CLEVELAND, OH – September 26, 2025 – Lubrizol Corporation, a global leader in specialty chemicals, today announced the groundbreaking introduction of its HybriCal™ lithium-free grease thickener technology. This innovative solution, based on anhydrous calcium, marks a pivotal moment for the industrial lubrication market, offering a high-performance alternative to the long-dominant lithium-based greases. The move is set to immediately address critical industry challenges, including the volatile pricing, unpredictable availability, and increasing regulatory scrutiny surrounding lithium, potentially reshaping demand for this key industrial commodity.

The immediate implications are profound for both the industrial grease sector and the broader lithium market. For grease manufacturers, HybriCal™ provides a robust pathway to diversify their product portfolios, enhance supply chain resilience, and "future-proof" formulations against potential regulatory shifts. For the lithium market, Lubrizol's innovation signals a potential reduction in demand from the lubricant sector, offering a counterbalance to the surging appetite for lithium from the electric vehicle battery industry and possibly mitigating some of the intense price volatility experienced in recent years. This development underscores a growing industry trend towards sustainable and resilient material sourcing.

Unpacking the Innovation: Lubrizol's Strategic Leap Towards a Lithium-Independent Future

Lubrizol's HybriCal™ technology represents a significant leap forward in grease formulation, developed to directly compete with and potentially surpass the performance benchmarks set by traditional lithium and lithium complex greases. The core of this innovation lies in its anhydrous calcium base, engineered to deliver exceptional high-temperature stability, superior performance in long-life bearing tests, and inherent lubrication properties such such as load carrying and wear protection. Notably, HybriCal™ has already met the stringent High-Performance Multiuse (HPM) Grease Specification from the National Lubricating Grease Institute (NLGI), validating its readiness for widespread industrial adoption.

The timeline leading to this launch highlights a strategic and proactive approach by Lubrizol (NYSE: LZ). Recognizing the escalating challenges posed by lithium – including a staggering 715% price increase since Q3 2021 and the European Chemicals Agency's (ECHA) provisional classification of lithium hydroxide as a Category 1A reproductive toxin – Lubrizol invested heavily in research and development to secure a viable alternative. This extensive R&D culminated in the September 26, 2025, announcement, positioning Lubrizol as a frontrunner in addressing critical supply chain vulnerabilities and regulatory concerns. Key players involved include Lubrizol's advanced materials scientists and engineers, who meticulously developed and tested the HybriCal™ formulation. Initial market reactions are expected to be cautiously optimistic, with grease manufacturers likely to explore this new technology to safeguard their production and mitigate risks associated with lithium dependency. The efficiency gains in manufacturing, such as lower processing temperatures and reduced dehydration times, also present an attractive proposition for producers looking to optimize their operations.

Shifting Fortunes: Winners and Losers in the Wake of HybriCal™

The introduction of Lubrizol's HybriCal™ lithium-free grease thickener technology is poised to create distinct winners and losers across various industries, fundamentally altering competitive landscapes and investment considerations.

Potential Winners:

• Lubrizol Corporation (NYSE: LZ): As the innovator behind HybriCal™, Lubrizol stands to gain significantly. The company could capture substantial market share from traditional lithium grease producers, solidify its position as a leader in specialty chemicals, and enhance its brand reputation as an environmentally conscious and forward-thinking supplier. The ability to offer a stable, high-performance alternative addresses a critical pain point for customers, potentially leading to increased sales and long-term contracts.
• Industrial Grease Manufacturers (e.g., SKF (STO: SKF B), ExxonMobil (NYSE: XOM) Lubricants): Companies that quickly adopt and integrate HybriCal™ into their product lines will be able to diversify their supply chains, reduce exposure to lithium price volatility, and offer "future-proof" products to their customers. This could provide a competitive edge, allowing them to maintain stable pricing and consistent product availability, particularly if regulatory pressures on lithium intensify.
• Calcium Carbonate and Anhydrous Calcium Suppliers: As HybriCal™ is based on anhydrous calcium, demand for these raw materials is likely to increase. Companies involved in the mining, processing, and supply of calcium-based compounds could see a boost in their business.
• End-Users of Industrial Greases (e.g., Mining, Manufacturing, Automotive Industries): These industries will benefit from more stable grease pricing, improved supply security, and access to high-performance lubricants that are less susceptible to raw material market fluctuations. This can lead to more predictable operational costs and reduced downtime.

Potential Losers:

• Lithium Producers (e.g., Albemarle (NYSE: ALB), Livent (NYSE: LTHM), SQM (NYSE: SQM)): While the demand for lithium in electric vehicle batteries is projected to grow exponentially, a significant reduction in demand from the grease sector could temper overall market growth and put downward pressure on prices for certain lithium compounds, specifically lithium hydroxide used in greases. While the impact might be marginal compared to battery demand, it could still affect their diversification strategies and pricing power in specific segments.
• Traditional Lithium Grease Manufacturers: Companies heavily invested in and reliant on lithium-based grease production, particularly those slow to adapt to new technologies, may face challenges. They could experience higher raw material costs, supply chain disruptions, and loss of market share to competitors offering lithium-free alternatives. This could necessitate costly retooling or reformulation efforts to remain competitive.
• Companies with Limited R&D in Alternative Thickeners: Those who have not invested in developing non-lithium alternatives may find themselves at a disadvantage, struggling to meet evolving market demands and regulatory expectations.

The shift towards lithium-free technology highlights a broader trend where companies are increasingly seeking to de-risk their supply chains and embrace more sustainable material sourcing, impacting the financial performance and strategic direction of players across the industrial chemicals and raw materials sectors.

