China Lily Group plans to build "annual output of 1,000 tons of polyether ether ketone (PEEK) material project."

Project Design Logic and Investment Highlights

on January 30, 2026, Lily Group announced that it would invest no more than 0.1 billion yuan to build a 1,000-ton polyether ether ketone (PEEK) material project in Qiantang District, Hangzhou. The project covers an area of about 30 mu (20,000 square meters), with a construction area of 15,000 square meters and a land use life of 50 years. The phased construction mode is adopted: the first phase investment does not exceed 50 million yuan (including land cost), the production capacity is 200 tons/year, and the construction period is 12 months; the second phase investment is 50 million yuan, and the production capacity is 800 tons/year.

Investment Intensity and Strategy Analysis
the investment per unit capacity in the first phase is about 250000 yuan/ton, and the investment intensity of equipment and construction after deducting land cost is about 20-220000 yuan/ton, which is at a reasonable level in the industry. PEEK is a technology-intensive product. The production equipment requires extremely high control of reaction temperature (300-400 ℃), pressure and purity, and the proportion of equipment investment usually reaches 60%-70%.

The phased construction reflects three strategic considerations: reduce initial risk-The first phase only accounts for 20% of the total production capacity, and the pace of the second phase will be decided after verifying the market demand and technological maturity; accelerated fund recovery-Based on the average price of PEEK in 2024 of 373000 yuan/ton, the first phase of 200 tons of full production sales of 74.6 million yuan, after deducting costs, cash flow can partially support the second phase of construction; maintain strategic flexibility-- The structure of Phase II products can be adjusted according to market changes, such as increasing the proportion of high-end products such as medical grade and semiconductor grade.

The construction period of the first phase is only 12 months, which is much shorter than the conventional cycle of 18-24 months for similar projects, reflecting the company's strategic intention to quickly enter the market and seize opportunities. Hangzhou Qiantang District Linjiang High-tech Park has perfect chemical facilities and convenient logistics conditions, and is close to the core consumer market of the Yangtze River Delta.

Market Size and Growth Drivers

global market: niche but high growth
global PEEK consumption in 2024 is about 10,000 tons, an increase of 13.8 percent year-on-year, and the market size is expected to reach $1.226 billion billion in 2027. If 13.8 per cent growth continues, global consumption will exceed 14,000 tonnes in 2027. Compared with PE, PP and other general plastics with annual consumption of hundreds of millions of tons, PEEK belongs to the "small and beautiful" market segment, but the 13.8 growth rate is far higher than the 5%-7% of traditional engineering plastics, reflecting the strong demand in high-end applications.

China Market: Global Growth Engine
china's PEEK demand surged from 1,100 tons in 2018 to 3,904 tons in 2024, a compound annual growth rate of 23.6 percent, far exceeding the global average. In 2024, China will account for 39% of global demand and become the world's largest single market. The market size is 1.455 billion yuan, corresponding to an average price of 373000 yuan/ton, which is 25 times that of general engineering plastic ABS (about 15000 yuan/ton), fully reflecting the high value-added attribute.

The drivers of the explosive growth of the Chinese market include: new energy vehicle penetration-- PEEK is used for high-voltage connectors, charging guns and battery thermal management systems, with a single vehicle consumption of 0.5-1kg, and the global sales volume of 15 million new energy vehicles in 2025 corresponds to the potential demand of 7,500-15,000 tons/year; medical Implant Needs-- Rapid growth in applications such as orthopedic implants and dental restorations; semiconductor localization-- PEEK is used for wafer transfer, etching equipment and other key components; aerospace Upgrade-Used for structural parts, piping systems, etc.

Emerging Applications: Humanoid Robots and Low-Altitude Economies
humanoid robots are seen as the "killer app" for PEEK ". The amount of PEEK for a single robot is about 2-5kg (for harmonic reducers, joints, skeletons, etc.). If the global shipment volume reaches 1 million units in 2030 (refer to Tesla Optimus and other plans), the corresponding demand is 2,000-5,000 tons/year, which is equivalent to 20%-50% of the global consumption in 2024. Domestic enterprises have adopted PEEK composite materials on harmonic reducer products, and the technology path is gradually maturing.

Low-altitude economy (eVTOL) is in urgent need of lightweight and high-strength materials. PEEK composite materials can replace aluminum alloy and carbon fiber for fuselage structure, landing gear, battery compartment, etc. The PEEK consumption of a single eVTOL is about 10-20kg. If the low-altitude economic market reaches the level of 100 billion US dollars in 2030, it will open up considerable incremental space.

Supply and Demand Pattern and Competitive Situation

global PEEK supply is highly concentrated, with major producers including international giants such as Victrex, Solvay and Evonik, with a combined market share of over 70%. China's PEEK production capacity of about 2,000-3,000 tons/year, the main enterprises include China Research and Development Corporation, blender technology, etc., but high-end medical-grade, semiconductor-grade products still rely on imports.

After the completion of the lily 1,000-ton project, it will become one of the important PEEK suppliers in China. From the perspective of supply and demand balance, China's demand in 2024 is 3,904 tons, domestic production capacity is about 2,500 tons (considering the insufficient capacity utilization rate of some enterprises), and the supply gap is about 1,400 tons dependent on imports. If the Chinese market maintains a growth rate of 23.6, demand will reach 7,500 tons in 2027, and the supply gap will further expand, providing room for localization.