Material Insights · Understanding the Material World

Caustic soda: Feedstocks

Why electricity, not salt, sets the cost

What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.

Caustic soda shares chlorine's inputs: salt and electricity, plus steam to evaporate. Its supply is set by chlorine demand, not by its own price. Feedstock cost is shared across the ECU, so a producer's competitiveness depends on power price and on how well it can place its chlorine.

Inputs per tonne

InputQuantity per tonneRoleShare of costSource
NaCl Saltabout 1.5 t per t NaOHsodium sourceabout 10% (indicative)EU BREF 2014 (indicative)
Electricityabout 2.2-2.5 MWh per t NaOH (share of ECU)electrolysisabout 50-60% (indicative)EU BREF 2014 (indicative)
Gas Natural gas0.5-1 t steam per t (indicative)evaporation to 50% and flakingabout 10% (indicative)indicative
Sda Soda ashabout 1.3 t per t NaOHsodium sourcedominant in that routeUSGS MCS 2026 (stoichiometric)

Who is low-cost, and why

US Gulf (cheap gas power), China (coal power) and the Middle East are lowest cost; NE Asia ex-China ran about $58 per ECU above China in Nov 2025, and NW Europe about $560 per ECU cash cost. Europe was the clear high-cost producer in 2022 at up to $1,640 per ECU.

Raw materials on the commodity table

NaCl Salt

What it is made into

ProductNote
Cl2 Chlorineco-product
Srf Surfactantsneutralises LAB sulphonic acid and saponifies fats
VSF Viscose fibresteeping of pulp in caustic
Ssi Sodium silicatealternative to soda ash route
PO Propylene oxidechlorohydrin route consumes caustic or lime
EPX Epoxy resinsdehydrochlorination step
CAM Battery cathode materialsco-precipitation of NMC precursors
Phe Phenol and acetoneminor uses