The Chemical Industry in 2026: An Executive Briefing from the Leaders Redefining Competitive Advantage

Chemical industry trends 2026 point to a familiar set of pressures — slower growth, geopolitical fragmentation, margin compression, and sustainability commitments that still have to justify themselves financially. What has changed is where leaders are looking for advantage. For most of the industry’s history, competitive edge came from what a company could invent: a better molecule, a stronger patent position, a more efficient process. That foundation has not disappeared. But it is no longer where the contest is being decided.

Interviewed separately ahead of CIEX North America 2026 — across different companies, functions, and regions — a group of senior chemical leaders returned repeatedly to the same conclusion: the difficulty is no longer generating innovation. It is scaling it. What follows is a consolidated view of what they told us, organized around the themes the event was built to address.

Chemical Industry Trends 2026: From Pilot to Plant

The constraint most of these leaders described is not a shortage of ideas. It is the difficulty of converting a proven capability into consistent performance across a complex organization. The pattern recurs regardless of function: a promising concept, a successful pilot, and then a stall at the point where the work has to scale.

Lewis Sweet, General Manager Global Refining and Chemicals at Honeywell, states the case plainly. The obstacle, in his view, is rarely the technology itself but the organization’s capacity to embed a working solution consistently across sites and assets. His formulation is deliberately unsparing: the bottleneck is not the tool, it is the enterprise operating around it.

Venki Chandrashekar, President and CEO of AmSty, has observed the same dynamic from within a commoditized business, where there is little tolerance for initiatives that fail to deliver. He describes the recurring failure as the distance between ideation and execution — organizations that generate strong ideas but cannot reproduce them reliably at scale. His remedy is not greater creativity but greater discipline: treating innovation with the same rigor applied to any core business process, complete with defined objectives, measurable outcomes, and clear ownership.

Thanos Yiagopoulos, CTO of Momentive, locates the same problem in the operating environment. Progress comes readily in research settings, where new tools accelerate formulation, scouting, and the screening of technical options. It comes far more slowly on the plant floor, where fragmented data and aging infrastructure resist modernization. The decisive factor, he notes, is often whether the people running those operations trust a new approach enough to change established practice — a question of adoption rather than technical merit.

When advantage is available to everyone

Viewed together, these chemical industry trends 2026 raise a more uncomfortable question. If advantage now depends on operationalizing capability, what remains once competitors operationalize the same capability?

Jayshree Seth, Corporate Scientist and Chief Science Advocate at 3M, confronts the point directly. Optimization, she argues, is not the source of breakthroughs — and when every organization optimizes along the same lines, using the same methods, differentiation erodes. The implication reframes the entire question of adoption. Access to tools confers no lasting edge once that access is universal. What endures is judgment: the discernment to recognize which signal matters, and the discipline to protect the exploratory, non-linear work that cannot be automated.

Michael Lefenfeld, CEO of Hexion, reaches a parallel conclusion from the commercial side of the business. Applying new capability to isolated tasks, he observes, produces incremental gains but no durable position. The more consequential opportunity lies in connecting the enterprise itself — research informed by manufacturing, manufacturing informed by customers — so that the organization compounds its own intelligence over time rather than capturing it in fragments. Advantage, on this account, is a property of the system, not of any single tool within it.

Resilience and discipline, decided in advance

Another defining feature of chemical industry trends 2026 is that execution applies to strategy as much as to operations. Two leaders described resilience and innovation discipline as deliberate commitments, made ahead of need and under real constraint, rather than responses to disruption once it has arrived.

Marc Block, Global VP Performance Chemicals at Wanhua Chemical Group, treats supply chain resilience as a matter of design rather than contingency. A company becomes exposed, he argues, the moment its network is optimized around a single trade-flow assumption or feedstock basis. His account of the trade-off deserves to stand as stated: “the cost of resilience is paid gradually; the cost of fragility arrives all at once when a route closes, a feedstock spikes, or a tariff lands.” Flexibility carries a cost in stable conditions, and accepting that cost is precisely the discipline that separates the prepared from the exposed.

Jamie Cohen, Vice President of R&D, Industrial Intermediates & Infrastructure at Dow, applies the same logic to the innovation pipeline. Under sustained pressure to deliver near-term results, she argues, the conditions for genuine ideation quietly disappear unless an organization protects them by design. Her position is that ideation must be treated as a full business exercise — structured, resourced, and accountable — rather than an activity permitted only when the schedule allows.

Speed as a function of design

A final thread draws the argument together. Even acceleration — the capability most organizations assume can be purchased — proves to be a matter of design rather than expenditure.

These chemical industry trends 2026 point to a broader shift: competitive advantage increasingly depends on how effectively organizations operationalize capability.

Jack Dever, CTO of AVN Corporation, contends that process technology development can move considerably faster than the industry currently accepts as its norm. The gain, however, does not follow from additional resources. It follows from combining sharper work processes with equipment that is well-defined and readily reconfigured, and — he is emphatic on this point — from implementing both together rather than either in isolation. The lesson echoes the others across every function represented here: the binding constraint is not the level of investment, but the deliberateness with which the work itself is designed.

Join the conversation at CIEX North America 2026

These decisions are not being made in isolation — and neither should yours be. In three weeks, the leaders quoted here join CEOs, CTOs, and R&D heads from across the industry for two days of senior, execution-focused exchange on exactly these challenges: scaling AI, building resilience, and turning innovation into measurable performance.

September 9–10, 2026 | Indianapolis

Featuring leaders from 3M, Dow, AVN Corporation, Eastman Chemical, Honeywell, Huntsman, Albemarle, Momentive, Cabot, Hexion, Wanhua Chemical Group, AmSty, and more

Seats are limited as the event approaches.

Taken together, these chemical industry trends 2026 show that execution, resilience, and organizational design are becoming as important as technological innovation itself.

Register for CIEX North America 2026 →

AI-Enabled Chemistry: How Hexion Is Moving Beyond the Commodity Model

AI-enabled chemistry is reshaping how the chemical industry creates value — and the stakes have rarely been higher. Geopolitical uncertainty, changing customer expectations, and the pressure to move beyond commoditized products are forcing companies to rethink not just what they produce, but how they compete. Few leaders are moving faster on that shift than Michael Lefenfeld, President and CEO of Hexion, who since 2023 has been transforming the company from a commodity supplier into a technology-driven leader in advanced materials.

A scientist and serial entrepreneur holding over 100 patents, Lefenfeld brings a rare combination of technical depth and CEO-level strategic perspective to CIEX North America 2026. In this interview, he makes the case that AI’s real opportunity in chemicals is not incremental efficiency — it is a fundamental rethink of how a chemical company creates value, moving beyond commoditized products toward intelligence-driven, high-value customer solutions.

CIEX: What is one idea about the future of the chemical industry that you hope challenges the audience’s thinking?

Michael Lefenfeld, CEO, Hexion

Michael: What if we’re asking the wrong questions about AI?

Most of the conversation in our industry is about making existing work faster. Better productivity, more automation, faster reporting. Those are real gains, but not the story that our industry should care about.

