【Negative Electrode Material】Market Confidence Gradually Recovering

The destocking efforts of negative electrode material manufacturers are gradually showing results. As we enter July, some negative electrode material manufacturers have resumed production and engaged in limited stocking. Refer to relevant specifications of graphitized petroleum coke prodcts. To get the Major players in the negative electrode material industry have indicated that overall inventory levels are moving towards normalcy, and the negative electrode material market is showing signs of recovery.

In 2022, the global shipment of negative electrode materials reached 1.556 million tons, a year-on-year increase of 71.9%. China's shipment of negative electrode materials saw an impressive year-on-year growth of 84.0%, reaching 1.433 million tons, achieving a historical high in growth rate.

The proportion of China's enterprise shipment of negative electrode materials on a global scale continues to rise and has already surpassed 90% in 2022. Looking ahead, it is projected that driven by the demand for downstream lithium-ion batteries, the global shipment of negative electrode materials will reach 3.317 million tons in 2025 and 8.634 million tons in 2030, with over 90% being produced by Chinese enterprises. 

The issuance of various new energy vehicle subsidies at local levels has led to a sustained increase in downstream demand. These subsidies have to some extent stimulated the recovery of the automobile market. Additionally, policies promoting new energy vehicles in rural areas are expected to boost consumer confidence, stimulate automobile consumption growth, and create a peak season for new energy vehicles around October. It is anticipated that the price of negative electrode materials will also experience a slight upward trend, driven by market demand.

Furthermore, there has been a recent uptick in the prices of synthetic graphite. Graphitization prices have decreased from a peak of 28,000 CNY/ton to around 10,000 CNY/ton, and it is unlikely to see a further downward trend in the long run. Raw materials, such as needle coke, have seen price increases of 300 CNY/ton for green needle coke and 500 CNY/ton for calcined needle coke.

The production capacity of negative electrode materials in the first half of this year is approximately 500,000 tons. In the short term, there is still a severe overcapacity situation, forcing enterprises to focus on niche markets to stand out.

Ningde Times (CATL) has deepened cooperation in the battery sector with shipyards, aircraft manufacturers, and automotive enterprises. Other battery enterprises are also increasing their investments, and the future of China's new energy sector will witness not only the transformation of the automotive industry but also other industries accelerating towards electrification. In the long run, the demand for negative electrode materials remains positive. Contact us to learn more about the negative electrode material industry.