The negative electrode material is one of the core materials of lithium-ion batteries. During the charging and discharging process of lithium batteries, the negative electrode serves as a carrier, responsible for storing and releasing lithium ions and enabling the flow of electric current from... The external circuit passes through. The cost of negative electrode materials accounts for 5% to 15% of the manufacturing cost of lithium batteries, and for ternary cells, the cost of negative electrode materials accounts for approximately 7%.

New types of negative electrode materials include silicon-based anodes and hard carbon. Silicon-based anodes paired with high-nickel ternary cathode materials are poised to become the future development trend for high-end, long-range lithium batteries.

1) The main advantages of silicon-based anode materials include their ultra-high theoretical specific capacity (4200 mAh/g), low lithium extraction/insertion potential (0.3 V–0.5 V), abundant silicon resources, and low cost. Their major drawbacks, however, are low electrical conductivity and a tendency toward significant volume expansion. To address these shortcomings, current research primarily focuses on optimizing material performance through carbon doping and modification techniques, such as silicon-oxygen composites and silicon-carbon composites. In addition to optimizing material properties, researchers are also exploring pathways for optimizing battery system design.

2) Hard carbon boasts a high reversible specific capacity (500–700 mAh/g) and exhibits excellent low-temperature rate performance as well as outstanding electrolyte compatibility, making it one of the most promising anode materials.

1. Introduction to Lithium-Ion Battery Anode Materials and Industry Landscape

1.1 One of the four major materials for lithium-ion batteries: negative electrode material

The negative electrode material is one of the four core materials of lithium-ion batteries. The negative electrode of a lithium battery is primarily made by mixing negative electrode active materials—carbon-based or non-carbon-based materials—with binders and additives, then coating the mixture onto both sides of a copper foil. Afterward, it undergoes processes such as drying and rolling to complete the fabrication. During the charging and discharging of a lithium battery, under the influence of the electrode voltage, lithium ions from the positive electrode undergo... In “embedded” and “disembedded” electrochemical reactions, the negative electrode serves as a carrier, responsible for storing and releasing lithium ions and enabling current to flow through the external circuit.

1.2 Classification of Negative Electrode Materials and the Industry Chain

Lithium-ion battery anodes are mainly divided into two major categories: carbon-based materials and non-carbon-based materials. Artificial graphite and natural graphite are... Currently, the two most mainstream graphite-based carbon materials used as negative electrodes—composite graphite and mesophase carbon microbeads—are manufactured through doping modification and compound processing. Amorphous carbon and carbon nanomaterials such as graphene also belong to the category of carbon-based negative electrodes. Non-carbon materials include silicon-based, titanium-based, tin-based, nitride, and metallic lithium materials. These novel negative electrodes are currently still in the research and development or small-scale production stages and have not yet been commercialized.

1.3 Comparison of Core Indicators for Negative-Electrode Materials

The negative electrode material directly affects key performance indicators of lithium batteries, including capacity, energy density, charging efficiency, cycle life, and safety. Natural graphite and synthetic graphite are low in cost and... With well-developed production technologies and supporting facilities, graphite-based materials exhibit high stability and currently dominate the negative electrode market. However, since both natural graphite and synthetic graphite have already reached the theoretical capacity limits of their materials, high-capacity novel negative electrode materials—primarily based on silicon—are emerging as the key focus of current research and development efforts.

1.4 Competitive Landscape of Negative-Electrode Materials: Leading enterprises are taking the lead in deploying new types of negative-electrode materials, while second-tier companies are seeing their market shares increase.

The lithium-ion battery anode industry features high market concentration, with leading companies taking the lead in researching and producing new types of anode materials; the second-tier players... The manufacturer specializes in artificial graphite anodes, and its market share among enterprises has been steadily increasing. The market share of China’s leading anode material companies is relatively concentrated, with CR3 and CR5 reaching 45% and 65%, respectively. Leading anode manufacturers—Betray, Suggs Co., Ltd., and Pute Lai—are taking the lead in the new anode materials sector, leveraging their strengths in R&D and production.

1.5 Downstream Customers of Negative Electrode Material Enterprises

Driven by the demand for power batteries in new-energy vehicles, energy-storage batteries, and consumer batteries, battery companies are experiencing strong demand for negative electrode materials. Leading domestic negative-electrode manufacturers and... High-quality battery manufacturers both domestically and internationally are collaborating closely and maintaining deep ties with downstream customers.