The real story is the fact that AI gives us a chance to rethink how a chemical company actually creates value. Not incrementally. Fundamentally.

For more than a century, we’ve competed by developing better molecules, scaling production, and driving continuous improvement. That foundation is certainly not going away. But now we’re in a period where chemistry has the chance to become part of a much larger value system, one where chemistry, manufacturing, customer operations, and AI continuously learn from and influence one another. Plants that don’t run at steady state. Variability, which used to be a cost center, now becoming a source of competitive intelligence. That’s an entirely different business.

And here’s what really excites me. That shift doesn’t just create value for customers. It creates entirely new value for chemical manufacturers too: deeper customer relationships, new service models, revenue streams that didn’t exist before. Our product business doesn’t disappear. It becomes the foundation that everything else is built on.

If people leave my keynote asking themselves, “What business are we really going to be in ten years?” then we’ve had the right conversation.

CIEX: What motivates you to join CIEX this year, and where are you most looking to learn from peers at this event?

Michael: I always tell my teams, the most innovative ideas in any company don’t come from the boardroom. It happens in the cafeteria.

That’s where an engineer bumps into someone from operations. Where commercial teams push back on R&D. Where someone asks a question nobody else thought to ask in a meeting. Innovation usually starts with a conversation, not a presentation.

CIEX is the chemical industry’s cafeteria. It’s a place where CEOs, scientists, and technology leaders come together, not just from different functions but from across the breadth of our industry — specialty chemicals, materials, petrochemicals — to wrestle with and debate questions none of us have fully answered yet. For me, that kind of cross-pollination is where the really interesting stuff happens.

And the best part? Some of the best conversations that happen at events like this don’t stay as conversations. They turn into partnerships. Many of our biggest breakthroughs at Hexion have come from working with companies that bring completely different capabilities to the table. No single company, no single sector, is going to reinvent this industry on its own.

I’m absolutely looking forward to hearing where people are succeeding. But honestly, I’m just as interested in where they’re struggling. Those conversations are usually more valuable, and sometimes they become the foundation for breakthroughs and partnerships that move the industry forward.

CIEX: How has your approach to balancing volume growth and value creation evolved in recent years, and what is one decision you have made here that would have been unthinkable three years ago?

Michael: For all of my career, volume and value have been tightly linked. The more chemistry you sold, the more value you created for the business. Today, I’m not sure that’s true anymore.

Volume still matters. Manufacturing efficiency still matters. After all, at scale, a one-cent improvement in operating performance can create millions of dollars of financial value. Those fundamentals aren’t changing. What’s changing is where the next layer of growth comes from.

Here’s a decision that would have been hard to imagine a few years ago. Hexion is currently investing in technologies that help customers optimize their own material usage, even when that means they buy less product from us. On the surface, that sounds like the wrong direction.

But here’s what we’ve learned. If we help a customer reduce resin usage or increase throughput, we’ve built a stronger relationship than we ever could by simply selling more resin. You might ask, how is it that we won’t cannibalize our business? Because as we help our customers improve, we’re also building a second business on top of the current one: performance services, intelligent software, new commercial models, new markets.

The companies that lead this industry over the next decades will combine great chemistry with intelligence, services, and outcomes. Great chemistry alone won’t be enough.

CIEX: Where is AI-enabled innovation already moving a hard business metric, and where is it still not delivering?

Michael: Honestly, we’re all still in the early stages. The companies that expect AI to walk in and move the needle right away are mostly finding out it doesn’t work like that. It won’t fix broken processes. It won’t replace operational discipline. It won’t replace experienced people. If strong fundamentals aren’t there, AI just fails faster.

Where we are seeing real promise is in manufacturing. Plants generate enormous amounts of data, and operators have always had to make decisions in the middle of all that noise. Quality, throughput, energy, raw materials, maintenance, cost — all moving at once, limited real-time data, all connected. What AI does well is make sense of that in real time and get the right information to the right person before the moment passes. The decisions are still human. They’re just better ones. That’s where we think the early wins are going to come from.

I believe the bigger opportunity is still largely untapped. Most companies are using AI to optimize individual tasks and processes. What changes the game is connecting the whole business: imagine R&D learning continuously from manufacturing, manufacturing learning continuously from customers, chemistry getting smarter because every part of the system is learning together. When that happens, AI stops being another technology project and starts becoming a genuine competitive advantage.

CIEX: How are you approaching sustainability priorities alongside broader economic and commercial considerations? Where have you had to draw the line on sustainability because the economics did not hold?

Michael: Something customers taught me early: they rarely wake up asking for sustainability. They wake up asking how to reduce waste, improve yield, lower energy costs, and make their operations more competitive.

But if we solve those problems well, sustainability usually follows. That’s changed how I think about the whole topic. I don’t see it as a separate initiative anymore. I see it as the outcome of running a smarter, more efficient business and making green chemistry principles the foundation of all innovation.

That said, not every sustainability idea makes economic sense today, and I think it’s important to be straight about that. Some technologies need more time. Some markets aren’t ready. In those cases, the answer isn’t to force adoption. It’s to keep advancing the science until the economics become compelling. Pretending otherwise doesn’t serve anyone.

What’s interesting is that AI is accelerating sustainability programs. It’s surfacing efficiencies that were always there but impossible to see before. When the economics follow the science, sustainability stops being a cost of doing business and starts becoming a competitive advantage.

CIEX: Looking ahead, what factors and capabilities will define competitive advantage in the chemical industry over the next few years?

Michael: Ask me this same question in ten years and I think we’ll smile at how narrowly we used to define a chemical company.

The winners won’t just make better products. They’ll build better systems. Chemistry will always be the foundation, but the companies that lead will integrate AI, manufacturing intelligence, application expertise, and customer data to create value that competitors can’t easily replicate. They’ll move faster because they’re learning faster. Intelligence scales in ways that headcount and capacity never could.

We’ll also see business models that barely exist today. Performance services. Intelligent software. Adaptive formulations. The product business won’t disappear. It becomes the platform that enables entirely new businesses to grow alongside it.

For twenty years, software transformed the digital world. I believe the next twenty years belong to the physical world: manufacturing, energy, construction, chemicals. That’s where the complexity lives, and complexity is where the real opportunity is.

I don’t think we’re watching the chemical industry adapt to AI. I think we’re watching it redefine itself.

Is Your Business Model Built for the Next Era of Chemical Value Creation?

At CIEX North America 2026, Michael Lefenfeld takes the stage in the session AI-Enabled Chemistry as a Service — a keynote built for leaders ready to move beyond the commodity model and rethink how chemistry creates value in the age of AI.

Leaders from 3M, Dow, Eastman Chemical, Honeywell, Huntsman, Albemarle, Momentive, Cabot, and Wanhua Chemical Group will be in the room.

September 9–10, 2026 | Indianapolis

Aligning R&D Capital With Future Markets: Arkema’s Horizon-Based Portfolio Strategy

Arkema’s Portfolio Management Strategy for Innovation Across Horizons

Innovation strategy in the chemical industry is often discussed in terms of breakthrough technologies, digital transformation, and sustainability targets. Yet in practice, much of corporate R&D effort remains concentrated on short-term business continuity.

