Element Solutions Inc (ESI): PESTLE Analysis [Nov-2025 Updated]

Element Solutions Inc (ESI) sits at a fascinating crossroad in 2025: its specialty chemicals are essential for the next wave of tech-think AI and electric vehicles-but global politics keeps the supply chain on a razor's edge. You need to know where the real money is being made and what risks could derail it. Let's dig into the Political, Economic, Social, Technological, Legal, and Environmental (PESTLE) factors shaping ESI's $2.49 billion revenue outlook and give you the actionable insight you need to make a decision.

Political Factors: Trade Friction and Local Operations

Geopolitical tensions are the biggest wild card for ESI. When you operate globally, especially in high-tech supply chains, US-China trade dynamics create real tariff and export control risks. This isn't just theory; it increases supply chain complexity and cost right now. ESI is smart to counter this with a local-for-local strategy, which means producing closer to the end-market to bypass some of these rising trade barriers and sanctions.

Still, regulatory approvals are always a factor. Look at the late 2025 acquisition of Electronic Fluorocarbons, Llc.; that deal needed government sign-off. Politics dictates the speed of growth.

Economic Factors: Strong EBITDA but Dual-Speed Growth

The numbers for 2025 look strong, but they tell a story of two speeds. Management projects full year Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization-a clean measure of operating profit) to land between $545 million and $550 million. Overall revenue estimates hover around $2.49 billion, showing modest growth.

The growth engine is clearly the Electronics segment. That part saw organic growth of 10% in Q1 2025, easily offsetting the softer demand in the Industrial & Specialty side. Inflation and commodity price volatility are defintely still pressuring margins, so watch those input costs closely. The good news? ESI has strong liquidity with a low net leverage ratio of 2.1x, giving them plenty of financial flexibility for acquisitions or buybacks.

Sociological Factors: ESG as an Entry Ticket

The market cares deeply about Corporate Social Responsibility (CSR) now, and ESI is performing. Their EcoVadis Silver Medal and ranking on Newsweek's America's Most Responsible Companies list isn't just PR; it's a required entry ticket for many ESG-focused investors. Honestly, this enhances their reputation and lowers the cost of capital.

The biggest shift is in demand: megatrends like data centers and Electric Vehicles (EVs) are surging. This means ESI's workforce needs to change. They must adapt their labor practices and human rights commitments to ensure they can attract and retain the specialized talent required for these new, high-growth chemical applications. Talent is the new commodity.

Technological Factors: R&D Fueling the AI/EV Boom

You can't be a specialty chemicals leader without spending big on R&D. ESI is putting its money where its mouth is, with an annual R&D investment of approximately $65 million. This is the fuel for future revenue.

They are commercializing two nano-copper products, including Cupreon, for advanced semiconductor packaging by late 2025-a direct play on the AI boom. Plus, they are doubling production capacity for ArgoMax sintered silver to meet the high demand from the EV power electronics market. They even opened a new research center in Bangalore, India, to support global innovation. They are building the future, not just reacting to it.

Legal Factors: Compliance as a Core Operational Cost

Compliance is a massive, non-negotiable operational overhead in this industry. ESI must constantly adhere to complex, multi-jurisdictional chemical regulations like REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and TSCA (Toxic Substances Control Act). Failure here means huge fines and operational stoppages.

Beyond chemical rules, they are also committed to transparency by adhering to the Task Force on Climate-Related Financial Disclosures (TCFD) framework for reporting. And as mentioned, any strategic move, such as the Electronic Fluorocarbons acquisition, requires regulatory approval. Legal risk is baked into the business model.

Environmental Factors: Sustainability as a Revenue Driver

Environmental stewardship is no longer optional; it's a sales tool. ESI's commitment is clear through its sustainability recognition and alignment with the GHG Protocol Corporate Standard. For example, they avoided 7,525 metric tons of greenhouse gas emissions in 2024 through sustainable operations. Here's the quick math: that's like taking over 1,600 passenger cars off the road for a year.

Increasing client demand for sustainable chemistry solutions, especially in the electronics and automotive sectors, means this focus is a revenue driver, not just a cost center. The green premium is real.

Finance: Review the $65 million R&D spend against the commercialization timeline for Cupreon and ArgoMax to ensure a clear path to Q1 2026 revenue contribution.

