For any emerging industry to thrive long-term, it must endure short-term pains and achieve raw material independence-only then can it break free from external constraints.
As China's hydrogen fuel cell vehicle sector faces a carbon fiber shortage for hydrogen tanks, domestic producers are rising to the challenge.
Behind Toray's "Lifting" of Carbon Fiber Restrictions
Recent industry rumors suggest Japan's Toray may resume mid-to-high-end carbon fiber supply to China in September, potentially easing material shortages for hydrogen systems.
Gaogong Hydrogen confirmed through multiple channels that Toray signaled plans to relax restrictions-but with conditions.
"It's Toray Korea, not Toray Japan, announcing the supply resumption," an insider revealed. "Japanese supplies will be routed through Korean affiliates and local agents."
The source added that Toray prioritizes consumer markets like sporting goods, delaying industrial applications like automotive.
"High-end fibers (T700+) serve both automotive and sensitive sectors like aerospace/defense," the insider explained. "Amid ongoing U.S.-China trade tensions, military-grade materials remain export-controlled."
Toray dominates global carbon fiber markets with superior product range, performance, and technology. Japan's consolidated industry alliance enables cross-sector R&D breakthroughs while tightly guarding core IP-a strategic tool in geopolitical competition.
"Toray's sudden policy shift likely stems from inventory pressure," said a hydrogen tank executive. "With COVID disrupting Western demand since last December's China embargo, reopening this market is economic necessity."
Domestic Producers Step Up
Fueled by demand from hydrogen buses, logistics vehicles, and heavy trucks, China could become the world's largest hydrogen tank market-projected at ¥323.4 billion (2021-2050).
Amid uncertainty over Toray's phased supply restoration, Chinese tank manufacturers are turning to local alternatives.
"Only a few domestic firms like Zhongfu Shenying and Guangwei Composites currently mass-produce T700+ fiber," said Wang Kai of Aoyang Tech. "Performance matches imports, though consistency needs refinement."
Zhongfu Shenying-pioneering carbon fiber for hydrogen tanks since 2006-leads the charge. Backed by China National Building Materials, it produces T300-T800 fibers at scale and already supplies T800 to aerospace/industrial sectors.
Toray's embargo accelerated Zhongfu Shenying's market capture. "Each tank model requires specialized certification," its regional manager noted. "Top tank makers completed certifications with our T700 fiber this year. We've begun batch supplies but can't yet meet all demand."
To address surging needs, Zhongfu Shenying is expanding T700 capacity: "New lines add ~6,000 tons/year, reaching 11,000 tons by year-end-20% dedicated to hydrogen systems."
While Toray still leads in R&D and scale, securing supply chains is paramount for China's hydrogen industry. "Domestic fiber adoption is driven by supply security," a hydrogen investor emphasized. "Zhongfu Shenying's expanded output will significantly ease shortages by December-Toray's embargo ironically sped up localization."