Dave Moss, Director of Technology & Innovation, Arkema

During the session “Adding Elasticity To Innovation For Growth: Arkema´s Portfolio Management Strategy For Innovation Across Horizons” at CIEX, Dave Moss, Director of Technology & Innovation at Arkema, addressed a structural issue that many chemical organizations recognize but struggle to correct: the imbalance between near-term operational priorities and long-term innovation investment.

Drawing on prior experience, he described a business environment in which annual churn approached 30%, requiring the organization to generate equivalent levels of new revenue each year simply to maintain its position. Under such conditions, R&D resources become concentrated on immediate replacement activity, limiting capacity for longer-horizon innovation.

“That was Horizon 1,” Dave noted. “And that business isn’t with us anymore.”

You can explore the full executive summary from the presentation below or watch the complete presentation recording via the link below.

📹 Watch the full Arkema presentation: [Link]

Arkema´s Portfolio Management Strategy For Innovation Across Horizons

Presentation executive summary

The Compression of the Innovation Horizon

The traditional McKinsey three-horizon framework remains a useful reference point for structuring innovation portfolios. Horizon 1 typically addresses immediate product support and incremental improvements. Horizon 2 builds capability in adjacent technologies and emerging markets. Horizon 3 creates options for future businesses.

However, in Arkema’s markets, Moss emphasized that the timeframes associated with these horizons have shortened significantly. In his segment of the business, Horizon 1 may span zero to one year, Horizon 2 one to two years, and Horizon 3 two years and beyond.

Arkema’s presentation slides at CIEX 2025

This compression alters the risk profile. Organizations that delay Horizon 3 investment are unlikely to feel the impact in five years. They may feel it much sooner.

At the same time, business unit leaders are naturally focused on short-term performance. Horizon 1 supports today’s revenue. Horizon 3 requires protected investment without immediate return.

Without deliberate governance mechanisms, resource allocation tends to drift toward the near term.

“You can Horizon 1 yourself right out of busines,” Dave cautioned.

Structuring Horizon 2 and 3 Innovation: From Strategy to Execution

For Arkema, success in long-term growth depends on a disciplined approach to mid- and long-term innovation, or Horizon 2 and Horizon 3 projects. These initiatives are focused on emerging markets, adjacent technologies, and “out-of-the-box” opportunities where the company may not yet have full capability or commercial presence. To manage this, Arkema leverages Discovery Hubs and engages business unit stakeholders to generate and evaluate potential projects.

Arkema’s presentation slides at CIEX 2025

The process begins with a clear understanding of the playing field: market needs, application opportunities, and competitive technologies. Projects are then assessed for their potential to differentiate Arkema in the marketplace, with feasibility evaluated against internal capabilities. Where gaps exist, the company actively considers open innovation models, partnering with startups, universities, suppliers, and even select competitors to bridge capability gaps without incurring excessive capital or headcount requirements.

Once feasible projects are identified, they are screened for strategic fit, ensuring alignment with the company’s broader innovation strategy and targeted markets. Prioritization follows a value-driven approach, taking into account potential impact, resource availability, and technical risk. FTE allocations are mapped across business units and time horizons to avoid bottlenecks, ensuring that the company can advance the most promising initiatives efficiently.

This structured methodology not only ensures that Horizon 2 and 3 projects remain aligned with corporate objectives, but also provides transparency and accountability across global R&D operations. Visual tools, such as the horizon planning map, illustrate the allocation of resources, the stage of each initiative, and the integration of open innovation efforts, allowing Arkema to maintain flexibility while systematically pursuing growth options that secure long-term competitive advantage.

Portfolio Governance as Strategic Discipline

A recurring theme in the presentation was the distinction between portfolio management and project management.

Project management governs execution. Portfolio management governs direction.

Arkema’s presentation slides at CIEX 2025

Within Arkema’s framework, portfolio management serves to align R&D investment with future market positioning rather than current revenue concentration. The objective is to anticipate shifts in customer demand and technology requirements and ensure that capability development is synchronized accordingly.

This requires clarity around innovation pillars, market positioning, and internal capability assessment. Arkema conducts global portfolio reviews at least twice annually to maintain alignment across business units and geographies. These reviews provide visibility into resource allocation and ensure that Horizon 3 initiatives remain structurally supported.

Equally important is transparency around resource deployment. Moss described mapping full-time equivalent (FTE) allocations across business units and quarters. With multiple business units drawing from the same technical resource pool, bottlenecks are inevitable unless proactively managed.

By visualizing these allocations, Arkema can identify future constraints early and make informed decisions about reprioritization, collaboration, or external engagement.

This level of visibility transforms innovation strategy from aspiration into accountable investment management.

Open Innovation as a Resource Strategy

Arkema’s Horizon 3 approach also relies heavily on open innovation, though not in the conventional venture-capital model.

The company does not operate a corporate venture fund. Instead, it seeks structured partnerships that create value for both parties.

Arkema’s presentation slides from CIEX 2025

With startups, Arkema may provide analytical capabilities, laboratory infrastructure, or access to customers rather than direct capital investment. Such arrangements can accelerate technology development while minimizing capital intensity.

University collaboration forms a structured component of the company’s external innovation model. While funding doctoral research is standard practice across the industry, the focus extends beyond early-stage science to commercial translation. Academic innovations frequently face barriers in scaling and market access; established industrial relationships can provide the route-to-market and application validation required to convert laboratory research into viable product platforms.

Collaboration with suppliers and, increasingly, with competitors also plays a role. In a fragmented industry, one company may hold market access while another possesses complementary technical capabilities. Under carefully defined scopes, such collaborations can create value where independent efforts might stall.

In each case, the objective is not openness for its own sake but the efficient extension of Horizon 3 capacity without proportional increases in fixed cost.

Internal Visibility and Organizational Complexity

Large, diversified chemical companies face another challenge: internal fragmentation.

Moss acknowledged that even within Arkema, it can be difficult to maintain full visibility across global business units. In some cases, technical solutions to current challenges may already exist elsewhere within the organization.

Improving internal communication and knowledge sharing is therefore not merely an efficiency initiative. It is part of ensuring that existing capabilities are fully leveraged before external resources are pursued.

Stage-Gate and the Management of Risk

At the project level, Arkema applies a Stage-Gate framework to manage development risk. Project selection is addressed at the portfolio level; Stage-Gate governs execution once strategic alignment has been established.

Training is central to making this system effective. Project teams must understand gate expectations, and gatekeepers must align their evaluation criteria with the appropriate development stage. Without this shared understanding, governance processes can become counterproductive.

The objective is not bureaucracy but controlled acceleration — balancing speed with informed decision-making.

AI Integration: From Operations to Formulation

Artificial intelligence is becoming an increasingly important component of Arkema’s technology strategy, with applications spanning manufacturing, supply chain operations, and R&D.

Arkema’s presentation slides at CIEX 2025

At the manufacturing level, structured process data supports performance optimization and operational efficiency. In supply chain management, digital tools improve asset utilization, logistics coordination, and decision-making accuracy. These operational applications are already delivering measurable value.