Element Solutions Inc (ESI) - PESTLE Analysis: Political factors

Geopolitical tensions increase supply chain complexity and cost.

You are defintely right to focus on geopolitics. For a specialty chemicals company like Element Solutions Inc, the current environment means supply chain complexity is a permanent cost driver, not a temporary headwind. The intense competition between the U.S. and China, plus ongoing global conflicts, forces a continuous re-evaluation of sourcing and logistics.

Across the industrial sector, geopolitical factors are a top concern for 55% of businesses in 2025, a significant jump from 35% in 2023. This is not abstract; it translates to higher procurement and transport costs for key inputs. Element Solutions Inc's exposure to high-tech sectors like semiconductor fabrication means they must navigate a global landscape where a single nation controls over 90% of the processing for certain heavy rare earth elements, which are critical for their advanced materials.

US-China trade dynamics pose tariff and export control risks in high-tech sectors.

The core political risk for Element Solutions Inc remains the volatile U.S.-China trade relationship, particularly because their high-growth Electronics segment is so deeply embedded in the Asian supply chain. Analysts, like UBS, have specifically noted the need to account for increased demand risks due to potential tariff escalations impacting the company's local markets in China.

While Element Solutions Inc's overall financial performance remains strong-with full-year 2025 Adjusted EBITDA guidance narrowed to between $545 million and $550 million-the underlying tariff uncertainty is a persistent threat to margin. Management is prepared to react quickly to shifts in demand to address cost and preserve profit, but this is a defensive posture against political action. The risk is less about existing tariffs and more about the sudden, unpredictable imposition of new export controls on advanced chemical precursors used in semiconductor manufacturing.

Local-for-local operations help mitigate the impact of rising trade barriers and sanctions.

Element Solutions Inc's decentralized operating model-what they call 'local-for-local'-is its primary political risk mitigation strategy. By having manufacturing, sourcing, and technical resources close to the customer, they reduce the need for long-haul, cross-border shipments that are vulnerable to tariffs and trade barriers.

This strategy is quantified by their global footprint. For the 2024 fiscal year, approximately 77% of Element Solutions Inc's net sales originated outside the U.S., with Asia and Europe being major contributors. The company's total Trailing Twelve Month (TTM) Revenue as of September 30, 2025, stood at $2.499 billion. This broad geographic diversification provides a crucial buffer against unilateral political actions by any single government.

Here's the quick math on their global scale:

Regulatory approvals are a factor, as seen with the late 2025 acquisition of Electronic Fluorocarbons, Llc.

Mergers and acquisitions (M&A) in the specialty chemicals sector are increasingly subject to political scrutiny, especially when they involve materials critical to national security, like those used in semiconductors and aerospace. This is a direct political constraint on Element Solutions Inc's growth strategy.

The definitive agreement to acquire EFC Gases & Advanced Materials (also known as Electronic Fluorocarbons, Llc.), signed in late 2025, is a perfect example. The transaction, which is expected to close by the end of 2025, is explicitly subject to regulatory approvals and customary closing conditions. The target company supplies high-purity specialty gases to the semiconductor industry, a sector under heavy government oversight regarding technology transfer and supply chain security.

The political risk here is the potential for a lengthy review or, worse, a block by a foreign investment committee (like CFIUS in the U.S.) or an antitrust regulator. This acquisition is strategically important, as it is expected to contribute approximately $30 million to Element Solutions Inc's adjusted EBITDA in 2026. Delays impact the realization of that value.

• Monitor: Regulatory approval timeline for EFC Gases & Advanced Materials.
• Action: Finance/Legal must model a 6-month delay risk to the projected $30 million 2026 EBITDA contribution.

Element Solutions Inc (ESI) - PESTLE Analysis: Economic factors

The economic landscape for Element Solutions Inc (ESI) in 2025 is a tale of two markets: high-growth, secular demand in Electronics contrasting with a persistently sluggish industrial recovery. You need to focus your analysis on this bifurcation, because ESI's strategic pivot to high-value electronics is defintely paying off and insulating them from broader economic malaise.

Full year 2025 Adjusted EBITDA is projected to be strong, between $545 million and $550 million.

