China Graphite Spherical Graphite Output Falls as Natural Anode Demand Weakens

China Graphite Group

China Graphite spherical graphite output fell in 2025 as weak demand from the natural graphite anode material sector and existing inventories pressured production. The Hong Kong-listed natural graphite producer produced 2,300t of spherical graphite during the year, down 28% from 2024.

The decline reflects a broader shift in China’s anode materials market. Battery producers are still expanding overall anode consumption, but natural graphite is losing share to artificial graphite because of performance and price competition.

China Graphite spherical graphite output weakness shows that battery material growth does not benefit all feedstock routes equally. Natural graphite remains important, but artificial anode materials are gaining ground because they offer stronger cycling life and rate performance for many lithium-ion battery applications.

Spherical graphite sales also fell in 2025, although less sharply than production. China Graphite sold 5,815t of spherical graphite, down 6.9% from a year earlier, suggesting the company partly relied on existing inventory to meet demand.

Artificial Graphite Competition Pressures Natural Anode Feedstock

China’s anode material shipments rose strongly in 2025, reaching 2.9mn t, up 39% from a year earlier. However, natural graphite anode materials moved in the opposite direction.

Natural graphite anode shipments fell to 210,000t in 2025, down 19% from the previous year. Their share of China’s total anode material shipments dropped to 7.2%, showing that natural graphite is becoming a smaller part of the domestic anode mix.

This matters directly for spherical graphite producers. Spherical graphite is a key processed feedstock for natural graphite anode materials. When natural anode production slows, spherical graphite demand weakens quickly.

China Graphite attributed the decline to price competition and lower output of natural graphite anode materials. The company also pointed to the shorter cycling life and weaker rate performance of natural graphite compared with artificial anode materials.

Artificial graphite has become dominant in China’s battery supply chain because many battery makers prioritise consistency, fast charging performance and long cycle life. These factors are especially important for electric vehicles and energy storage systems.

The result is a margin squeeze for natural graphite processors. Even when total battery demand grows, spherical graphite producers must compete against artificial graphite suppliers that are more closely aligned with mainstream cell performance requirements.

Flake Graphite Output Rises Despite Spherical Graphite Weakness

China Graphite’s upstream natural graphite flake business performed better than its spherical graphite segment. The company produced 57,600t of natural graphite flake in 2025, up 10.8% from a year earlier.

The increase was supported by equipment upgrades, showing that China Graphite improved mining or processing efficiency even as downstream spherical graphite demand weakened. Flake graphite sales also edged higher by 1.3% to 46,020t.

This creates a mixed operating picture. Upstream flake output increased, but downstream spherical graphite production fell sharply. The gap suggests that the company may need to manage feedstock allocation carefully if natural anode demand remains weak.

Natural graphite still has strategic value. It can support lower-cost anode production and remains important for battery supply-chain diversification. However, its competitiveness depends on purification, coating, consistency, performance and customer qualification.

For China Graphite, the next challenge is not only producing more flake graphite. It must defend its position in higher-value downstream graphite products as the anode market shifts toward artificial materials and more demanding battery specifications.

The company’s results also highlight a wider issue for natural graphite markets. Supply growth alone is not enough. Producers need downstream demand from qualified anode makers, battery customers and applications where natural graphite retains a cost or performance advantage.

The Metalnomist Commentary

China Graphite’s results show that battery demand growth is becoming more selective across the graphite value chain. Natural graphite suppliers must improve processing quality and downstream integration if they want to compete against artificial graphite in high-performance batteries.

Dongdao Anode Production Expansion Adds More Capacity to China’s Battery Materials Chain

Dongdao Anode Production

Dongdao anode production expansion in Guangdong province shows that China continues to build scale across graphite and next-generation battery materials. Guangdong Dongdao New Material has started construction of two anode processing lines and one silicon-carbon anode line in Zhanjiang.

The two new processing lines will each have 10,000 t/yr of capacity. One line will produce synthetic graphite anode materials, while the other will produce natural graphite anode materials. The silicon-carbon anode line will have 500 t/yr of capacity, giving Dongdao a foothold in higher-performance battery material development.