R&D applications are more complex, particularly in formulation chemistry. Unlike simpler systems, Arkema’s products may involve six or more interacting components, requiring extensive, structured datasets to enable reliable predictive modeling.

Legacy data often lacks the consistency required for machine learning. Arkema’s response has been forward-looking: ensuring that new experimental data is captured in electronic lab notebooks and laboratory information management systems in formats suitable for future AI deployment.

Arkema’s presentation slides at CIEX 2025

The long-term objective includes predictive modeling of structure–function relationships and, potentially, toxicity and ecotoxicity profiles. If realized, such capabilities could fundamentally alter how sustainability considerations are integrated into product development.

Sustainability as Forward Design

Sustainability pressures continue to intensify across chemical markets. Rather than treating regulatory compliance as a late-stage requirement, Arkema is exploring how predictive tools might inform material design at the earliest stages.

The ability to anticipate environmental and toxicological impact during formulation would shorten development cycles, reduce regulatory uncertainty, and strengthen market positioning in sectors where environmental performance is increasingly scrutinized.

In this context, sustainability becomes a design parameter rather than an afterthought.

Structural Lessons for the Industry

Arkema’s experience illustrates a broader point relevant to chemical industry leadership. Long-term competitiveness is not secured through incremental optimization alone. It requires disciplined portfolio governance, transparent resource allocation, strategic external collaboration, and sustained investment in emerging capabilities such as AI.

Horizon 3 cannot be left to residual capacity. It must be intentionally structured and protected.

For organizations facing compressed innovation cycles, sustainability pressures, and digital transformation simultaneously, that discipline is no longer optional.

Where These Strategic Questions Move From Theory to Practice

The structural issues outlined above are not isolated operational matters; they are shaping board-level conversations across the chemical sector.

CIEX North America 2026 is designed as a working forum for senior leaders addressing disciplined portfolio governance, AI integration, capital efficiency, and sustainability-driven product design. It focuses on the operational realities behind these strategic imperatives.

Join us for two focused days with senior leaders in R&D, innovation, and sustainability across the consumer, industrial, and specialty chemical sectors — tackling:

• Scaling new technologies beyond the pilot phase
• Embedding AI and digital tools into real R&D workflows
• De-risking innovation through the right partnerships
• Turning sustainability targets into profitable product pipelines

Expect practical case studies from leading global brands, proven methodologies, and direct access to senior decision-makers across the chemical industry.

📍 CIEX North America | September 9–10, 2026

If you influence innovation strategy, R&D direction, or technology investment — this is where you need to be.

Sustainability as Strategy: How PPG Powers Growth Through Chemical Innovation

Editor’s Note: Peter Votruba-Drzal is Vice President of Global Sustainability at PPG, where he drives innovation and sustainable growth across multiple markets. Peter will speak at CIEX 2025, held on September 17–18 in Indianapolis, U.S.A., alongside leaders from Dow, 3M, BASF, DuPont, and more. Below is a preview of the insights he’ll share at the summit.

Peter Votruba-Drzal, VP Global Sustainability, PPG

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

Peter: From supporting communities where we live and work, to developing products and processes that help mitigate environmental impacts and solve our customers’ biggest challenges, PPG’s sustainability commitments contribute to the positive impact we achieve through our purpose and are a key enabler of achieving our growth strategy.

The most important takeaway for attendees is how critical it is to leverage sustainability as a strategic imperative and business growth driver. We always say that we don’t have a sustainability strategy – we have a business strategy rooted in sustainability and productivity-driving operational excellence for PPG and our customers. Now more than ever, it’s important to collaborate with customers and suppliers to create value through sustainability.

CIEX: What motivates you to join CIEX this year?

Peter: I feel passionate about the need to collaborate across the value chain to drive meaningful change and work toward collective sustainability targets that are good for business. At PPG, we believe in partnering with a variety of public and private entities to advance technologies and capabilities that create sustainable benefits for existing and future products and services. CIEX provides a venue to foster learning and collaboration.

CIEX: In what ways have emerging technologies most significantly transformed your R&D process over the past few years – and what impact has this had on speed to market?

Peter: At PPG, we aim to be our customers’ first choice partner for innovative paints, coatings and specialty products. Products that provide productivity and sustainable advantages for our customers are instrumental to our growth.

We define sustainably advantaged products using PPG’s internal methodology that validates product attributes and their contribution towards the United Nations Sustainable Development Goals. While many of our products have sustainable attributes in their end-use that promote longevity of customer assets, we consider products sustainably advantaged when they contribute to improved environmental outcomes or provide relative improvements over industry benchmarks. PPG’s internal methodology of sustainably advantaged assessment is utilized not only for existing products but also throughout the new product development process. This development methodology alongside market pull has transformed value creation in the products we develop.

Machine learning is another technology that has begun to transform our research and development (R&D processes. Routine laboratory tasks like color development, formula cost reduction, and accelerated weathering testing are all examples where machine learning is increasing the speed of our development and allowing our R&D resources to shift to more value creation activities.

CIEX: What are the biggest challenges – and best practices- you’ve seen in scaling innovation from lab to market while staying aligned with business objectives?

Peter: In PPG’s markets, it is common that an invention in chemistry or formulation is needed to meet the market performance requirements. In those cases, speed to market can be a challenge due to the discovery cycle. Utilizing a framework of product and technology roadmaps can provide the enterprise clarity on future technology needs. Investment in our teams’ capabilities enables the development of intellectual property, platform development of enabling technology, and internal expertise ahead of the needs within the product development organization.

CIEX: Open innovation, customer responsiveness, and integrated supply chains are gaining traction. What partnerships or collaborations have been most impactful in driving sustainable growth for your business?

Peter: Partnerships with suppliers and applicators have been most impactful for PPG. Leveraging strategic suppliers to develop customized raw materials accelerates product development by leveraging the strengths and capabilities of the supply base for innovative solutions. Partnerships and pilot trials with applicators are extremely important upon scaling a technology from laboratory to end application. Testing over a range of application variables to define the Process Failure Mode Effects Analysis (PFMEA) is critical to ensure a robust product and successful commercialization.

CIEX: Looking ahead, what do you see as the most critical capability chemical companies must develop to remain competitive in the next decade?

Peter: I think it goes without saying that sustainably advantaged products and process innovations are the future in our markets. Customers are continually looking for technology that makes them more operationally efficient and delivers superior performance. Beyond customer expectations, regulatory pressures will also accelerate the transition to sustainably advantaged innovations, and companies must be prepared for this shift.

Alongside this, the use of digital tools to create operational efficiency both within your own operations and for your customers is of utmost importance. For example, PPG’s automotive refinish business is delivering share gain by introducing new technology that helps body shops realize efficiency, drive profitability and improve sustainability.

We have long delivered best-in-class technology with the award-winning PPG Envirobase waterborne system. More recently, we have focused on providing ways to make industry-leading platforms deliver more flexibility.

Out-of-the-can technology solutions include the PPG LINQ™ end-to-end digital solution for global automotive refinish customers. The PPG LINQ ecosystem connects, automates, and digitizes the entire refinish process. It enables painters to modernize the repair processes using its interconnected digital hardware, software, and innovative services.