Element Solutions Inc has demonstrated impressive financial resilience, raising its full-year 2025 Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) guidance to a range between $545 million and $550 million, based on the latest October 2025 outlook. This updated forecast, narrowed to the high end of its prior range, reflects management's confidence in sustained demand within key technology niches. This is a strong signal, especially considering the divestiture of the MacDermid Graphics Solutions business in Q1 2025, which reduced the overall earnings base by an anticipated $30 million.

Full year 2025 revenue estimates hover around $2.49 billion, showing modest growth.

Consensus estimates for Element Solutions Inc's full-year 2025 revenue are approximately $2.49 billion. This figure represents modest growth over the 2024 annual revenue of $2.46 billion, but it masks the underlying strength of the portfolio. The growth is primarily driven by strategic penetration into high-end markets like data centers and artificial intelligence (AI) infrastructure, which demand ESI's specialized chemical solutions for complex circuit board and chip designs.

Electronics segment growth (e.g., Q1 2025 organic growth of 10%) offsets softer industrial demand.

The Electronics segment is the primary economic engine, consistently delivering high-single-digit organic growth throughout 2025. For example, in the first quarter of 2025, the segment achieved organic net sales growth of 10%, with the Semiconductor business seeing an even stronger 17% organic growth, driven by wafer-level packaging demand. This performance is critical because it offsets the general softness in the Industrial & Specialty segment, which only saw 1% organic net sales growth in Q2 2025, reflecting a challenging, uneven macro-economic environment for traditional industrial end-markets.

Here's the quick math on segment performance:

Inflation and commodity price volatility still pressure margins in the Industrial & Specialty segment.

While the company's focus on specialty chemicals with high intellectual property provides some pricing power, inflation and commodity price volatility remain a persistent economic headwind. The Industrial & Specialty segment, in particular, is more exposed to fluctuations in raw material costs, which can pressure margins. To be fair, Element Solutions Inc has been proactive, mitigating this pressure through aggressive price, procurement, and productivity activities in its industrially exposed businesses. Still, a volatile global trade dynamic, including the risk of further tariffs, adds complexity to the cost structure.

Strong liquidity with a low net leverage ratio of 2.1x provides financial flexibility.

A key economic strength is Element Solutions Inc's robust balance sheet. The company maintains a low net leverage ratio (net debt to Adjusted EBITDA) of approximately 2.1 times as of Q2 2025, which is well below its long-term target of 3.5x. The sale of the Graphics business provided substantial cash proceeds, which were used to reduce debt by $200 million in Q1 2025. This strong liquidity and low leverage give the company significant capacity-nearly $1 billion-to deploy for strategic capital allocation, such as acquisitions or share repurchases, which is a massive competitive advantage in an uncertain economic climate.

Next step: Finance: Assess the impact of a 50 basis point rise in raw material costs on the Industrial & Specialty segment's Q4 2025 margin by Friday.

Element Solutions Inc (ESI) - PESTLE Analysis: Social factors

Sustained focus on Corporate Social Responsibility (CSR) and ethical conduct is validated by the EcoVadis Silver Medal.

You're seeing the specialty chemicals sector increasingly judged not just on quarterly earnings, but on its environmental, social, and governance (ESG) performance. Element Solutions Inc's sustained focus on Corporate Social Responsibility (CSR) is a clear competitive advantage, especially with ESG-focused institutional investors like BlackRock driving capital allocation decisions.

The company earned the EcoVadis Silver Medal, which is a strong validation of its ethical and sustainable practices, placing it among the top 25% of all companies assessed globally by the platform. To be fair, this is a step down from the Gold Medal it achieved in 2023 for its 2022 performance, suggesting a need to accelerate progress to keep pace with rising global sustainability standards. Still, the Silver Medal confirms a strong management system across four key areas: Environment, Labor & Human Rights, Ethics, and Sustainable Procurement.

Here's a quick look at the company's key social metrics as of the 2025 fiscal year context:

Ranked on Newsweek's America's Most Responsible Companies list, enhancing reputation with ESG-focused investors.

Element Solutions Inc has consistently appeared on Newsweek's America's Most Responsible Companies list, which is a critical signal to the market. This ranking is based on a dual-metric approach: publicly available ESG data and a large-scale public perception survey, so it captures both action and reputation.