Dongdao anode production growth matters because anode materials remain a core part of the lithium-ion battery value chain. China already dominates graphite processing, and the company’s latest investment reinforces the country’s ability to expand both conventional and advanced anode supply.

Graphite Anode Capacity Continues to Scale in China

Dongdao already operates 100,000 t/yr of natural graphite anode capacity and 100,000 t/yr of synthetic anode capacity. The new Zhanjiang lines will add more processing flexibility across both major graphite anode routes.

The company is also building much larger synthetic anode projects elsewhere in China. These include 300,000 t/yr of capacity in Leizhou, Guangdong, and 150,000 t/yr in Yilong, Guizhou. This shows that synthetic graphite remains a major investment focus as battery producers seek consistent performance, controlled quality, and scalable supply.

Dongdao’s subsidiary, Zhanjiang Juxin New Energy, also plans to build a 20,000 t/yr spherical graphite facility in Zhanjiang. A commissioning date has not yet been set, but the project would add another processing step that supports natural graphite use in battery anodes.

Silicon-Carbon Line Signals Next-Generation Battery Focus

The planned 500 t/yr silicon-carbon anode line is smaller than the graphite lines, but it carries strategic importance. Silicon-carbon anodes can improve battery energy density and performance, although commercial scaling remains more technically demanding than conventional graphite.

Dongdao’s decision to build this line alongside graphite processing capacity suggests a dual strategy. The company is expanding mainstream anode capacity while preparing for future demand from higher-performance battery chemistries.

All three Zhanjiang lines are scheduled to start operations in December 2027. By then, battery supply chains may be more focused on cost reduction, fast charging, energy density, and material efficiency. Producers with both graphite scale and silicon-carbon development capacity could be better positioned for that transition.

The Metalnomist Commentary

Dongdao’s expansion shows that China is not slowing its grip on the anode materials chain. The strategic issue for global battery supply chains is no longer only graphite availability, but who controls processing scale, qualification, and next-generation material development.

BTR anode materials sales surge on EV and storage demand

BTR

BTR anode materials sales rose sharply in the first half of 2025. BTR anode materials sales exceeded 260,000t, rising about 30% year on year. This momentum underscores BTR anode materials sales strength across EVs and energy storage markets.

BTR expanded synthetic anode output to over 220,000t. That marked a 46% annual increase from strong downstream demand. Therefore, product mix shifted toward higher-spec synthetic grades.

Revenue from anode materials reached Yn6.28bn in January–June. That was up 21% from last year. As a result, operating scale improved alongside volume growth.

BTR lifted total anode capacity to 575,000 t/yr. That was up 16% from 495,000 t/yr. Hence, capacity now better supports large OEM contracts.

Indonesia ramp anchors overseas expansion

BTR launched its first overseas anode plant in Sulawesi. Phase one added 80,000 t/yr toward a 160,000 t/yr nameplate. Consequently, the company diversified manufacturing beyond China.

China’s graphite flake exports to Indonesia surged in 2025. Shipments reached 24,163t for January–July. This reflected BTR’s feedstock routing to the Sulawesi facility.

Meanwhile, total Chinese flake exports hit 61,281t. That nearly doubled year on year. Therefore, regional supply chains intensified around Indonesia.

Outlook for EV batteries and energy storage

BTR anode materials sales should track NEV and storage growth. Policy support and cost deflation remain key drivers. Moreover, synthetic graphite gains share in high-performance cells.

Energy storage orders are expanding rapidly. This supports LFP-heavy deployments with stable margins. However, feedstock and power costs require close management.

Global OEM qualification pipelines are widening. As a result, multi-site supply will become a competitive advantage. BTR’s Indonesia base strengthens that position.

The Metalnomist Commentary

BTR is scaling at the right nodes of the value chain. Overseas anode capacity plus captive flake flows reduce logistics risk and tariffs. Watch synthetic share, power contracts, and OEM long-term awards for margin durability.

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.

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.

