By: Professor Dato Dr Ahmad Ibrahim
Almost 85% of the world natural rubber production come from the ASEAN region. Recent years have seen a growing disinterest in rubber farming, especially among big plantations. Labour-scarce producers like Malaysia continue to see decline. Lately, even producers with abundant labour like Indonesia are not spared. In Malaysia, a modest population country, the investment decline is evident. Big plantation companies have lost interest. Only smallholders remain in literally all the producer countries. The future of natural rubber is potentially bright. There are challenges and opportunities, influenced by global market trends, sustainability concern, production economics, and technological advancements.
Low pricing is one major challenge. Much have to do with overproduction and fluctuating global demand. When prices are good, farmers tend to increase planting without proper consideration of the potential glut in supply. Such over reaction to high prices has been cited as a major cause of price depression. Whereas, demand, very much dominated by tyres, does not expand as much.
Competition from synthetic rubber, SR, is another factor. The production of SR from fossil chemicals can be easily adjusted to respond to changing demand and pricing. This is more difficult for NR where harvesting only happens after a number of years of immaturity. On the issue of carbon emission and biodiversity concerns, some markets have erected regulations on rubber farming which affect market access. The EUDR is one example of such ruling.
On the flip side, the concern over carbon emissions has created opportunities for NR. Industries like automotive and medical sectors are increasingly leaning towards sustainable and biodegradable materials, offering NR an edge over SR. In tyres, the shift to a higher content of NR is catalysed by new evidence on bioplastics coming from tyre abrasion. Tyre formulation also favours NR as the use of electric vehicles, EVs, increases.
The rise of electric vehicles (EVs) necessitates a fundamental redesign of tires to improve energy efficiency, safety, and performance. EVs place unique demands on tires due to their weight, torque characteristics, and energy efficiency requirements, driving innovation in tire technology. EVs are heavier than internal combustion engine (ICE) vehicles due to their batteries. This added weight increases rolling resistance and tire wear, requiring durable materials and construction. Reinforced sidewalls, higher load capacity ratings, and innovative compounds that resist deformation under heavy loads.
EVs also deliver instantaneous torque, which can lead to rapid tyre wear. Tyres must handle greater stress during acceleration without compromising lifespan or performance. The design calls for enhanced tread patterns and materials that improve grip while minimizing wear. Minimizing rolling resistance is critical to maximize EV range since tyres contribute significantly to energy loss. Using silica-based compounds to reduce rolling resistance is an option. NR is known for its low rolling resistance character. That is why NR is preferred in aviation tyres.
EVs are quieter than ICE vehicles, making tyre noise more noticeable. Noise-reducing technologies like foam inserts can minimize road noise. Efficient tyre designs can reduce air drag, contributing to overall vehicle energy efficiency. There have been technological innovations for EV tyres. One is the development of smart tyres. This include embedding sensors to monitor tyre pressure, temperature, and wear, maintaining optimal performance. The use of eco-friendly materials like NR to lower the tyre’s carbon footprint and enhance energy efficiency is favoured.
Tyre manufacturers must work closely with EV producers to design tyres that meet specific vehicle requirements. Recycling and repurposing materials from worn-out EV tyres to address sustainability concerns have been a practice. The redesign of tyres for EVs is not merely an adaptation but a significant evolution. By focusing on durability, efficiency, and sustainability, tyre manufacturers can contribute meaningfully to the widespread adoption of EVs.
Many believe improving productivity and quality through better farming techniques can make natural rubber more competitive. Diversification into value-added products and high volume applications is called for to stimulate the non-tyre demand. Examples include NR in roads and NR into biofuel. High volume demand can support prices of NR. All such diversification requires investments in collaborative R&D. Improved NR production economics will no doubt entice back high value investments. Only then can NR shines.
The author is an Associate Fellow at the Ungku Aziz Centre for Development Studies (UAC), Universiti Malaya, and may be reached at uacds@um.edu.my