A subsidiary of the State-owned energy giant China National Petroleum Corporation (CNPC) has achieved industrial-scale production of a critical material used in solar panels and electric vehicles, marking a significant breakthrough in China's efforts to reduce its reliance on high-tech imports.

The Dushanzi petrochemical plant located in China's Xinjiang Uygur autonomous region produced nearly 60,000 metric tons of polyolefin elastomer (POE) in 2025 using a domestically developed gas-phase polymerization process, the company announced on Monday.

The production signals the first successful industrialization of the technology in China, addressing a long-standing "chokehold" in the supply chain for strategic emerging industries.

Often referred to as "industrial gold", POE is a high-performance material that combines the processability of plastic with the high elasticity of rubber. It is an essential component in the manufacturing of photovoltaic (PV) modules, lightweight automotive parts and high-end packaging.

China previously faced high technical barriers and rigorous process controls, leaving the market heavily dependent on foreign suppliers, with import dependency for POE remaining as high as 95 percent through the first three quarters of 2025.

With the technology now verified, CNPC is accelerating the formation of industrial clusters. Several other POE projects are currently under construction, with the company’s total annual capacity expected to exceed 300,000 tons by the end of 2026, it said.