The PPG MOONWALK™ system, which is the company’s award-winning, automated paint mixing system for refinish body shops, marked the first of many customer-centric innovations that fall within PPG’s digital ecosystem powered by PPG LINQ. This industry-leading system is most notably recognized for its extreme colorimetric precision, significant economic benefits and increased labor productivity. PPG LINQ also features the PPG DigiMatch™ spectrophotometer; PPG VisualizID color visualization software; and the PPG MagicBox body shop assistant. To learn more about PPG LINQ, visit our website.

For more information about PPG, visit our website and most recent Sustainability Report.

CIEX: Thank you so much, Peter! We look forward to hearing more from you at CIEX 2025!

Secure Your Spot at CIEX 2025 — The Leading Platform for Chemistry & Innovation

Be where senior R&D, innovation, and sustainability leaders from the consumer, industrial, and specialty chemical sectors come together to shape the future.

Now in its 11th edition, CIEX creates real value by uniting decision-makers, sparking collaborations, and facilitating partnerships that drive progress.

📅 September 17–18, 2025 | Indianapolis, U.S.A.

Join the community powering the future of chemistry — digital, sustainable, and collaborative. Gain exclusive insights, connect with peers, and take part in discussions that set the industry agenda.

🎟 It’s the last chance to register– grab tickets today! Register here.

Staying Ahead: How the Chemical Industry Can Remain Competitive Beyond 2030

In this article, industry leaders from LanzaTech, BASF, Evonik, Dow, DuPont, Syensqo, Arkema, PPG, Cabot and more share what it takes to lead in a decarbonized, digital future.

The chemical industry is undergoing one of the most significant transformations in its history. To remain competitive beyond 2030, companies must fundamentally rethink how they operate, innovate, and deliver value in a rapidly evolving global economy.

Sustainability, circularity, digitalization, and talent development are no longer optional—they are the engines of growth and resilience. We asked thought leaders from across the industry who will participate in CIEX 2025 to share the critical capabilities that will define tomorrow’s winners.

Their responses make one thing clear: future competitiveness requires bold reinvention, not cautious optimization.

Circularity Is the New Value Driver

For decades, the industry has focused on linear models of production—extract, produce, dispose. This model is no longer viable in a world demanding sustainability and accountability.

“One of the most critical capabilities chemical companies must develop to remain competitive is the integration of circular supply chain principles,” says Jennifer Holmgren, CEO of LanzaTech. LanzaTech’s technology turns waste carbon into raw material, effectively giving emissions a second life. This isn’t just a climate solution—it’s a business opportunity. “This isn’t circularity for circularity’s sake,” Holmgren continues. “There is profit to be made in using our waste to create more product. Companies that invest early can capture more of the value chain, gaining a strategic edge and driving higher margins in a premium segment of the energy market.”

Jean Vincent, Head of RD&I Americas at Evonik, agrees: “The world is changing at a drastic pace. Companies must fully embrace not just the concept of sustainability, but also ways to bring it to reality while maintaining competitiveness.”

Peter Votruba-Drzal, VP Global Sustainability at PPG, reinforces this view: “We don’t have a sustainability strategy—we have a business strategy rooted in sustainability and operational excellence. Collaboration with customers and suppliers is essential to create value through sustainability.”

Sustainability Must Be Embedded in Strategy

To thrive in a low-carbon economy, companies need to embed sustainability into every level of their operations—from raw materials sourcing to manufacturing and product development. “Mastering a circular economy, sustainable renewable sourcing of raw materials, and low-carbon emission processes—along with digital and AI-driven innovation—are imperatives,” says Arthur Martin, VP R&D North America at Arkema. Peter Votruba-Drzal illustrates how this plays out in practice: “We define sustainably advantaged products through a rigorous methodology aligned with the UN Sustainable Development Goals. This approach transforms value creation and is embedded throughout the product development process.”

This approach goes far beyond compliance. Forward-thinking companies are treating sustainability as a competitive advantage, unlocking growth in new markets while aligning with the evolving expectations of regulators, customers, and investors.

A New Mindset for a New Era

For global chemical companies like BASF, the key to navigating future challenges lies in entrepreneurial thinking. “We need to sense how the world is changing and adapt quickly,” says Dr. Amit Gokhale, Director of Process and Chemical Engineering R&D at BASF. “That means adopting new technologies, building new business models, and increasing our tolerance for risk.” He emphasizes that collaboration—between companies, suppliers, customers, and even competitors—will be essential for reducing investment risk and accelerating the scale-up of next-gen solutions.

Patricia Hubbard, SVP and CTO at Cabot, agrees and stresses the importance of adaptability: “Companies must actively seek new information and design systems to evolve under uncertainty to stay competitive.” The CIEX 2025 conference will provide a great opporunity to hear successful case studies, find collaborators and develop new ideas.

The Digital Leap: AI as a Strategic Capability

In the race to stay ahead, artificial intelligence (AI) and digital technologies are emerging as transformative tools—not just for productivity but for discovery, decision-making, and engagement. “Chemical companies need to adopt AI and build an AI culture,” says Mike Finelli, Chief Technology & Innovation Officer at Syensqo. “This includes leveraging AI for process optimization, accelerated discovery, and customer engagement. It’s imperative to remain competitive in an increasingly digital market.” AI allows R&D teams to reduce trial-and-error in labs, optimize supply chains, and customize products faster and more precisely than ever before.

“The tools available for understanding the science and evaluating the impact of materials are advancing at an unprecedented pace,” adds A.N. Sreeram, CTO and SVP of R&D at Dow. “Companies must stay at the forefront of rigorous analysis while being as nimble and responsive as possible.”

Talent, Trade-Offs, and the Innovation Engine

Technology alone won’t deliver transformation—people will. That means building a workforce ready to lead across sustainability, science, digital, and systems thinking. “Innovators will need to balance often conflicting trade-offs—performance, sustainability, resilience—with an increasing focus on speed,” says Marty DeGroot, VP Technology at DuPont. He emphasizes that innovation must now consider the full value chain and how decisions reverberate across complex ecosystems. “This will require access to modern capabilities and a strong emphasis on talent development and upskilling to use these capabilities effectively.”

Patricia Hubbard adds a crucial lens on timing innovation: “Timing is the hardest aspect of scaling innovation. The best practice is to keep options open, build flexible assets, and invest when customers are ready to scale. This approach helps de-risk growth while aligning with business goals.”

Reinventing the Future—Now

What does it truly mean to be competitive beyond 2030? It means developing low-carbon technologies and circular models—not as side projects, but as core business strategies. It means using AI not just to automate, but to accelerate invention. And it means empowering people across the organization to lead with curiosity, courage, and collaboration. “Chemical companies that invest early,” says Jennifer Holmgren, “can capture more of the value chain from feedstock to final product.”

The challenge ahead is clear—but so is the opportunity. The companies that act boldly today will not just survive tomorrow. They will lead it.