China’s Guizhou Kaijin Expands Battery Anode Capacity

Kaijin battery

Expansion Strengthens Position in Lithium-Ion Battery Market

China’s Guizhou Kaijin has expanded its lithium-ion battery anode production capacity to 120,000 tonnes per year. The facility in Tongren city, Guizhou province, began operations in May 2022 with six lines producing 100,000 t/yr. Following upgrades and the installation of two additional lines, trial production for the seventh and eighth lines is set to begin by the end of July.

Kaijin’s sales performance reflects this rapid expansion. Between January and April 2025, the company sold 50,000 tonnes of anode materials, compared with just 10,000 tonnes during the same period in 2023. As a subsidiary of Guangdong Kaijin, one of China’s top five anode producers, the company strengthens its foothold in the global battery supply chain.

NEV Boom Drives Rising Demand for Anode Materials

China’s fast-growing new energy vehicle (NEV) industry is fueling strong demand for lithium-ion battery anode materials. National shipments of anode materials reached 2.12mn tonnes in 2024, up 24% from 2023. This growth aligns with rising NEV production and sales, supported by robust consumer demand and government incentives.

China produced 5.7mn NEVs from January to May 2025, a 45% increase compared with the same period in 2024. Sales also grew by 44% to 5.61mn units. As a result, overall production of power and energy storage batteries rose by 63% year-on-year to 568.1GWh during January-May, according to the China Automotive Battery Innovation Alliance (Cabir).

The Metalnomist Commentary

Guizhou Kaijin’s expansion demonstrates the strategic scaling of China’s battery materials industry in response to surging NEV demand. As global automakers diversify supply chains, Kaijin’s growth reinforces China’s dominance in anode materials. However, international competition and technology shifts, such as LFP adoption, will challenge long-term market positioning.

BTR Expands Anode Material Sales Amid Global EV Demand Surge

BTR

Strong Growth in Anode Segment Offsets Cathode Decline

BTR increased its anode material sales in 2024, driven by growth in lithium-ion batteries and new energy vehicles (NEVs). The Chinese battery material firm sold 437,762 tonnes of anode materials last year, up 21% from 2023. This performance reinforces BTR’s leading role in the global anode material market, a critical segment for EV battery production.

However, revenue from anode sales dropped by 13% year-on-year due to intensified price competition and expanded industry capacity. Despite that, BTR’s anode output rose 20% to 453,535 tonnes, supported by its new 50,000 t/yr plant in Dali, Yunnan province.

Overseas Expansion and Cathode Setbacks

BTR expanded globally in 2024, launching an 80,000 t/yr anode facility in Sulawesi, Indonesia, and beginning construction on another plant in Semarang. It is also building an integrated site in Tangier, Morocco, including both anode and cathode material capacity. Meanwhile, cathode material sales dropped sharply by over 50%, falling to just 19,760 tonnes amid fewer orders and tougher pricing.

As a result, cathode revenue plunged 75% and BTR chose not to increase its cathode capacity, which remains at 63,000 t/yr. The company’s graphite flake revenue also fell significantly, down 67%, due to global oversupply and weak prices.

China’s Dominance in Anode Market Continues

China shipped 2.12mn tonnes of anode materials in 2024, making up 96% of global shipments, according to EV Tank. Synthetic graphite accounted for 84% of the Chinese total, underlining its dominance in high-performance EV battery materials. BTR’s growing output and international expansion position it well to benefit from this trend despite ongoing pricing pressures.

The Metalnomist Commentary

BTR's aggressive expansion in anode materials reflects China’s strategic positioning in the EV battery race. However, the sharp cathode decline shows the market's volatility, highlighting the need for margin resilience amid global oversupply cycles.

Silicon Anode Technology Gears Up for Mass Production

HPQ Silicon

As the electric vehicle (EV) industry continues to expand, the demand for more efficient and sustainable battery technologies is reaching unprecedented levels. Among the leading innovations in this sector is the development of silicon anode materials, which are poised to revolutionize the market currently dominated by traditional lithium-ion batteries with graphite anodes.

