【Anode Market】"Intense Competition!" Leading Companies Break Through with Multi-Dimensional Strategies

Source: China Securities Journal

As one of the four main materials for lithium batteries, anode materials directly influence the energy density and cycle performance of lithium batteries. Currently, synthetic graphite materials dominate the anode material market. Due to mismatches in supply and demand, competition in the anode material market has become extremely fierce. The market for low-sulfur calcined petroleum coke used in anodes is active, with prices recently surging. With prices of anode materials remaining low, cost reduction and efficiency enhancement have become a consensus in the industry. Anode material producers are actively developing new products while optimizing production processes and improving efficiency to tackle market challenges.

Consensus on Cost Reduction and Efficiency Enhancement

Currently, Chinese companies lead the world in anode material shipments. In 2023, global shipments of anode materials reached 1.8 million tons, with domestic companies accounting for 1.7 million tons, increasing their global market share to 94%. From January to October 2024, domestic shipments reached 1.65 million tons.

Ji Chengwei, chief analyst of electric new materials at GF Securities, stated that anode materials are crucial for enhancing battery fast-charging performance. As the electric vehicle industry continues to electrify, anode material prices are expected to rebound.

In the global mid-to-high-end digital and power battery markets, products from  PUTAILAI occupy a leading position. The company noted that there is currently a phase of supply-demand mismatch in the anode material market, with prices of some products falling below production costs, putting significant operational pressure on related companies.

Shangtai Technology focuses on the R&D, production, and sales of lithium-ion battery anode materials. The company indicated that in the first three quarters of 2024, the anode material market continued to experience intense competition, with a notable "polarization" in capacity utilization among companies—some have underutilized capacities, while leading synthetic graphite manufacturers maintain full production.

Chen Zuochuan, general manager of Kuntian New Energy, remarked, "Currently, the anode material market is experiencing low prices, and overall profitability for companies is under pressure; cost reduction and efficiency enhancement have become a consensus."

Companies Increase R&D Innovation

To achieve cost reduction and efficiency enhancement, companies are focusing on two main areas: new product development and process equipment optimization.

Kuntian New Energy has developed a continuous graphite furnace process that offers lower energy consumption, greater intelligence, shorter production cycles, and better environmental performance compared to traditional processes. Chen believes that in addition to developing new materials, process iteration is also a crucial means to drive the development of the anode material industry.

By using the continuous graphite furnace process, Kuntian has reduced the graphite production cycle to 10-12 days, significantly increased automation levels (reducing labor by over 50%), and cut auxiliary material consumption by 50%, resulting in a 75% reduction in carbon emissions.

Shangtai Technology continuously improves its graphitization process to enhance production efficiency and reduce costs. The company is also developing new products for next-generation power and energy storage batteries, adopting a differentiated strategy to strengthen its competitive edge.

PUTAILAI is responding to industry adjustments by reducing costs and enhancing efficiency. With the gradual application of new process technologies and equipment, the company expects to improve costs in the graphitization stage and enhance profitability. They stated that they will actively seize opportunities to introduce new products to key clients and further optimize their product structure to enhance profitability.

Positive Signals in the Market

Industry insiders believe that the likelihood of continued price declines for anode materials is low, with a focus on maintaining relative stability in the short term. Prices are expected to see some rebound in 2025.

PUTAILAI expressed confidence in achieving a recovery in profitability for its anode material business by 2025, driven by ongoing process improvements, bulk shipments of new products, and the rollout of integrated capacities in Sichuan. From an industry perspective, it is anticipated that the new energy sector will continue to grow rapidly in 2025, with supply-demand relationships gradually restoring to reasonable levels. Currently, downstream customers are placing greater emphasis on the quality and performance of anode materials, which is expected to lead to a price increase for the company's products.

Since 2024, the anode material industry has faced both opportunities and challenges. On one hand, the industry is experiencing intense competition, with synthetic graphite anode material prices at low levels and profit margins narrowing; on the other hand, the rapid development of next-generation power batteries with "fast-charging" and "super-charging" capabilities is accelerating the update of anode material products, while sales in other sectors are expanding.

According to Shangtai Technology, although overall industry profitability is under pressure, there are some positive signals emerging in the market. On one hand, industry concentration has increased, and leading companies are steadily gaining market share. On the other hand, the pace of capacity expansion in the industry has generally slowed, while market demand is steadily growing. Particularly for certain differentiated products, the supply-demand environment has shown significant improvement, and as demand expands, signs of a balance between supply and demand are appearing. These positive factors lay a solid foundation for the future high-quality development of the industry.

Feel free to contact us anytime for more information about the artificial graphite anode market. Our team is dedicated to providing you with in-depth insights and customized assistance based on your needs. Whether you have questions about product specifications, market trends, or pricing, we are here to help.