Broader Implications: A Catalyst for Industry-Wide Transformation

Lubrizol's introduction of HybriCal™ extends far beyond a simple product launch; it represents a significant catalyst for industry-wide transformation, fitting squarely into broader trends emphasizing sustainability, supply chain resilience, and technological innovation. The industrial grease market, historically reliant on a single dominant raw material, is now poised for a diversification that could redefine its operational and strategic landscape.

This event directly aligns with global efforts to reduce dependence on critical raw materials prone to geopolitical risks and price volatility. As the demand for lithium from the electric vehicle (EV) battery sector skyrockets, creating fierce competition for resources, the grease industry has been compelled to seek alternatives. HybriCal™ provides a robust solution, allowing the industrial sector to mitigate its exposure to the "lithium crunch" and secure its supply chains. This move by Lubrizol is likely to ripple through the entire industrial lubricants market, spurring competitors to accelerate their own research and development into alternative thickener technologies. This increased innovation will foster a more competitive and dynamic market, ultimately benefiting end-users with a wider array of specialized and sustainable lubrication solutions.

Regulatory bodies, particularly in regions like Europe, are increasingly scrutinizing the environmental and health impacts of industrial chemicals. The provisional classification of lithium hydroxide as a Category 1A reproductive toxin by the ECHA underscores the growing pressure on industries to adopt safer alternatives. HybriCal™ preemptively addresses these concerns, offering a "future-proof" solution that aligns with stricter environmental, social, and governance (ESG) criteria. This proactive approach by Lubrizol could set a new benchmark for regulatory compliance and responsible product development within the chemical industry. Historically, similar shifts have occurred in other industries when a dominant, yet problematic, raw material faced supply constraints or regulatory hurdles. For instance, the move away from lead in gasoline or asbestos in construction materials demonstrates how technological innovation, driven by market pressures and regulatory imperatives, can fundamentally alter industrial practices and commodity demands. HybriCal™ could mark the beginning of a similar paradigm shift for industrial greases, leading to a more diversified and sustainable future for the entire sector.

The Road Ahead: Navigating a New Era for Industrial Greases

The unveiling of HybriCal™ ushers in a new era for industrial greases, presenting both short-term adjustments and long-term strategic pivots for market participants. In the short term, we can anticipate a period of evaluation and adoption. Grease manufacturers will likely begin testing and validating HybriCal™ formulations, gradually integrating them into their product portfolios. This initial phase will focus on ensuring seamless performance transitions and educating end-users about the benefits of lithium-free alternatives. Lubrizol will play a crucial role in supporting this transition through technical assistance and supply chain stability for its new technology. The immediate impact on lithium demand from the grease sector might be modest but will likely grow as adoption scales.

Looking further into the long term, the implications are more transformative. HybriCal™ could establish itself as a new industry standard, significantly reducing the grease market's reliance on lithium. This shift will likely encourage further innovation in other non-lithium thickener technologies, fostering a more diverse and resilient lubricant industry. Market opportunities will emerge for companies specializing in calcium-based raw materials and for those capable of rapidly developing and commercializing new, sustainable lubrication solutions. Conversely, challenges will arise for traditional lithium grease producers who fail to adapt, potentially facing diminishing market share and increased raw material costs. Strategic pivots for existing players will include reallocating R&D budgets towards alternative chemistries, re-evaluating supply chain partnerships, and potentially divesting from lithium-heavy production lines. Potential scenarios range from a gradual, steady transition where lithium-free greases slowly gain market share, to a more accelerated shift driven by further regulatory actions or severe lithium supply shocks. The outcome will largely depend on the pace of adoption, the sustained performance of HybriCal™ in diverse applications, and the evolving dynamics of the broader lithium market.

A New Paradigm: Summarizing the Impact and Future Outlook

Lubrizol's introduction of HybriCal™ lithium-free grease thickener technology marks a significant turning point for the industrial lubrication market, signaling a decisive move away from its historical dependence on lithium. The key takeaway from this event is the industry's proactive response to critical challenges posed by lithium's price volatility, supply chain instability, and emerging regulatory pressures. HybriCal™ not only offers a high-performance, sustainable alternative but also streamlines manufacturing processes, demonstrating that environmental responsibility and operational efficiency can go hand-in-hand.

Moving forward, the market is poised for a dynamic period of innovation and adaptation. While the exponential demand for lithium in electric vehicle batteries will continue to dominate headlines, the lubricant sector's pivot towards alternatives like HybriCal™ will provide a crucial counter-narrative, potentially alleviating some of the upward pressure on lithium prices and fostering greater stability across various industrial applications. This shift underscores a broader trend towards de-risking supply chains and embracing advanced materials science to create more resilient and environmentally sound industrial solutions.

Investors should closely watch the adoption rates of HybriCal™ and similar lithium-free technologies within the industrial grease market. Pay attention to quarterly reports from Lubrizol (NYSE: LZ) for insights into sales and market penetration. Additionally, monitor the financial performance and strategic announcements of major industrial grease manufacturers like SKF (STO: SKF B) and ExxonMobil (NYSE: XOM) Lubricants to gauge their embrace of these new formulations. The long-term trajectory of lithium prices, particularly for industrial-grade compounds, will also be an important indicator. This event is not merely a product launch; it's a foundational shift that will redefine material sourcing and technological innovation in a critical industrial sector for years to come.

This content is intended for informational purposes only and is not financial advice