HPQ Silicon Advances Toward Commercial Manufacturing

Canada-based HPQ Silicon is at the forefront of this shift, having recently inked an initial agreement to construct a facility in northern Germany for producing silicon-based battery anode materials. This collaboration with a German industrial partner aims to leverage HPQ's proprietary Purevap Quartz Reduction Reactor (QRR) technology. This technology not only manufactures high-purity silicon—the critical feedstock for anode materials—but also incorporates a carbon off-gas capture system to produce green synthetic fuels, thus enhancing the sustainability of the production process.

NanoGraf and Other U.S. Advances

In parallel, U.S.-based NanoGraf has launched Onyx, a silicon oxide anode material that claims cost parity with synthetic graphite while improving battery cell energy density by 30%. Such advancements are not only a testament to the potential of silicon anodes to enhance lithium-ion batteries but also reflect significant strides in reducing production costs and increasing stability.

NanoGraf's expansion includes a new plant in Flint, Michigan, supported by a $60 million grant from the U.S. Department of Energy. This facility is expected to dramatically increase production capacity, aiming to meet the growing demand for silicon anode materials necessary to power up to 1.5 million EVs annually.

Growing Silicon Anode Landscape

The landscape for silicon anode production is also becoming more geographically diverse. Companies like Sila Nanotechnologies and Group14 Technologies are investing heavily in facilities in Moses Lake, Washington, to ensure a steady supply of essential materials like silane gas and silicon-carbon composites. These developments are crucial as they contribute to the overall resilience and sustainability of the supply chain in the battery manufacturing sector.

As these technologies move from pilot scales to full commercial production, the industry faces several challenges, including scaling up production and managing supply chain dynamics. However, the ongoing investments and collaborations signal a robust commitment to overcoming these hurdles, promising a significant shift in the battery technology landscape by 2030.

Global Battery Expansion Set to Propel Anode Material Demand

Battery Anode Materials

NEV Growth and Energy Storage Boom Drive Anode Market Outlook

Rapid growth in the global battery industry is poised to boost long-term demand for anode materials and feedstocks, according to panelists at the 2024 Battery and Anode Summit in Changzhou, Jiangsu province. This demand surge reflects ongoing expansion in new energy vehicles (NEVs), energy storage systems, and consumer electronics.

Battery and Anode Output Set for Major Expansion

Global battery output is expected to reach 1,852GWh in 2025, while anode material production may hit 2.17 million tonnes. By 2028, this figure could exceed 4 million tonnes, according to ICC Sino. China produced 2.12 million tonnes of anode materials in 2024, with domestic demand reaching 1.83 million tonnes. Demand is forecast to rise steadily, reaching 3.4 million tonnes by 2028.

China’s NEV sector continues to lead global momentum, driven by sustained policy support. NEV sales in China rose 36% to 12.87 million units in 2024. Sales are projected to grow to 16 million units in 2025, supported by extended government incentives.

Renewable Energy and Silicon Anodes Add Tailwinds

Energy storage demand is also rising, with major wind and solar infrastructure developments underway in China’s Xinjiang, Gansu, Ningxia, and Inner Mongolia. Dalat county's solar generation saved 680,000 tonnes of coal in 2024 and curbed carbon emissions by 1.65 million tonnes.

Silicon-based anode materials, with energy densities up to 4,000 mAh/g, are seeing significant traction. Shipments are projected to surge from 5,300 tonnes in 2024 to nearly 81,900 tonnes by 2030, according to producer C-One.

 

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.

Hubei STR anode recycling plant will start in March 2026 as China’s battery scrap accelerates

Lithium-Ion Battery

Hubei STR will start the Hubei STR anode recycling plant in March 2026. The project targets 50,000 t/yr of recycled anode materials for lithium-ion batteries. The company began site construction in January 2022. As a result, the facility enters the market as battery recycling volumes rise sharply.

Battery scrap volumes will surge as China’s first NEV wave reaches end-of-life. Lithium-ion batteries usually retire when capacity falls to 80%. The US Advanced Battery Consortium links this threshold to an 8–12 year service life. Therefore, post-2025 retirements should expand the available feedstock for anode material recycling.

