Outlook for the battery anode market
The anode, a key component of lithium-ion batteries, has historically relied on a mix of natural and synthetic graphite, mainly from China. However, as new technologies emerge, graphite anodes must adapt. Three trends are beginning to shape the market: capacity shifting out of China, carbon footprint reduction, and supply deals between manufacturers. Anode plants are emerging in the US and Europe, aiming to reduce dependency on Chinese production. Manufacturers are moving anode manufacturing to renewable energy-focused regions to lower the carbon footprint, with North American and European anodes expected to be less polluting. The US Inflation Reduction Act has spurred deals between vehicle manufacturers and anode producers to secure credits and address potential supply deficits after 2040. Graphite anode prices are forecast to fall as capacity ramps up rapidly, but competition from other materials is likely in particular niches of the market.