circular economy is not a multiple-choice question, but a survival question, "said the person in charge of a recycled materials enterprise in Jiangsu. The company has invested 120 million yuan to build a silicone rubber recycling production line with an annual processing capacity of 20000 tons, supplying products to fields such as 3C electronics and automotive manufacturing. Data shows that in the first half of 2025, the market size of China's recycled organic silicon materials will increase by 35% year-on-year, far exceeding the industry average growth rate.


Dual wheel drive of policy and market, green technology becomes the focus of competition
Under policy pressure, enterprises are accelerating their deployment of green technologies. Dongyue Group upgraded its path through the chloromethane method, reducing the energy consumption of individual units by 34%; The environmental impact assessment of Xin'an Tianyu liquid silicone rubber project has been approved, using a low VOC (volatile organic compound) formula that meets the requirements of the EU REACH regulation. In addition, the application of functional silane developed by Suzhou Qitian New Materials in lithium-ion battery electrolytes has increased the battery cycle life by 20%, becoming a technological benchmark in the field of new energy.


Green tariffs are reshaping the global supply chain, "said the supply chain director of a multinational corporation. The EU's carbon footprint tracing investigation of photovoltaic adhesive products has led to an 8% -12% increase in export costs for some Chinese companies. In this context, enterprises with full lifecycle carbon management capabilities will have an advantage.


Future Outlook: From "Cost Competition" to "Value Competition"
According to the "Panorama of Medical Organosilicon Market Access" by Zhongyan Puhua, it is predicted that the certification efficiency of Class III medical devices will increase by 90% by 2028, and high-end products such as degradable silicone rubber vascular stents will stimulate a market worth billions. At the same time, the cross-border integration of "organic silicon+AI" is accelerating, and smart materials such as shape memory silicone rubber artificial muscles and self-healing silicone rubber coatings are entering the eve of commercialization.


When the technology iteration cycle is shortened to 18 months, enterprises must build three core capabilities of 'policy prediction - technology monitoring - industry chain collaboration'. "Experts from Zhongyan Puhua stated that in the future, competition in the organic silicon industry will no longer be limited to cost, but will shift to a comprehensive competition of green technology, scenario definition rights, and global resource integration capabilities.