China’s EV scale is turning recycling into a supply chain priority

China’s EV scale is making the Hubei STR anode recycling plant strategically timed. China pushed NEV output above one million units in 2018. NEVs reached 40.9% of total auto sales in 2024. Meanwhile, October NEV sales hit 1.72mn units and took 51.6% market share.

Recycling capacity must follow that growth curve. China Association of Automobile Manufacturers forecasts NEV sales near 16mn units in 2025, up from 12.86mn in 2024. China Automotive Engineering Society estimates retired power batteries exceeded 580,000t in 2023. It expects retirements to reach 6mn t by 2030. Consequently, anode recycling becomes a cost, ESG, and security lever for battery makers.

Graphite recovery and copper foil separation define the value capture

Graphite recovery drives much of the anode recycling economics. The lithium-ion battery recycling process starts with dismantling and material separation. Recyclers can recover plastics and the diaphragm from anode-side components. They can also extract aluminium foil from cathode materials.

Graphite recovery then becomes the key upgrade step. Recyclers separate graphite from copper foil in spent anodes. They purify the graphite and sell it back into the battery materials chain. Therefore, the Hubei STR anode recycling plant can support a more circular anode supply. It can also reduce exposure to price swings in battery-grade inputs.

The Metalnomist Commentary

China’s recycling race is shifting from metals recovery to materials performance. Therefore, graphite purity and consistent output will decide who wins long-term contracts. However, recyclers must prove traceability and ESG compliance to unlock premium pricing.

China's BTR Expands Global Footprint with New Anode Material Plant in Indonesia

Chinese battery material producer BTR has inaugurated its first overseas anode material plant in Indonesia, marking a significant step in the company’s global expansion strategy. Located in central Sulawesi, the plant is set to bolster the supply chain for lithium-ion batteries across Indonesia and the broader ASEAN region.

The new facility boasts a total production capacity of 160,000 metric tonnes per year (t/yr) of anode material, with the first phase, launched today, contributing 80,000 t/yr. This initial phase required an investment of $478 million, according to BTR Chairman He Xueqin. "The commencement of this plant will fill a crucial gap in anode material production for lithium-ion batteries, not only in Indonesia but across the ASEAN region, strengthening the entire new energy lithium battery industry chain," He stated.

This Indonesian project is BTR’s first operational venture outside of China, but the company is not stopping there. BTR Mediterranean, a subsidiary, broke ground on a new plant in Tangier, Morocco, on April 8th. This facility, designed to produce 50,000 t/yr of cathode materials, represents another strategic move to expand BTR's influence in the global battery materials market, though its commissioning date remains unannounced.

BTR continues to grow its production capacity within China as well. On June 16th, the company launched the first phase of an anode material plant in Lijiang, Yunnan province, which will eventually have a total capacity of 200,000 t/yr. The initial phase, with a capacity of 50,000 t/yr, began construction in May 2022. Additionally, BTR is on track to start production at another anode material plant in Shanxi province by the end of this year, which will add 40,000 t/yr to its capacity.

In 2023, BTR’s overall production capacity for anode materials reached 477,500 t/yr, a 45.6 percent increase from the previous year. The company produced 376,899 tonnes of anode materials in 2023, up 10.7 percent year-on-year.

Japan-Australia Graphite Anode Supply Chain Targets Battery Security

Graphite

The Japan-Australia graphite anode supply chain is becoming a serious strategic project for battery materials security. Idemitsu, Marubeni, NSC, and Graphinex have agreed to develop a cross-border supply chain for natural graphite anode material. The plan links graphite mining in Queensland with refining and processing in Japan. As a result, the Japan-Australia graphite anode supply chain could reduce reliance on more concentrated supply routes.

This matters because graphite remains one of the most important battery raw materials. Demand continues to rise with electric vehicles and renewable energy storage. Japan has relied heavily on imports for graphite procurement. Therefore, the Japan-Australia graphite anode supply chain directly addresses a critical supply risk.

