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Advancements in and rising demand for electric vehicles (EVs) have ushered a new era for the rubber industry on a global level. EVs are becoming popular across the United States, Europe, and China, which necessitates for the rubber materials market to adapt to meet new performance requirements. The global push for electrification is reshaping the automotive industry, and the rubber sector is no exception. Unlike internal combustion engine (ICE) vehicles, which generate significant heat and rely on oil for lubrication, EVs operate with different thermal and mechanical properties. This fundamental shift is changing the demand for specific rubber compounds. Historically, ICE vehicles have heavily depended on nitrile rubber due to its excellent resistance to heat and oil. However, as EVs do not produce heat in the same way or require oil-based lubrication, manufacturers are moving away from nitrile rubber and embracing new materials. Key alternatives include ethylene propylene diene terpolymer (EPDM), silicone, thermoplastic elastomers (TPE), and thermoplastic vulcanizates (TPV), all of which offer superior insulation, electrical conductivity, and weather resistance. Lightweight materials are another priority for EV manufacturers, as reducing vehicle weight directly impacts battery efficiency and driving range. As a result, rubber compounds that balance durability with lightweight properties are in high demand. Asia, particularly China, leads the world in EV adoption and production. With an increasing number of EVs rolling off production lines, the demand for advanced rubber materials in the region continues to rise, shaping global trends and influencing supply chain strategies. Beyond the automotive industry, the rubber industry is struggling with supply chain volatility. Raw material shortages, price fluctuations, and logistical bottlenecks are affecting production capabilities worldwide. Many manufacturers are finding it increasingly difficult to source essential rubber compounds, forcing them to explore alternative suppliers and substitute materials.

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