Powering the Future of Chemical Industry at CIEX 2025 Summit

CIEX is the leading platform for senior-level R&D, innovation, and sustainability professionals from the consumer, industrial, and specialty chemical sectors. Now in its 11th edition, CIEX is focused on creating value by bringing together the right people, fostering synergies, and actively facilitating connections among potential partners.

Join us on September 17 & 18, 2025, in Indianapolis, U.S.A. and get exclusive access to the community powering the future of chemistry — digital, sustainable and collaborative!

🎟Register today to secure your spot!

Advancing Sustainability: The Role of Carbon Capture and Utilization – CCU in the Chemical Industry

Advancing Sustainability: The Role of Carbon Capture and Utilization- CCU in the Chemical Industry

Insights from Celese’s Global Head of Sustainability

The 2024 CIEX North America conference in Indianapolis was a tremendous success, bringing together chemical leaders to share cutting-edge advancements, discuss real-world case studies from global players and build lasting professional connections. The event stood out by fostering meaningful synergies and creating opportunities for collaboration among potential partners.

To give you a glimpse of the insights shared, we are excited to feature an article based on one of the event presentations—delivered by Celanese’s Global Head of Sustainability, Kevin Norfleet. You can explore the session summary or listen to the full audio presentation below:

Kevin Norfleet, Global Head of Sustainability, Celanese

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Introduction

As industries worldwide seek sustainable solutions to reduce carbon emissions, Carbon Capture and Utilization (CCU) is emerging as a game-changer. One of its most promising applications is methanol production, a vital component in numerous industrial and consumer products. By adopting CCU, we can move toward a circular carbon economy, minimizing reliance on fossil resources and significantly lowering emissions.

Understanding CCU and Its Industrial Relevance

CCU technology plays a crucial role in reducing carbon emissions by capturing CO2 and converting it into valuable products. Kevin emphasizes that the chemical industry must move beyond theoretical discussions and take practical steps toward implementation. “We could talk about CCU till we’re blue in the face, but if we insist on the perfect solution—using only green hydrogen and direct air capture CO2—the costs will be so extraordinary that nothing’s ever going to happen,” he notes. Instead, he advocates for incremental advancements that align with current economic realities.

“We could talk about CCU till we’re blue in the face, but if we insist on the perfect solution—using only green hydrogen and direct air capture CO2—the costs will be so extraordinary that nothing’s ever going to happen.”

One of the key applications of CCU is the production of methanol, a versatile chemical that serves as a building block for numerous industrial processes. Kevin explains, “With methanol, we then make an incredible array of things… turning methanol into acetic acid, which then transforms into adhesives, construction materials, and other essential products.” By utilizing CO2-derived methanol, industries can significantly lower their carbon footprint while maintaining supply chain stability.

Regulatory Challenges and Market Adoption

Despite the clear environmental benefits of CCU, regulatory frameworks often lag behind technological advancements. Kevin Norfleet points out the inconsistencies in policy approaches, particularly in Europe. “Within the same regulatory environment, mass balance accounting is accepted for sustainable aviation fuel but rejected for building products,” he observes. This fragmentation makes it difficult for industries to scale sustainable innovations, despite growing consumer and corporate interest in carbon footprint reduction.

Another significant challenge is the disconnect between demand signals along the supply chain. Many large corporations have ambitious sustainability goals but struggle to translate them into actionable procurement strategies. “Oftentimes, demand signals are lost in long supply chains, where smaller intermediaries lack the resources to track and communicate carbon footprint data,” Kevin explains. To address this, he stresses the need for clearer commercial structures that integrate sustainability into pricing models and business agreements.

“Oftentimes, demand signals are lost in long supply chains, where smaller intermediaries lack the resources to track and communicate carbon footprint data.”

The Economic Case for CCU

One of the key takeaways from Norfleet’s presentation is the economic viability of CCU, particularly in industrial hubs like Houston, where CO2 emissions are abundant. “We don’t think there’s ever going to be a shortage of CO2,” he notes, underscoring the potential to harness these emissions for sustainable production. The challenge, however, lies in making the business case compelling enough for widespread adoption.

Celanese has taken a pragmatic approach by ensuring that CCU-derived methanol meets robust sustainability credentials while remaining commercially viable. Norfleet emphasizes that the ultimate goal is to demonstrate market demand: “What success looks like is if I can sell all of this CCU methanol we made and prove that there is a market—then we can go do more.”

Conclusion

CCU methanol represents a critical step toward a more sustainable industrial landscape. While challenges remain, the potential benefits—both environmental and economic—make it a worthwhile pursuit. By fostering collaboration, refining regulations, and creating commercial structures that reward sustainability, we can unlock the full potential of CCU and redefine the future of chemical production.

Are you a C-level professional seeking to establish new collaborations, connect with potential partners, and expand your network? Join us at CIEX 2025 – Chemical Innovation Exchange Summit to hear from and engage with industry leaders, global experts, and innovative thinkers from around the world.

After a celebrated first edition of CIEX North America at The Center in Indianapolis, we are happy to return on September 17&18 2025! Expect an expanded show floor, additional networking opportunities, side events and of course two days of high-level exchanges, networking and discussions.

CIEX is designed for C-level R&D, Innovation, and Sustainability experts from the consumer, industrial, and specialty chemical sectors. Keynote presentations, panel discussions, round tables as well as one-on-one meetings give you every opportunity to connect with the chemical leaders of today and tomorrow.

Get your early-bird ticket today—hurry before they sell out! Limited availability!

Exploring Digital Transformation’s Impact on Chemical Research with DOW

Exploring Digital Transformation’s Impact on Chemical Research with DOW.

CIEX 2024 Speaker Interview with Rui Vogt Alves da Cruz, VP of Core R&D, Dow

Rui Vogt Alves da Cruz, VP Core R&D, Dow

Today, we interviewed Rui Vogt Alves da Cruz from Dow to discuss key insights ahead of his upcoming session at CIEX in Indianapolis this October.

Rui Cruz, vice president for Dow Core R&D, a global Research and Development organization which drives the long-term R&D vision for Dow. Prior to this role, Rui was the senior regional R&D director for the Europe, Middle East, and Africa region and Core R&D director for Europe. He joined Dow in Brazil in 2001, having worked in Human Resources, Customer Services, Technical Services, and Research and Development for several different businesses and technologies.

Read the short interview below to learn more about Rui’s session “Impact of Digital Transformation on Research and Development”.

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

Rui: How the digital transformation is impacting and accelerating chemical and material science research.

CIEX: What motivates you to join CIEX this year?

Rui: The ability to meet and discuss industry challenges with other great leaders in the field. I had a great time participating in CIEX in Europe in my previous role.

CIEX: With deglobalization, circularity and the energy transition as key trends currently shaping the chemical industry, what are the challenges to overcome and opportunities to harness?

Rui: The industry can have a great impact to the overall sustainability challenges, both in terms of improving our own footprint and also providing our customers with products and technologies that will support decarbonization and circularity journeys.

CIEX: What is one project or initiative in the industry, outside of your own company and associations that really inspired you recently, and why?

