XFH Anode Material Sales Rise as China Battery Demand Expands

Anode Material

XFH anode material sales increased in 2025 as demand from China’s lithium-ion power battery and energy storage battery industries continued to grow. Shanghai XFH Technology sold 83,885t of anode materials during the year, up 22% from 2024.

XFH anode material sales outpaced production growth, showing stronger downstream offtake from battery manufacturers. The company’s anode material output rose by 11% on the year to 83,426t.

XFH anode material sales also lifted revenue. The company’s anode material revenue rose by 21% to 1.7bn yuan, supported by higher shipment volumes into battery supply chains.

The result reflects continued expansion in China’s battery ecosystem. Power battery shipments exceeded 1,000GWh in 2025, up by more than 50% from a year earlier, while energy storage battery shipments rose by 85% to 630GWh.

Suining Complex Expands XFH’s Anode Capacity

XFH increased anode material production capacity to 114,660 t/yr in 2025, up 27% from the previous year. The increase followed the production launch of its 60,000 t/yr complex in Suining, Sichuan province, at the end of 2025.

The new capacity gives XFH more room to serve fast-growing battery demand. Anode materials are a core input for lithium-ion batteries, influencing charging performance, cycle life, safety and energy density.

China’s rapid growth in power batteries and storage batteries is driving expansion across the anode supply chain. Producers are adding capacity to meet demand from electric vehicles, grid storage, industrial storage systems and consumer battery applications.

The Suining project also strengthens XFH’s position in a market where scale, cost control and customer qualification are critical. Larger capacity can improve operating efficiency, but it also requires stable demand to avoid inventory and pricing pressure.

Energy Storage Growth Supports Anode Demand

Energy storage is becoming an increasingly important driver for China anode materials. Storage battery shipments grew faster than power batteries in 2025, rising by 85% from a year earlier.

This matters because energy storage systems require large volumes of battery materials even when they have different performance priorities from electric vehicles. Cost, cycle life, safety and supply reliability are especially important in storage applications.

Power battery demand remains the largest driver. China’s battery shipments above 1,000GWh show the scale of the domestic EV and battery manufacturing base.

For anode producers, the opportunity is large but competitive. Demand growth supports shipments, but capacity expansion across China can still create margin pressure if supply grows faster than customer orders.

XFH’s stronger sales and output show that qualified anode producers remain tied closely to downstream battery expansion. The next challenge will be maintaining utilisation and profitability as China’s battery materials sector continues to scale.

The Metalnomist Commentary

XFH’s growth shows that China’s battery materials chain is still expanding quickly, especially in anodes. However, rising capacity means producers must compete on qualification, cost and customer access, not only shipment growth.

China's XFH Technology Boosts Anode Material Production Amid NEV Industry Growth

Shenzhen XFH Technology, a leading Chinese producer of lithium-ion anode materials, increased its output during the first half of 2024, driven by continued expansion in the downstream new energy vehicle (NEV) sector. The company produced 34,714 tonnes of anode materials between January and June, marking a 3.6% rise from 33,495 tonnes in the same period last year.

Despite this growth, XFH's production capacity remained largely unchanged at 39,539 tonnes per year, a slight decrease from 39,892 tonnes in the previous year. The company did not disclose the reasons behind this minor reduction in capacity.

However, XFH's revenue for the first half of 2024 fell sharply to 706 million yuan ($98.5 million), a 29% decline from 987 million yuan the previous year. This decrease was attributed to lower anode prices, a result of oversupply in the market.

To further expand its production capabilities, XFH is constructing a 60,000 t/yr anode material and graphitization complex in Yong'an city, Fujian province, set to launch by the end of the year. Additionally, the company is developing a larger 140,000 t/yr complex in Suining city, Sichuan province, though the launch date remains undisclosed.

China's NEV production reached 5.914 million units from January to July, up by 29% year-on-year, with sales also rising by 31% to 5.934 million units, according to the China Association of Automobile Manufacturers (CAAM).

China’s XFH to Launch Sichuan Anode Plant by End-2026

China’s XFH

Expanding Capacity to Meet Growing Battery Demand

Shanghai XFH Technology is set to begin operations at its new anode material production plant in Pengxi county, Suining city, Sichuan province, by the end of 2026. The facility will have a designed capacity of 140,000 t/yr for anode material and graphitisation, with construction having started in early 2022. This expansion underscores China’s commitment to strengthening its domestic lithium-ion battery supply chain.

Strong Growth and Strategic Partnerships

In 2024, XFH boosted its anode material capacity to 90,036 t/yr, a 12pc increase from 2023. Sales rose 11pc to 68,851t, while output climbed 13pc to 75,113t over the same period. The company supplies major global battery makers, including LG Energy Solution, Volkswagen, Gotion High-Tech, and BYD. SK On and Panasonic are currently certifying XFH’s products through small-batch trial production, highlighting its ambitions for broader global market penetration.

The Metalnomist Commentary

XFH’s Sichuan project positions the company to meet surging demand for lithium-ion battery materials while reinforcing China’s dominance in the EV supply chain. Its growing client list and steady production gains reflect strong competitiveness in the global anode market. If certification from SK On and Panasonic succeeds, XFH could secure an even stronger foothold in international supply agreements.