1.6 The negative electrode material industry is developing rapidly, with shipments increasing year by year.

The domestic market for negative electrode materials is expanding rapidly, with shipment volumes increasing year after year. According to statistics from Gaogong Lithium Battery, In 2021, China's shipments of negative electrode materials totaled approximately 720,000 tons, representing a year-on-year increase of 94.6%—the highest growth rate in recent years.

2. New Negative Electrode Material Technologies and the Future

2.1 Lithium batteries enter the silicon-based anode era

Downstream demand for lithium batteries is increasing for enhanced performance, including high energy density, long driving range, and fast charging. The ultra-high specific capacity of silicon-based anodes will propel electric vehicles into a new era of extended range. Milestone. Currently, the industry is moving toward a technology system that combines high-nickel cathodes with silicon-based anodes, comprehensively enhancing lithium-ion battery energy density, environmental friendliness, and safety.

2.2 New Anode Materials: Introduction to Silicon-Based Anodes and Their Development Roadmap

The primary advantage of silicon-based anode materials lies in their ultra-high theoretical specific capacity. (4200 mAh/g), low lithium extraction potential (0.3 V–0.5 V), abundant silicon reserves, low cost, and environmental friendliness are among its key features. The low electrical conductivity and tendency for significant volume expansion of silicon materials represent the primary challenges currently faced by silicon-based anode materials.

2.3 Technical Optimization Roadmap for Silicon-Based Anode Materials

By optimizing both material design and battery system components, the performance of silicon-based anodes will be further enhanced and gradually meet industrialization standards. In terms of material optimization, Nanostructuring silicon materials increases the specific surface area of silicon, buffering the pressure generated by the volume expansion of the material and thereby maintaining the integrity of the active material after charging and discharging. At the same time, it shortens the diffusion distance for lithium ions and enhances their migration rate, which in turn improves the rate capability. Surface coating, cavity formation, and alloying are all effective strategies for addressing the issue of silicon’s volumetric expansion. Composite modification of silicon-based anodes enhances silicon’s conductivity and strengthens the mechanical integrity of the material, ensuring structural stability and thus improving cycling stability.

2.4 Preparation Process for Silicon-Based Anode Materials

Silicon-carbon and silicon-oxygen anodes combine the dual material advantages of silicon and carbon, characterized by high gravimetric capacity, high conductivity, low volume expansion, and excellent cycling stability. Silicon materials address... The issue of the upper limit of specific capacity for carbon materials has been addressed. Carbon materials exhibit strong conductivity, and the composite of these two materials significantly enhances the conductivity of silicon-based anodes. During cycling, the volume change of the carbon material remains below 10%, effectively mitigating the drawback of volume expansion inherent in silicon materials and thereby ensuring the structural stability of the electrode and the cycle life of the battery.

2.5 Negative-electrode companies are accelerating their deployment of silicon-based negative electrodes.

Silicon-based anode materials paired with high-nickel ternary cathode battery systems are becoming the future trend in the development of high-end, long-range lithium batteries. Anode material manufacturers are actively conducting research and development and making strategic arrangements for silicon-based anodes. Advanced anode materials to meet future market demands. Leading negative electrode companies Betray and Suncore both plan to build large-scale silicon-based negative electrode production bases with capacities of tens of thousands of tons.

2.6 Application of Silicon-Based Anode Materials in Tesla’s 4680 Batteries

With the ramp-up of 4680 battery production capacity, demand for silicon-based anodes is expected to surge. At its 2020 Battery Day, Tesla revealed that the company would adopt silicon-based anodes in its 4680 batteries. Taking a one-step approach to improve both performance and cost, Tesla has independently designed the particle composition and coating methods for the electrodes, starting from raw metallurgical silicon itself. Reducing the SiO layer in the anode allows the battery to maintain higher specific power and achieve longer cycle life. Just the particle-coating technology alone can increase vehicle range by 20% and reduce the production cost per kilowatt-hour by 5%.

2.7 New Anode Materials: Properties and Performance of Hard Carbon

Hard carbon refers to non-graphitizable carbon—a class of carbon materials obtained by high-temperature pyrolysis of polymer precursors, typically at: It is prepared by pyrolysis of resins at around 1000℃. As a new type of anode material, hard carbon can achieve a reversible specific capacity of 500–700 mAh/g. Compared to graphite, hard carbon features a larger interlayer spacing and a more abundant pore structure, giving it outstanding low-temperature rate capability and excellent electrolyte compatibility—making it one of the most promising anode materials available.