The industrial structure of the deal is also clear. Idemitsu and Graphinex will handle graphite extraction in Australia. Marubeni and NSC will focus on refining and processing in Japan. Consequently, the project is designed as a full upstream-to-midstream partnership rather than a simple trading agreement.

Natural Graphite Anode Material Is Becoming a Strategic Priority

Natural graphite anode material is now central to battery manufacturing competitiveness. Without secure graphite supply, downstream battery production becomes more vulnerable to trade shocks and export restrictions. That makes source diversification more important than ever. As a result, Japan is moving to secure a more stable anode material base.

China’s role helps explain the urgency. Japan wants alternative import sources as it reduces dependence on the world’s largest graphite producer and exporter. Export controls have made that concentration risk harder to ignore. Therefore, the new partnership reflects both industrial logic and geopolitical caution.

Idemitsu’s earlier investment in Graphinex also shows this strategy did not begin overnight. The companies have already been building ties around Australian graphite mining. This new agreement pushes that relationship into a more integrated supply chain phase. Meanwhile, it strengthens confidence that the project has real strategic intent.

Graphite Anode Plant in Japan Could Deepen Domestic Battery Capacity

The graphite anode plant in Japan is the most important downstream element of the plan. The companies are exploring a Japanese production site and aim to start operations in 2028. That would give Japan more domestic control over an essential battery input. Consequently, the graphite anode plant in Japan could become a meaningful industrial anchor.

The partnership also aligns with the wider Japan-Australia critical minerals agenda. Both countries have been working to deepen cooperation on energy security and supply chains. This project fits that framework well because graphite sits at the core of battery manufacturing. Therefore, the deal supports both national policy and commercial demand.

The broader market significance is clear. Battery supply chains are no longer judged only by cell production capacity. They are increasingly judged by who controls upstream and midstream materials. As a result, the Japan-Australia graphite anode supply chain could become a notable model for allied critical mineral cooperation.

The Metalnomist Commentary

This partnership matters because it targets one of the most overlooked battery bottlenecks: graphite anodes. Japan is not only seeking more raw material. It is trying to secure processing and manufacturing depth as well. If execution stays on track, this project could become an important example of how allied supply chains move beyond dependence and into real industrial coordination.

Sunstone Anode Output Soars in 2024 Amid Surging Lithium-Ion Battery Demand

China Shandong Sunstone

China’s Shandong Sunstone significantly increased its anode output and sales in 2024, driven by booming lithium-ion battery production. The Sunstone anode output rose in both traditional prebaked carbon anodes and synthetic graphite materials used in EV battery supply chains.

Prebaked Carbon Anode and Synthetic Material Output Surge

Sunstone’s production of anode materials jumped to 54,100 tonnes in 2024, marking an 83% increase from 29,600 tonnes in 2023. Corresponding sales rose 66% to 43,800 tonnes. This growth reflects rising demand for lithium-ion batteries, which rely on synthetic graphite and carbon-based anodes.

In addition, Sunstone produced 3.26 million tonnes of prebaked carbon anodes in 2024, a 10% increase from the previous year. Sales for these anodes also rose 11% to 3.32 million tonnes. The company sources over 3 million tonnes of petroleum coke annually to fuel this growing demand.

EV Battery Growth Accelerates Feedstock Consumption

The lithium-ion battery market continues to expand at a rapid pace. Global shipments reached 1,545.1 GWh in 2024, up 29% from 2023. China led the way with 1,214.6 GWh in shipments, marking a 37% year-on-year increase. As a result, firms like Sunstone are scaling up production capacity to keep pace with downstream EV and energy storage demands.

Petroleum coke remains a critical feedstock for anode manufacturing, tying Sunstone’s operations closely to oil refining supply chains. This strategic positioning enables the company to support China's dominant role in global battery exports.

The Metalnomist Commentary

Sunstone’s rapid output expansion reflects the deepening integration between China’s anode manufacturers and the global EV battery market. As demand for graphite-based materials surges, securing raw materials like petroleum coke will become increasingly strategic.