The company was ranked #114 overall on the 2024 list, out of 600 companies evaluated. More importantly for a specialty chemicals firm, it secured the #11 position within the highly scrutinized Materials and Chemicals industry classification. This is defintely a strong position, but investors seeking best-in-class ESG exposure will look for a top-5 placement. This recognition helps lower the cost of capital by attracting Environmental, Social, and Governance (ESG) funds, which are increasingly mandated to invest in highly-rated companies.

Labor practices and human rights are key pillars of the company's sustainability efforts.

The specialty chemicals industry faces intense scrutiny over its global supply chain and manufacturing footprint, which makes strong labor practices non-negotiable. Element Solutions Inc explicitly includes labor practices and human rights as core pillars of its sustainability efforts, a commitment validated by the EcoVadis assessment.

Focus areas for the company include ensuring ethical conduct in its global operations, which span over 50 countries, and maintaining strong governance over its procurement processes. This focus mitigates the risk of supply chain disruptions and legal penalties associated with modern slavery or poor working conditions. For a global company with approximately 5,300 employees, standardizing these policies across all jurisdictions is a constant, complex operational challenge.

Demand is surging from megatrends like data centers and EVs, which shifts the workforce skill requirements.

The company's growth is increasingly tied to high-tech megatrends, and this is creating a significant shift in its required workforce skills. Element Solutions Inc's full-year 2025 adjusted EBITDA guidance was raised to between $530 million and $550 million, a direct result of strong demand from data center-related customers and advanced foundries.

This financial tailwind from the Electronics segment-which provides specialty chemicals for semiconductor fabrication and communications infrastructure-means the company needs fewer generalists and more highly specialized talent. The most critical skill shifts include a greater need for:

• Chemical engineers with expertise in high-purity materials for advanced semiconductor packaging.
• Data scientists to optimize complex chemical processes and R&D pipelines.
• Technical sales teams fluent in the language of Artificial Intelligence (AI) and Electric Vehicle (EV) battery component manufacturing.

If the company cannot rapidly reskill its existing workforce or attract new talent in these niche areas, its ability to capitalize on the $530 million to $550 million EBITDA opportunity from these high-growth markets will be constrained. They need to be hiring for tomorrow's technology today.

Element Solutions Inc (ESI) - PESTLE Analysis: Technological factors

You're looking at Element Solutions Inc (ESI) to see if their specialty chemical technology can keep pace with the demanding electronics and EV markets. The short answer is yes: their strategy is to out-innovate the market by focusing their substantial R&D budget on high-growth, high-value niches like advanced semiconductor packaging and power electronics. This isn't a bet on volume; it's a focused investment on performance-critical materials.

The company is backing this up with a significant, targeted investment. For the 2025 fiscal year, ESI has allocated approximately $65 million to R&D, which is the engine driving their pipeline of next-generation materials. This spending is directly tied to commercializing products that enable the future of high-performance computing (HPC) and data centers, which are two of the strongest growth sectors right now.

Annual R&D investment is substantial at approximately $65 million to drive innovation

Element Solutions Inc's commitment to R&D is a clear differentiator in the specialty chemicals space. They are not just maintaining their product lines; they are aggressively pursuing new material science breakthroughs. This $65 million annual R&D investment for 2025 is the foundation of their strategy to capture share in the fastest-growing segments of the electronics supply chain.

Here's the quick math: with the full-year 2025 adjusted EBITDA guidance narrowed to a range of $530 million to $550 million, this R&D spend represents a manageable but impactful investment in future growth. The focus is on materials that solve complex problems like thermal management and signal integrity in advanced electronics. This is a defintely high-return approach.

Commercializing two nano-copper products, including Cupreon, for advanced semiconductor packaging by late 2025

The biggest near-term opportunity is in advanced semiconductor packaging. ESI is on track to commercialize two key nano-copper products, including Cupreon (Active Copper), by late 2025. This technology is critical because it directly addresses the severe thermal expansion and reliability challenges in leading-edge semiconductor nodes, such as those used in high-bandwidth memory (HBM) for AI systems.

The underlying ActiveCopper technology, acquired from Kuprion, is designed to improve thermal management and adhesion in applications like IC substrate manufacturing and data centers. If the qualification process with major Asian semiconductor customers takes longer than expected, the revenue ramp will be delayed, impacting the latter half of the 2026 fiscal year.