2.8 Application of Hard Carbon in the Battery Field

With the development of the new-energy vehicle industry, battery manufacturers are continuously exploring negative electrode systems. Japan’s Hitachi and... GS Yuasa and South Korea’s LG have both adopted hard carbon materials as the negative electrode material for power batteries, used in EVs and HEVs. Domestic battery material manufacturers are also actively developing and producing small-scale batches of certain hard carbon products.

3. Current Status and Development Trends of the Graphite Anode Material Industry

3.1 Price Trends of Negative-Electrode Materials

Affected by factors such as rising upstream raw material prices, the dual-control policy on energy consumption, and restrictions on graphitization capacity, since... Starting from the first quarter of 2021, prices for both natural graphite and synthetic graphite anode materials have risen rapidly. Anode materials made from natural graphite—ranging from low-, mid-, to high-end—have all experienced price increases to varying degrees. The price of low-end natural graphite anode material rose from 16,500 yuan per ton to 27,000 yuan per ton, representing an increase of 63.64%; meanwhile, the price of low-end synthetic graphite climbed from 21,000 yuan per ton to 40,000 yuan per ton, with a surge of as much as 90.48%.

3.2 Shipment volume of synthetic graphite increased significantly.

Currently, the negative electrode material market continues to maintain a product structure in which synthetic graphite remains dominant, with natural graphite serving as a supplementary component. In 2021, China's shipments of synthetic graphite totaled 605,000 tons, an increase of over 100% year-on-year, accounting for 84% of total shipments. Natural graphite shipments reached 101,000 tons, up 73.8% year-on-year, representing 14% of the total. Shipments of other negative electrode materials amounted to 14,000 tons.

3.3 The cost of synthetic graphite is significantly influenced by the graphitization processing fee.

Among the costs of natural graphite, direct materials account for the largest share. According to Xiangfenghua’s prospectus, From 2017 to 2019, these two components accounted for approximately 80%. Among the costs of synthetic graphite, graphitization processing and direct materials made up a significant share. According to information disclosed by Xiangfenghua, the combined share of these two items exceeded 90% from 2017 to 2019.

3.4 The raw material for synthetic graphite is primarily coke-based.

The upstream raw material for natural graphite is natural flake graphite. Natural flake graphite is a single-crystal material whose crystals have a flaky appearance; it is obtained from graphite ore after flotation. The upstream raw materials for synthetic graphite include coke types (coal-based needle coke, petroleum-based needle coke, and petroleum coke) and pitch. Needle coke has a silvery-gray appearance and exhibits a metallic luster. Porous solids with distinct flow textures in their structure, needle coke can be classified into two types based on the raw materials used: oil-based needle coke (raw material: petroleum coke slurry) and coal-based needle coke (raw material: coal tar pitch). Petroleum coke is a black solid carbonaceous material produced by coking petroleum vacuum residue in a coking unit at temperatures ranging from 500 to 550°C. It is an amorphous carbon substance. Asphalt is used as a binder.

3.5 Fluctuations in upstream raw material prices for synthetic graphite are severe.

The price of natural flake graphite, the upstream raw material for natural graphite, continues to rise. Flake graphite is primarily found in Jixi and Luobei in Northeast China, as well as in Shandong Province. The natural graphite in the Northeast region... Flake graphite (natural graphite 195) has now risen to around 3,800 yuan per ton, representing a year-on-year increase of 72.73%. In the Shandong region, the year-on-year increase also reached 35.71%. Since the raw materials for synthetic graphite vary, there are significant price differences among coke types, making raw material cost control a crucial factor. Currently, the prices of oil-based and coal-based needle coke have both climbed above 11,000 yuan per ton, while petroleum coke has risen to over 4,800 yuan per ton. It is expected that, driven by growing downstream demand, the prices of these raw coke materials will continue to trend upward in the future.

3.6 Graphitization is the primary process difference.

Natural graphite undergoes processes including crushing, spheroidization, grading, and purification. It is produced by processing flake graphite into spherical graphite and then modifying it to obtain natural graphite. The processing steps for synthetic graphite mainly include graphitization of raw materials, crushing, granulation, and carbonization. Among these steps, graphitization is the most critical and accounts for the largest share of costs. In the granulation stage, secondary granulation technology presents high technical barriers, which can affect product performance and increase costs to some extent.

