【Artificial Graphite】 Artificial Graphite Anodes Demand to Exceed 1.6 Million Tons by 2025

1. Global Needle Coke Production Capacity

In 2023, the global needle coke production capacity was 4.848 million tons per year. Among this, China's needle coke production capacity was 3.798 million tons per year, accounting for 78.3% of the global production capacity. The proportion of China's needle coke production capacity in the global capacity has been increasing year by year. Foreign needle coke production capacity remains stable at 1.05 million tons per year. Specifications for Preparing Ultra-High Power Graphite Electrodes with Needle Coke.

Within China's total needle coke production capacity, coal-based needle coke capacity is 1.35 million tons per year, accounting for 35.5%, and oil-based needle coke capacity is 2.448 million tons per year, accounting for 64.5%. Foreign needle coke production capacity is concentrated in the UK, USA, Japan, and South Korea. China's needle coke production capacity is mainly concentrated in Shandong, Liaoning, and Shanxi, together accounting for 73.9%, with Shanxi exclusively producing coal-based needle coke. In 2024, China plans to add 930,000 tons per year of new needle coke production capacity, mainly in Shandong, accounting for 56.9% of the new capacity. Most of the new capacity will be oil-based needle coke, accounting for 54.8%.

2. China's Demand for Needle Coke for Artificial Graphite Anodes

In 2023, the total production of artificial graphite anode materials in China accounted for more than 80% of the graphite anode material production. According to statistics, in 2023, the domestic artificial graphite anode material industry consumed 554,000 tons of needle coke, with domestically produced needle coke accounting for 86.9% and imported needle coke accounting for 13.1%, primarily used for high-end artificial graphite anode materials.

In recent years, thanks to the rapid development of application fields such as new energy vehicles, communication energy storage, power energy storage, and smart wearables, the market for lithium battery anode materials has experienced explosive growth. According to statistics, the shipment volume of lithium battery anode materials in China increased from 149,000 tons in 2017 to 1.762 million tons in 2023, with a compound annual growth rate of 50.9%. Among these, the market share of artificial graphite anode materials has continuously increased, rising from 67.9% in 2017 to 84.5% in 2023. It is estimated that by 2025, the demand for lithium battery anode materials in China will exceed 1.9 million tons, with the demand for artificial graphite anode materials exceeding 1.6 million tons.

Production and Growth Rate of China's Lithium Battery Anode Materials

Production and market share proportion of China's artificial graphite anode materials

As low-sulfur petroleum coke is also used for producing artificial graphite anodes, it is expected that by 2025, nearly half of the artificial graphite anode materials will use low-sulfur petroleum coke as raw material. Based on the calculation that each ton of artificial graphite anode material requires 1.8 to 2.0 tons of needle coke, the demand for needle coke will exceed 1.4 million tons by 2025.

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