Putailai Cuts Anode Output and Sales in 2024 Amid Oversupply and Weak Prices

Putailai

China’s Anode Market Faces Pressure as Capacity Surpasses Demand

Shanghai Putailai New Energy, a major Chinese new material producer, sharply reduced its anode material output and sales in 2024.

The decline reflects intensified price competition and ongoing oversupply in China’s battery materials sector.

Putailai produced 136,707 tons of anode materials in 2024, down 18% from 166,370 tons in 2023.

Sales also dropped by 15%, falling to 132,311 tons from the previous 155,317 tons.

This reduction comes as China's domestic anode demand totaled 1.83 million tons in 2024.

In contrast, the country’s annual production capacity reached 3.5 million tons, with actual output hitting 2.12 million tons.

Investment Delays and Project Cancellations Reflect Market Strain

Putailai postponed the first-phase launch of its Sichuan anode material plant to February 2025.

The facility, with a design capacity of 100,000 tons/year, was delayed due to low prices and funding shortages.

The plant's second phase, also targeting 100,000 tons/year, remains under construction.

Company officials plan to begin operations by the end of 2026, depending on market recovery.

Additionally, Putailai terminated its Swedish anode project in Sundsvall in December 2024.

The cancellation followed the Swedish government’s refusal to approve the project.

With China’s anode capacity significantly exceeding demand, many producers now face financial pressure and delayed expansion plans.