Rui: Our overall decarbonize and growth strategy, and specifically our Path2Zero project with a carbon-neutral cracker and derivatives plant in Alberta, Canada is extremely exciting and demonstrates how technology addresses our sustainability challenges, meets customer and market needs and generates great business.

CIEX: Thank you so much, Rui! We look forward to seeing you at CIEX 2024!

The 10th Annual Chemical Innovation Exchange Summit (CIEX) is created for C-level R&D, Innovation and Sustainability experts from the consumer, industrial and speciality chemical sectors. This intimate event is about creating value – bringing the right people together, creating synergies, and actively connecting with potential partners. CIEX will take place in Indianapolis on October 23-24. Companies presenting include Dow, Ashland, Cargill, Huntsman, Monument Chemical, US DOE, BASF, The Heritage Group, and many more.

Secure your spot at the CIEX Summit and register today!

Circular Economy: How Specialty Polymers Can Enable Sustainable Solutions – Insights from CIEX 2024 Speaker

Circular Economy: How Specialty Polymers Can Enable Sustainable Solutions

Speaker interview with David Thomas, Global R&I Director, Specialty Polymers, Syensqo

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

David: During the panel session my core message will focus on how specialty polymers can be a key enabler of the circular economy, but there are still some important challenges to overcome. I aim to emphasise how Syensqo is leading the way in developing advanced materials that not only replace traditional ones but also contribute significantly to sustainability efforts. I want delegates to remember that the chemical industry holds a pivotal role in this transition, and by innovating responsibly, we can create materials that support a more sustainable and circular future.

David Thomas, Global R&I Director, Specialty Polymers, Syensqo

CIEX: What motivates you to join CIEX this year?

David: I am motivated to join CIEX this year by the opportunity to engage with other thought leaders and innovators in the chemical industry. CIEX offers a unique platform for exchanging ideas, exploring emerging trends, and forging strategic partnerships. The focus on innovation, sustainability, and R&D aligns perfectly with Syensqo’s mission to push the boundaries of what’s possible with specialty polymers. Additionally, I am eager to contribute to and learn from discussions on how we can collectively navigate and shape the future of our industry.

CIEX: With deglobalization, circularity and the energy transition as key trends currently shaping the chemical industry, what are the challenges to overcome and opportunities to harness?

David: The challenges we face include the need to rethink supply chains to ensure resilience and adaptability in a deglobalizing world, developing technologies that enable true circularity, and accelerating the transition to renewable energy sources. In the public sphere, the regulatory landscape needs to be updated to better enable the new circular economy. However, these challenges also present significant opportunities. By embracing circularity, we can drive innovation in recycling and waste management, creating new business models and revenue streams. The energy transition offers a chance to develop cutting-edge materials for clean energy technologies, positioning the chemical industry as a key player in the fight against climate change.

CIEX: What is one project or initiative in the industry, outside of your own company and associations that really inspired you recently, and why?

David: One inspiring chemical industry project that has recently gained attention is the ChemCycling initiative by BASF. Launched in 2018, this initiative focuses on the chemical recycling of plastic waste that cannot be effectively recycled through mechanical means. The process involves converting mixed plastic waste and end-of-life tires into pyrolysis oil, which is then used as a feedstock in BASF’s production, effectively replacing fossil resources.

This project is inspiring because it showcases how innovative thinking in chemistry can provide solutions to complex environmental challenges while also addressing the real challenge of reverse logistics. It demonstrates the potential for the chemical industry to be a leader in sustainability and circular economy principles, rather than being seen solely as part of the problem.

CIEX: If the future of the chemical industry is high-tech, low carbon – what are 3 essential elements needed today, to realize this?

David:

Investment in R&D: Continuous investment in research and development is critical to discover and commercialise new materials and technologies that are both high-performing and environmentally friendly. This includes advancements in recycling technologies and the development of biodegradable or bio-based polymers.
Collaboration and Partnerships: Building strong collaborations across the value chain from raw material suppliers to end users is essential. By working together, we can accelerate innovation, share best practices, and develop integrated solutions that address the complex challenges of sustainability.
Regulatory Support and Incentives: Governments and regulatory bodies play a crucial role in shaping the industry’s future. Supportive policies, incentives for green innovations, and stringent regulations on carbon emissions and waste management can drive the industry towards a more sustainable path. These elements create an environment where sustainable practices are not only encouraged but also economically viable.

CIEX: Thank you so much, David! We look forward to seeing you at CIEX 2024!

Secure your spot at the CIEX Summit and register today!

Pioneering Sustainable Innovation: Ashland’s Strategy for a High-Tech, Low-Carbon Future

Interview with CIEX NA speaker- Osama M. Musa, senior vice president and chief technology officer, Ashland

CIEX: Osama, thank you for joining the speaker panel for CIEX 2024! Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

Ashland (NYSE: ASH) is a global, consumer market-focused additives and speciality ingredients company that is responsibly solving for a better world. Through science and a conscious and proactive mindset for sustainability, we invented “new to the world” technology for customers in pharmaceutical, personal care, architectural coatings, construction, energy, food and beverage.

CIEX: What motivates you to join CIEX this year?

Osama M. Musa, SVP & CTO, Ashland

Ashland has launched exciting, new technology platforms aligned to our core that extend to secondary markets with new and differentiated capabilities to unlock organic growth for us and for our customers worldwide. We believe our platform solutions are applicable to CIEX because they bring “new to the world”, sustainable innovations, offering choice to customers, prospects and consumers in personal care, pharma, coatings and more. These technology platforms enable users to reshape global megatrends and respond to various regulatory landscapes. If CIEX C-level R&D, Innovation, and Sustainability experts aren’t familiar with them, or the capabilities they can bring, they should contact us to meet and learn more.

CIEX: With deglobalization, circularity and the energy transition as key trends currently shaping the chemical industry, what are the challenges to overcome and opportunities to harness?

At Ashland, we are passionate, tenacious scientists who thrive on answering the most complex challenges. We view deglobalization, circularity and energy transition as opportunities and we consider environmental, social and governance (ESG) as part of our strategic business and operating plans.

Product design and lifecycle management – Ashland takes a holistic innovations approach with environmentally responsible, cradle to grave consideration, incorporating upcycling and circularity models that proactively help customers manage the lifecycle of their products. This includes inception through the engineering, design, and manufacture, through service and disposal, reuse, or biodegradability in the environment. We understand the desire that every product must be accounted for at every stage of its life.

Innovation and technology – Ashland is at the forefront of the design, synthesis and production of additives and specialty ingredients essential to everyday life and we take an innovative approach to answering our customers most complex challenges. This includes waste and hazardous materials management. As a responsible care company, we strive to mitigate and continuously reduce our manufacturing risk and we have robust management systems to help ensure we are operating responsibly and transparently.

Ashland is managing our environmental footprint by tracking and working towards science based targets to reduce our manufacturing footprint through renewable energy and energy efficiency projects. Our R&D, commercial and manufacturing teams are identifying creative solutions that drive towards lean manufacturing and continuous improvement.

CIEX: If the future of the chemical industry is high-tech, low carbon – what are 3 essential elements needed today, to realize this?

