China Graphite Cuts Output in 2024 Amid Shifting Anode Material Demand

China Graphite

China Graphite sees output decline as downstream buyers move to synthetic alternatives, reshaping the anode materials landscape.

Drop in Spherical Graphite Output Reflects Market Shift

China Graphite significantly reduced its spherical graphite production in 2024 due to weakened demand and seasonal production halts. The company produced 3,200t of spherical graphite, a steep 63% drop from 8,700t in 2023, citing low winter temperatures and market changes. Meanwhile, concentrate output also fell to 5,200t, down by 8.8% from 57,000t last year.

Sales of spherical graphite halved to 3,089t, while concentrate sales increased to 45,432t, up 25% year-on-year. The shift reflects a broader industry trend, as more battery makers turn to synthetic graphite due to cost efficiencies and stable feedstock supply.

Synthetic Graphite Dominates Battery Market

The battery industry increasingly favors synthetic anode materials over natural graphite. According to EV Tank, synthetic anode materials accounted for 84.4% of China's total battery anode shipments in 2024. Shipments rose to 2.12mn t, up 24% from 2023, underscoring the rising dominance of synthetic options.

Meanwhile, China Graphite’s natural graphite products found greater demand from non-battery sectors like refractories, flame retardants, and graphene. This diversification may offer some relief, but the pressure from synthetic graphite remains a key challenge.

The Metalnomist Commentary

China Graphite’s 2024 results highlight a structural pivot in anode materials.

As synthetic graphite strengthens its market position, natural graphite producers must adapt or risk marginalization in battery supply chains.