Zhongke Anode Material Sales Surge as Energy Storage Demand Accelerates

Zhongke

Zhongke anode material sales rose sharply in 2025 as China’s lithium-ion battery sector expanded across new energy vehicles and power storage. Hunan Zhongke Electric sold 363,253t of anode materials during the year, up 62% from 2024.

Zhongke anode material sales were supported by strong downstream demand and higher operating rates. The company’s output increased by 66% to 378,469t, reflecting a rapid scale-up in response to battery market growth.

Zhongke anode material sales also lifted revenue. Revenue from anode materials rose by 60% to 7.99bn yuan, broadly in line with the increase in shipment volumes.

The result shows how anode materials remain one of the key beneficiaries of battery expansion. Demand is no longer driven only by electric vehicles. Grid storage, industrial storage and AI-related power demand are becoming increasingly important.

Capacity Utilisation Tightens as China Battery Demand Expands

Zhongke’s anode material capacity reached 348,683 t/yr in 2025, up 46% from a year earlier. The increase followed equipment and technology upgrades across its production base.

Capacity utilisation rose to 108.6% from 95.7% in 2024. This shows that Zhongke was operating above nameplate capacity as demand outpaced available production capability.

The company is now expanding further. A third-phase project at its Zhaotong site in Yunnan province is under construction and will add 100,000 t/yr of anode material capacity by the end of 2026.

Zhaotong has become a key growth platform. The first phase, with 15,000 t/yr of capacity, started production in April 2020. The second phase, with 100,000 t/yr of capacity, began operations in March 2024.

Zhongke is also planning a 300,000 t/yr anode material complex in Luzhou, Sichuan province. This would further strengthen its position in China’s graphite anode supply chain.

The expansion reflects a broader industry trend. Anode producers are adding capacity to serve battery makers that need reliable supply, stable quality and lower-cost materials for high-volume cell production.

Overseas Expansion Targets Storage and Non-China Customers

Zhongke is also building a 100,000 t/yr anode material plant in Tangier, Morocco. The project targets customers outside China and reflects the growing need for regionalised battery material supply chains.

Morocco offers strategic value because it is close to European markets and has become more attractive for battery-related investment. For Chinese anode producers, overseas capacity can help serve customers facing localisation, trade and supply-chain security requirements.

Energy storage is becoming a major long-term demand driver. Global energy storage battery shipments reached 651.5GWh in 2025, up 76.2% from a year earlier. Chinese companies accounted for 614.7GWh, or 94.4% of global shipments.

EV Tank expects global energy storage battery shipments to exceed 2TWh by 2030. If this forecast materialises, anode material demand will continue rising across China and overseas markets.

Policy is also supporting growth. China is moving new energy storage from mandatory allocation toward a more market-oriented system, including capacity pricing support for independent grid-side storage.

AI data centres are adding another demand layer. Rapid growth in electricity consumption from AI infrastructure is increasing the need for power storage, grid stability and backup capacity.

Europe is also expanding storage under energy security strategies. EU member states installed 27.1GWh of new battery energy storage systems in 2025, up 45% from the previous year.

For Zhongke, this demand mix supports a larger and more international anode strategy. The company is positioning itself to serve China’s dominant battery ecosystem while preparing for overseas demand linked to storage, EVs and grid resilience.

The Metalnomist Commentary

Zhongke’s growth shows that anode materials are moving from an EV-driven market into a broader energy infrastructure market. The next competitive phase will depend on overseas localisation, graphite supply security and the ability to serve storage demand outside China.