ExxonMobil battery anode graphite deal signals new push into EV batteries

ExxonMobil

The ExxonMobil battery anode graphite deal marks a strategic shift toward advanced battery materials. The company will acquire the US assets and technology of Superior Graphite to gain a foothold in battery anode graphite. As a result, the ExxonMobil battery anode graphite deal aims to convert refining-derived carbon streams into higher value synthetic graphite products.

Synthetic graphite strategy builds on ExxonMobil refining strengths

ExxonMobil battery anode graphite deal execution leans heavily on the group’s refining skills and feedstock access. Synthetic graphite production can use carbon-rich streams from existing oil refineries, rather than rely on traditional mined graphite. Therefore, the company can integrate battery anode graphite manufacturing into current industrial sites with established utilities and logistics.

Producing synthetic graphite is also less labour intensive than conventional mining operations. This shift supports more predictable quality and supply for high performance battery anodes, especially for EV and energy storage systems. Meanwhile, Superior Graphite’s technology portfolio should help accelerate product qualification with cell manufacturers and automotive OEMs.

ExxonMobil expects demand for higher performance batteries and advanced graphite materials to grow significantly. As a result, the company views synthetic graphite as a natural extension of its downstream product chain. However, it still needs to prove that oil-to-anode economics can compete with incumbent graphite suppliers in Asia.

Energy transition focus must still compete for capital

The ExxonMobil battery anode graphite deal fits into a broader energy transition strategy built around familiar skill sets. The company is already investing in carbon capture, hydrogen and low-emission fuels that leverage existing process and project expertise. Therefore, battery anode graphite offers another pathway where ExxonMobil can combine scale, engineering and feedstock advantages.

Yet internal capital allocation remains disciplined and competitive. Management has repeatedly stressed that new technologies, including carbon capture and hydrogen, must compete with core oil and gas projects for investment. Likewise, the ExxonMobil battery anode graphite deal will need to deliver attractive returns against upstream and petrochemical options. This requirement could limit speed of expansion if market conditions or pricing weaken.

In addition, graphite remains a politically sensitive material within global battery supply chains. Western buyers seek alternatives to Chinese-dominated supply, but must balance cost, performance and ESG criteria. If ExxonMobil can demonstrate low emission synthetic graphite at scale, it may win premium contracts from OEMs under pressure to de-risk their anode sourcing.

The Metalnomist Commentary

ExxonMobil’s move into battery anode graphite shows how oil majors now seek value in critical mineral adjacencies rather than pure mining. Success will depend on whether integrated refinery-based synthetic graphite can match Asian competitors on cost and performance. Market participants should watch for offtake deals with cell makers, which will reveal how quickly this new graphite platform gains traction.

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.

Shangtai to Build $154mn Battery Anode Plant in Malaysia

Shangtai Tech

Chinese lithium-ion battery anode manufacturer Shijiazhuang Shangtai has announced plans to establish a production facility in Kedah, Malaysia. The Shenzhen-listed company approved the creation of a wholly-owned subsidiary, Shangtai Technology Malaysia, to oversee the development of the plant, which is projected to cost $154 million and have a production capacity of 50,000 tons per year for battery anode materials.

Construction Timeline and Strategic Expansion

While the site is expected to be completed within 24 months, Shangtai has yet to disclose the start date for construction. This new facility forms part of Shangtai's broader strategy to expand its production capacity and gain a competitive edge in the global battery market.

In the first half of 2024 alone, Shangtai sold 83,800 tons of anode materials, marking a 61% increase compared to the 52,200 tons sold during the same period in 2023. The company is also constructing a 100,000-ton-per-year production plant in Wuji County, Shijiazhuang City, Hebei Province, China, which is set for completion by 2026. Additionally, Shangtai operates a 200,000-ton-per-year complex in Xiyang County, Jinzhong City, Shanxi Province.

Context of Chinese Companies' Global Expansion

The move by Shangtai reflects a larger trend of Chinese companies seeking overseas expansion to mitigate rising geopolitical restrictions, such as the US Inflation Reduction Act and the EU's Critical Raw Material Act. Another key player, BTR, recently launched its first phase of an overseas anode material plant in Indonesia with an 80,000-ton-per-year capacity on August 7. Furthermore, BTR is also developing cathode and anode material plants in Tangier, Morocco, with capacities of 50,000 tons and 60,000 tons per year, respectively.