First, regarding climate change risks and management, Ashland has set near term science-based targets to help continue to reduce our emissions as a part of the broader global initiative to limit global warming to 1.5C. We are both assessing and responding to climate risk in our operations and supply chain because this is an important part of our long-term business continuity. As a global company with sites in many countries around the globe, moving to low-carbon manufacturing is complex yet essential to realizing our goals in the manufacture and delivery of safe products and solutions for customers and the environment.

This includes employing Good Manufacturing Practice principles in personal care and life sciences; minimizing quality risk through robust risk assessment and mitigation; increasing natural, nature derived, biodegradable and sustainable in use product solutions and eliminating or reducing hazardous chemicals through innovative processing and manufacturing of products.

The long-term success for Ashland as well as our customers also must include operating transparently. Credibility over time builds trust. And that trust only comes from clear transparency in everything we do. Therefore, as we solve, we take a steadfast adherence to core values to avoid conflicts of interest and consistently track and hone accounting practices. Our board of director members, committees and ESG work groups focus on ESG transparent management systems.

Second, Ashland’s business model resilience includes responsibly innovating which means high engagement with customers and industry ecosystems to customize, invest and explore new growth initiatives so we deliver consistent and reliable value for stakeholders. Ashland has a strong innovation culture and capabilities, and we have aligned our technology portfolio where environmental, social and governance (ESG) is a growth and innovation opportunity.

And third, ethical corporate behavior and safety is at the foundation of everything we do. We strive to be transparent and ethical in all that we do and have a robust system of ethics and compliance controls that ensure we operate in a legal and fully ethical manner.

Ashland has an effective and active governance structure and mechanisms where ESG is integrated into our board and senior leadership activities and oversight. Our employee and leadership compensation are tied to our sustainability performance to drive ownership, accountability, and continued success in our initiatives.

Secure your spot at the CIEX Summit and register today!

Enhancing Domestic Supply Chains and Recycling Critical Battery Materials

Enhancing Domestic Supply Chains and Recycling Critical Battery Materials with Cirba Solutions

Interview with CIEX NA 2024 speaker -David Klanecky, CEO, Cirba Solutions

CIEX: Without giving too much away – what is the core message of your talk and what would you like delegates to remember?

David Klanecky
CEO
Cirba Solutions

David: During my session at this year’s CIEX North America, I want attendees to understand the critical need for enhancing our domestic supply chain, ultimately becoming less reliant on foreign entities for critical materials and ensuring we work toward something that is sustainable for all parties in the supply chain.

To do this effectively, we need to shift the paradigm on how we source raw materials domestically and create a closed-loop approach supply of critical battery materials. By sourcing domestically, and specifically recycling and reusing, we can have a significant impact on cost and reduce the carbon footprint.

The demand for critical, battery-grade materials is rapidly outpacing supply, especially due to the rapid growth of electric vehicles. With EV adoption projections over the next 10 years, recycling is a crucial component to meeting the supply and demand. These materials can be used over and over again, they are infinitely recyclable. And that is where recycling comes in. The largest mine we have today is on our own roads and in our homes – in our junk drawers, the tools in our garage, and even our electric/hybrid cars.

CIEX: What motivates you to join CIEX this year?

David: As chemical engineers and business leaders, we must play an active role in the evolving multitude of transformational changes we are undergoing in society today, including electrification of how we move goods and the creation of sustainable supply chains. These are difficult problems to solve and cannot be accomplished in a vacuum. By joining CIEX this year, those of us in the chemical manufacturing fields can collaborate and share ideas to help in providing solutions for these societal issues.

CIEX: With deglobalization, circularity and the energy transition as key trends currently shaping the chemical industry, what are the challenges to overcome and opportunities to harness?

David: Today, North America produces the 3rd largest volume of end-of-life batteries in the world, and only about 5% are recycled. Batteries that are not recycled often end up in landfills or are shipped to other countries. This improper disposal poses a serious threat to the environment. Landfilled batteries can leak toxic chemicals, polluting our soil and water sources. Additionally, they can cause thermal events.

Approximately 95% of the critical minerals in an end-of-life battery can be extracted and repurposed. These recovered materials can be reused in the production of new batteries, reducing reliance on virgin resources.

If they are shipped to another country, then we lose the opportunity to recover and reuse them, rendering our supply chains vulnerable.

Even as the recycling industry heats up, we are playing a game of catch-up. As new battery chemistry and pack/module designs emerge, recyclers must adapt by the time those cars reach their end-of-life, which could be 8-10 years down the line. Recyclers need to stay ahead of the innovation curve and build foundational recycling processes that can easily adapt to and integrate with the evolving needs of the market and partners. This ensures efficient, sustainable resource recovery that ultimately benefits American consumers.

CIEX: What is one project or initiative in the industry, outside of your own company and associations that really inspired you recently, and why?

David: Extended Producer Responsibility (EPR), which is a requirement that some states are adopting to ensure that more batteries are recycled at their end of life. It ensures that there is a longer-term outcome required for each battery (at end-of-life), and companies like Cirba Solutions can become the ‘preferred’ battery recycler to ensure these batteries are recycled and the critical materials are recovered.

CIEX: If the future of the chemical industry is high-tech, low carbon – what are 3 essential elements needed today, to realize this?

David: Sourcing Domestically: It is estimated that in some cases, critical battery metals for cathode active materials travel over 50,000 miles before they reach a lithium-ion battery manufacturing facility. If we change our approach to how we source critical materials, we can reduce nearly 96% of logistical movement and the CO2 associated with it by sourcing critical minerals domestically.

Recycled content in EVs: By using premium upgraded recycled metals, we will make an additional impact on CO2 emissions. With recycled materials, we see:

A 40% reduction of CO2 per ton of Lithium produced when using recycled materials compared to mining.
10% reduction of CO2 per ton of Nickel produced when using recycled materials compared to mining.
8% reduction of CO2 per ton of Cobalt produced when using recycled materials compared to mining

Continued legislation like the Inflation Reduction Act: With legislation, we can promote the development of a domestic, circular battery supply chain, which will be critical in pushing forward EV and battery manufacturing growth.

Initiatives like this which aim to address climate challenges by providing tax credits and grants are a critical component in pushing forward a transition and securing our domestic lithium supply chain.
This is significant because responsible and sustainable domestic sourcing and processing of the critical materials used to make lithium-ion batteries will strengthen American supply chains, accelerate battery production to meet increased demand and secure the nation’s economic competitiveness, energy independence, and national security.

CIEX: Thank you so much, David! We look forward to hearing more from you at CIEX 2024!

The 10th Annual Chemical Innovation Exchange Summit (CIEX) is created for C-level R&D, Innovation and Sustainability experts from the consumer, industrial and speciality chemical sectors. This intimate event is about creating value – bringing the right people together, creating synergies, and actively connecting with potential partners. CIEX will take place in Indianapolis on October 23-24. Companies presenting include: Dow, Ashland, Cargill, Huntsman, Monument Chemical, Evonik, Celanese, US DOE, BASF, ACS, AdvanSix, The Heritage Group, and many more.

Secure your spot at the CIEX Summit and register today!