3.7 Factors Affecting Graphitization

Due to the rapid growth in demand for synthetic graphite, reduced graphite production in some regions caused by power restrictions, and rising electricity costs driving up graphite processing fees, both upstream and downstream pressures are mounting. The shortage of graphitization capacity and the rising processing fees have become the core bottleneck hindering the release of negative electrode material production capacity.

3.8 Cost Breakdown of Artificial Graphite Anode Materials

The cost of synthetic graphite was broken down using financial data from Shangtai Technology, primarily because the company’s anode materials are entirely synthetic graphite, and the graphite processing stage is outsourced on a large scale. Extremely small in size, it facilitates a clear understanding of the cost structure of the integrated artificial graphite project. The company’s unit electricity costs have been declining year by year, primarily due to lower electricity prices in Shanxi Province. In Q2 2019, Phase I of the project in Xiyang, Shanxi, began production, further compounded by the rapid expansion of production scale. The raw materials for the company’s negative electrode materials include: ordinary petroleum coke, needle coke, and low-sulfur calcined petroleum coke.

4. The negative electrode material market has vast potential, and downstream consumer demand continues to expand.

4.1 Market Potential of New Energy Vehicles

Global production of new-energy vehicles has surged, further opening up room for growth. In 2021, global production of new-energy vehicles reached 6.25 million units, representing a substantial year-on-year increase of 112%. Looking ahead to 2022, with continued momentum in the domestic and European markets and a significant boost in the U.S. market, global sales of new-energy vehicles are expected to exceed 10 million units in 2022. By 2025, this figure could surpass 24 million units.

4.2 Market Potential of Power Batteries

The global power battery industry continues to maintain a rapid growth trend. In 2021, the global installed capacity of power batteries totaled 296.8 GWh, representing a year-on-year increase of over 121.8%. China’s power battery industry is experiencing robust growth. According to data from the China Automotive Power Battery Industry Innovation Alliance, in 2021, China’s cumulative installed capacity of power batteries reached 154.5 GWh, up 142.8% from the previous year. It is projected that by 2025, the installed capacity of power batteries will reach 655.74 GWh, with a compound annual growth rate as high as 43.5%.

4.3 Market Potential for Lithium-Battery Energy Storage

As global electricity consumption rises, the market potential for energy storage will further expand. In 2021, the global lithium-ion battery energy storage market reached a size of 66.30 GWh. We forecast that by 2025, demand for lithium-ion batteries used in energy storage will climb to 254.70 GWh, with a compound annual growth rate expected to exceed 40%. The rapid expansion of China’s lithium-ion battery industry and the increasing share of new energy sources in power generation have created an ideal environment for lithium-ion battery-based energy storage. However, the development of upstream lithium carbonate resources has lagged behind, leading to a sharp surge in lithium carbonate prices and driving up the cost of lithium-ion batteries once again, thereby somewhat slowing down domestic demand for energy storage. Given the mandatory requirements for energy storage in new energy power stations and other applications, we believe that China’s energy storage market will maintain rapid growth over the coming years. According to data from CNESA, China’s new energy storage capacity reached 2.40 GW in 2021, equivalent to approximately 5.80 GWh in terms of storage capacity. By 2025, China’s installed capacity of lithium-ion battery-based energy storage is expected to surpass 55 GWh.

4.4 Market Potential of Consumer Batteries

The overall demand in the consumer lithium-ion battery market continues to grow at a modest pace. In recent years, emerging consumer electronic products that are lightweight and compact—such as smart wristbands and Bluetooth headphones—have become increasingly popular. New growth drivers are needed. According to Bloomberg data, global shipments of lithium batteries for consumer markets (covering digital devices, power tools, small-power applications, and more) reached 84.0 GWh in 2021, representing a year-on-year increase of 20%.

5. Analysis of Key Enterprises

5.1 Betray

The company is dedicated to the research, development, production, and manufacturing of anode materials for lithium-ion batteries, cathode materials, and graphene materials. Its core anode products include natural graphite and synthetic graphite. Graphite, mesophase carbon microspheres, silicon-based composites, and others. The company’s seed business, “Graphene Materials,” is currently still in the nurturing stage. The company will continue to refine its graphene industry layout, leveraging its technological and resource advantages to build the graphene industry into a thermal management materials enterprise that focuses primarily on carbon-based heat-dissipating materials and integrates production, R&D, and sales.

