Anode Graphitization Processing Fees On The Rise!

Judging by current frontline market conditions, demand for anode materials is showing signs of recovery and improvement. Downstream battery cell manufacturers have demonstrated a significantly increased willingness to build inventory and make purchases, directly driving a steady rise in orders related to anode graphitization. Leading integrated anode manufacturers within the industry-as well as their partner graphitization tolling facilities-are operating at full capacity, maintaining high utilization rates and sustaining full-load production across all lines. At this stage, however, the industry faces constraints stemming from a shortage of high-quality graphitization capacity and volatile, upward-trending prices for upstream and auxiliary raw materials; consequently, overall supply remains tight and under pressure. Product quotations are rising in a tiered fashion: leading enterprises have taken the initiative to raise ex-factory prices, small and medium-sized manufacturers have followed suit, and graphitization tolling fees have risen accordingly, signaling a continued upward trend in overall industry prosperity.

Looking back at the industry cycle from 2021 to 2022, the graphitization segment experienced a prolonged period of scarcity within the supply chain. In 2021, a market-wide shortage of anode materials-where demand far outstripped supply-drove graphitization processing fees to record highs. These substantial profit margins incentivized both integrated anode manufacturers and independent third-party graphitization specialists to aggressively ramp up their capacity expansion efforts. In 2022, newly added capacity for graphitization and integrated support facilities surpassed 4 million tons-a year-on-year increase of over 150%. Concurrently, total investment in the anode industry exceeded 160 billion RMB, marking a year-on-year surge of over 200%.

As the previously planned new capacity came online and entered production in concentrated fashion, the industry's supply-demand landscape underwent a reversal in 2023. Both the graphitization and anode sectors plunged into a state of overcapacity, leading to a drastic collapse in graphitization tolling rates. Quotations from some tolling manufacturers plummeted to below 10,000 RMB per ton-perilously close to the bare minimum production cost threshold.

In 2024, the industry's overcapacity landscape has evolved into a more structurally differentiated pattern: throughout the year, over 90 enterprises were actively producing anode materials, bringing the industry's total capacity close to 4 million tons. While the industry-wide average capacity utilization rate hovered below 50%, the top six leading enterprises within the sector managed to maintain utilization rates exceeding 70%.