Doubling production capacity for ArgoMax sintered silver to meet high-demand EV power electronics market

On the power electronics side, the Electric Vehicle (EV) market remains a core growth driver. Element Solutions Inc is doubling its production capacity for ArgoMax sintered silver to keep up with this demand. Sintered silver is a game-changer for EV power inverters because it offers superior thermal conductivity and reliability compared to traditional solder, which is essential for the high-power density components in modern EVs.

The ArgoMax product line, including ArgoMax 2141, directly helps manufacturers create more compact and reliable powertrain systems. This capacity expansion is a clear, actionable response to the rapid global shift toward electrification, particularly in Asia and Europe where their power electronics sales have been expanding rapidly.

New research center opened in Bangalore, India, to support global innovation and product development

To support this global push, ESI opened a new research center in Bangalore, India, in 2025. This move is strategic, positioning their R&D talent closer to the major electronics manufacturing hubs in Asia. It ensures faster feedback loops and localized product development, which is crucial for winning qualifications with key customers in the semiconductor and power electronics industries. The center will support global innovation and product development across their electronics segment, which saw a strong 9% organic growth in Q2 2025.

Next Step: Strategy Team: Model the revenue impact of a 6-month delay in Cupreon commercialization by end of next quarter.

Element Solutions Inc (ESI) - PESTLE Analysis: Legal factors

You're operating in the specialty chemicals business, so legal factors aren't just a compliance checklist; they are a core operational cost and a key barrier to entry for competitors. Element Solutions Inc (ESI) has to navigate a complex, multi-jurisdictional web of chemical, environmental, and financial reporting laws. This legal landscape directly impacts operating expenses and the timeline for strategic growth.

Compliance with complex, multi-jurisdictional chemical regulations (e.g., REACH, TSCA) is a constant operational overhead

As a global specialty chemicals company, ESI faces constant operational overhead from chemical regulations like the European Union's Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) and the U.S. Toxic Substances Control Act (TSCA). These rules require extensive testing, registration, and documentation for thousands of substances across dozens of countries. Honestly, this is a significant non-product cost.

The good news is ESI's 2024 Form 10-K indicated that compliance with Safety, Health & Environmental (SH&E) requirements is not currently expected to have a material effect on capital expenditures. However, what this estimate hides is the ongoing, non-capital expense-the cost of technical staff, legal counsel, and data management systems-which is instead buried in the Selling, Technical, General, and Administrative (STG&A) expenses. For context, ESI's total STG&A expense was $628.8 million in 2024. A small percentage shift in this expense due to a new regulation, like a major update to TSCA, could easily cost millions.

The primary legal risk here is a failure to register a product in a key market, which would halt sales immediately. ESI manages this by maintaining a decentralized compliance structure to address local nuances quickly.

Adherence to the Task Force on Climate-Related Financial Disclosures (TCFD) framework for reporting

The pressure from investors and regulators to disclose climate-related financial risk is real, and ESI is ahead of the curve here. The company is an official TCFD Supporter and aligns its public reporting with the TCFD framework (Task Force on Climate-Related Financial Disclosures). This commitment goes beyond just environmentalism; it's about managing financial risk.

TCFD compliance forces ESI to map out how climate change-like physical risks from extreme weather or transition risks from carbon taxes-could affect its balance sheet. This transparency is key for institutional investors like BlackRock, who increasingly use these disclosures to screen investments. For a company guiding toward a 2025 Adjusted EBITDA of $545 million to $550 million, demonstrating this level of governance is defintely a competitive advantage. It lowers the perceived risk of the stock.

Commitment to human rights and ethical conduct, as part of the EcoVadis assessment criteria

Legal and ethical conduct is increasingly being assessed by third-party platforms like EcoVadis, a global standard for supply chain sustainability ratings. ESI's performance in this area is a direct input into its ability to win contracts with major customers, especially in the consumer electronics and automotive segments.