This strategic push not only strengthens China's position in the global battery material supply chain but also enhances production capabilities to meet growing demand for electric vehicle components and renewable energy storage solutions.

Toyota Tsusho PPESNA Stake Strengthens North American Battery Supply Chain

Toyota Tsusho

Toyota Tsusho PPESNA stake acquisition gives the Japanese trading firm a stronger role in building Toyota Group’s North American battery supply chain. The company acquired a 20% stake in Prime Planet Energy and Solutions’ North American subsidiary, PPESNA.

The Toyota Tsusho PPESNA stake is designed to support stable battery production across procurement, materials, components, production equipment and recycling. The move shows how Japanese industrial groups are deepening control over regional battery supply chains as North American electrification investment expands.

PPESNA was established in September 2025 to improve service and response capabilities for PPES customers and Toyota Group’s battery business in North America. Toyota Tsusho’s investment gives the subsidiary a broader commercial and supply-chain platform.

Toyota Tsusho Targets Battery Procurement and Recycling Integration

Toyota Tsusho said the investment will help develop a supply chain covering equipment procurement, battery materials, components and recycling. This is important because battery production increasingly depends on coordinated sourcing across cathode materials, anode materials, separators, electrolytes, cells, modules and recycling routes.

The company already has exposure to Toyota Battery Manufacturing North Carolina, which can produce 30GWh/yr of batteries at full capacity. That gives Toyota Tsusho a direct link to one of Toyota Group’s key North American battery manufacturing assets.

The Toyota Tsusho PPESNA stake also complements the company’s recycling strategy. Toyota Tsusho has established a joint venture with LG Energy Solution to recycle batteries in North Carolina, giving it another position in the circular battery materials chain.

North America Becomes a Strategic Battery Manufacturing Base

North America is becoming a core region for Japanese battery supply-chain investment. Automakers and trading houses are trying to localise procurement, reduce logistics risk and prepare for tighter regional content requirements.

Toyota Tsusho’s role is especially important because trading companies often connect raw materials, equipment suppliers, manufacturers and recyclers. In battery supply chains, that coordination can reduce bottlenecks and improve long-term production stability.

For Toyota Group, the PPESNA investment supports a more integrated North American platform. It links battery production, upstream procurement and recycling at a time when battery costs, material security and regional manufacturing incentives remain central to electric vehicle competitiveness.

The Metalnomist Commentary

Toyota Tsusho’s PPESNA investment shows that battery competitiveness is moving beyond cell production alone. The real advantage will come from controlling the full supply chain, from equipment and materials procurement to recycling and closed-loop recovery.

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).

Binhai raises anode output as China’s battery demand surges in 1H 2025

Tianjin Binhai Energy

Binhai raises anode output to capture fast-growing EV and storage demand. Binhai raises anode output by 58% to 25,700t in January–June. As a result, Binhai raises anode output and sales to strengthen its position in China’s anode market.

Capacity growth and sales momentum

Tianjin Binhai produced 25,700t of anode materials in the first half. The figure rose 58% from 16,300t a year earlier. Meanwhile, sales reached 23,400t, up 35% year on year. The company operates 40,000 t/yr of capacity today. It acquired Xiangfu New Energy in May 2023. Xiangfu started output in November 2023 and supports Binhai’s growth.

Expansion pipeline and market outlook

Xiangfu is building a 200,000 t/yr anode complex. The first 100,000 t/yr phase targets start-up by end-2025. Therefore, Binhai’s integrated footprint should expand materially. China’s anode demand reached 1.83mn t in 2024. ICC Sino forecasts 2.22mn t in 2025 and 3.4mn t by 2028. This trend aligns with rapid growth in EVs and energy storage.

The Metalnomist Commentary

The step-change in output and sales signals disciplined scaling into a rising market. Watch commissioning risk at Xiangfu and feedstock sourcing as volumes climb. Contract wins with cell makers will determine utilization and pricing power.