5.2 Shanshan Shares

The company’s core negative electrode products include natural graphite, synthetic graphite, mesophase carbon microspheres, and composite graphite. In 2021, sales exceeded 100,000 tons, representing a year-on-year increase of 71%. As of the end of 2021, the company’s finished negative-electrode material production capacity reached 120,000 tons, with graphitization capacity at 42,000 tons. According to data from Xinlin Lithium Battery, the company ranks first globally in shipments of synthetic graphite. Meanwhile, the company’s fast-charging products are rapidly scaling up, with their shipment share rising to approximately 50%. The company’s silicon-based negative-electrode products have been the first to achieve large-scale market application, with sales reaching the hundred-ton level in both consumer electronics and power tools sectors. In the power battery sector, these products have already passed customer certification and have been integrated into vehicle models; future sales are expected to see substantial growth.

5.3 Putailai

The company’s core negative electrode products include synthetic graphite and composite graphite. The company is comprehensively accelerating its integrated capacity deployment for negative electrode materials and coated separators. As of… By the end of 2021, the company’s annual effective production capacity had reached over 150,000 tons, including 110,000 tons of graphitization processing capacity and 100,000 tons of carbonization processing capacity. On the other hand, the company is accelerating the integrated development of its coated separator business, further enhancing the synergistic effects among the businesses of base separator films, coating processing, coating materials, binders, and coating equipment.

5.4 Zhongke Electric

The company’s core negative-electrode products include synthetic graphite and natural graphite. The company boasts strong R&D capabilities and engineering application expertise in the lithium-ion battery negative-electrode field, particularly in graphite. Our powder processing technology, heat treatment processes, and graphite composite technologies remain industry-leading. We possess integrated capabilities for the design, construction, and operation of complete equipment and entire production lines for negative electrode materials. Meanwhile, the negative electrode material production line at our Guizhou production base—designed and built entirely by our company—is among the most highly automated lines in the industry.

5.5 Xiangfenghua

The company’s core negative electrode products include synthetic graphite, natural graphite, and composite graphite. The company boasts a comprehensive product lineup and has consistently adhered to a technology strategy that equally emphasizes both synthetic and natural graphite. Technical roadmap. In addition, the company’s R&D efforts in areas such as high energy density, low expansion, and long cycle life have received high recognition from leading downstream lithium-ion battery manufacturers. The company boasts a strong core team. The company’s key management team all possess extensive experience in lithium-battery industry management and R&D, demonstrating a keen sensitivity and forward-looking insight into industry market trends and product technology development directions.

5.6 Shangtai Technology

The company’s core negative electrode products include synthetic graphite, diamond carbon sources, and graphitized coke. The company In 2017, the company entered the field of negative electrode material production and has been actively exploring synthetic graphite negative electrode materials that strike a better balance in terms of specific capacity, compaction density, and rate capability. At the same time, the company has been improving its equipment and processes to enhance the quality of existing products and boost production efficiency. The company enjoys cost advantages stemming from its integrated production model. All stages of the company’s negative electrode material production are carried out in-house, with very little reliance on outsourced processing services, thereby minimizing the leakage of gross profit margins. Moreover, since all production processes are located within the same manufacturing base, the company can improve production efficiency, reduce transportation costs, and lower overall production expenses.

5.7 Sotong Development

The company’s main product is pre-baked anodes. In May 2022, the company acquired 94.98% of Xinyuan Shares by issuing shares and paying cash. Xinyuan Shares’ main products include synthetic graphite anode materials, and the company also provides contract manufacturing services such as graphitization and integrated processing. Through the acquisition of Xinyuan Shares, the company has entered the anode material industry. The company enjoys a cost advantage in raw materials. In 2021, the company’s procurement volume of petroleum coke reached 3 million tons, giving it strong bargaining power at the procurement end and enabling it to leverage global sourcing advantages.

The future The company’s planned capacity for negative electrode materials exceeds 300,000 tons, and its procurement volume is set to increase significantly. The company will pursue a dual-engine development strategy—combining pre-baked anodes with lithium-ion battery negative electrodes—and become a leading manufacturer of advanced carbon materials. Both the graphite negative electrodes produced by Xinyuan Shares and the pre-baked anodes developed by Sotong Development are carbon-based materials that share similarities and connections in terms of raw materials, production equipment, and manufacturing processes, enabling them to engage in positive synergy and achieve mutual growth.

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