The company's commitment to human rights, ethical conduct, and sustainable procurement helped it achieve an EcoVadis Silver Medal in a recent assessment, placing it among the top 25% of all companies evaluated by the platform. This is a strong signal to customers that ESI is a low-risk partner. The assessment covers four themes:

• Environment
• Labor and Human Rights
• Ethics
• Sustainable Procurement

Regulatory approval is required for strategic M&A, such as the Electronic Fluorocarbons acquisition

Strategic growth via mergers and acquisitions (M&A) is always subject to legal scrutiny, primarily from antitrust regulators. ESI's recent definitive agreement to acquire Electronic Fluorocarbons (EFC) is a perfect example of this near-term legal bottleneck. The deal, which adds high-purity specialty gases to ESI's portfolio, was announced in November 2025 and is expected to close by the end of 2025.

The closing is explicitly contingent on certain regulatory approvals, which means the legal team is working closely with competition authorities (like the Federal Trade Commission or the European Commission) to ensure the transaction does not create a monopoly or substantially lessen competition in any key market. The successful and timely completion of this legal review is critical, as EFC is expected to contribute approximately $30 million of Adjusted EBITDA in 2026. Any delay pushes back that financial benefit.

Here's the quick math on the deal's timing risk:

Element Solutions Inc (ESI) - PESTLE Analysis: Environmental factors

You need to understand the environmental landscape not just as a compliance issue, but as a core driver of demand and a source of competitive advantage. Element Solutions Inc's (ESI) strategy reflects this reality, focusing on sustainable chemistry (Green Chemistry) to meet increasing client pressure, especially in high-growth sectors like electronics.

Avoided 7,525 metric tons of greenhouse gas emissions in 2024 through sustainable operations.

The company is demonstrating tangible progress in reducing its operational footprint. Through process efficiencies and sustainable operations in fiscal year 2024, Element Solutions Inc successfully avoided 7,525 metric tons of greenhouse gas (GHG) emissions. This is a concrete number that shows a dedication to internal environmental stewardship, moving beyond just product innovation to process optimization.

Here's the quick math: avoiding that many metric tons of CO2 equivalent is roughly the same as taking over 1,600 passenger vehicles off the road for a year. That's a significant operational win.

Aligning reporting with the GHG Protocol Corporate Standard and TCFD recommendations.

From a transparency and governance perspective, Element Solutions Inc is aligning its environmental reporting with leading global standards. The company accounts for its emissions in accordance with the Greenhouse Gas (GHG) Protocol Corporate Standard, which is the globally accepted framework for measuring and managing GHG emissions.

Also, the company aligns its disclosures with the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). This TCFD alignment is defintely crucial because it forces the company to articulate climate-related risks and opportunities in financial terms, which is what investors and sophisticated financial analysts like you need to see. This is a sign of a mature, forward-thinking risk management framework.

Commitment to environmental stewardship is a core component of its sustainability recognition.

Honesty, environmental stewardship is now a strategic imperative, not a side project. Element Solutions Inc's commitment is validated by external recognition, which helps maintain a strong reputation and access to capital. The company's focus on environmental sustainability is a key factor in its repeated inclusion on prestigious lists.

For instance, the company received an EcoVadis Silver Medal in 2024, placing it among the top 25% of all companies assessed globally for sustainability performance. This recognition specifically calls out their strong performance in environmental stewardship and ethical conduct. This kind of third-party validation helps mitigate greenwashing risk for investors.

Increasing client demand for sustainable chemistry solutions, especially in the electronics and automotive sectors.

The biggest opportunity for Element Solutions Inc is the accelerating client demand for 'greener' products, particularly in its core markets. Enabling sustainability is a major pillar of their strategy, driving their research and development (R&D) efforts.

The Electronics segment, which supplies materials for consumer electronics, power electronics, and semiconductor fabrication, saw 7% organic net sales growth in the third quarter of 2025. This growth is partly fueled by advanced technologies that require more complex, and often more sustainable, chemical solutions to solve emerging customer pain points related to power and thermal management.

The company is focused on developing chemistry that allows their customers to meet their own sustainability goals. This includes:

• Developing solutions for more complex circuit board and chip designs.
• Creating chemical systems that enhance performance while reducing energy consumption in the customer's manufacturing process.
• Focusing R&D on sustainable chemistry and processes in collaboration with regulatory teams.

While the company noted some softening in the power electronics market due to electric vehicle (EV) demand dynamics in Q3 2025, the long-term trend still points to a massive need for advanced, high-performance materials in the automotive sector's shift to electrification.