[SMM Analysis] Anode Material Output Hits New High in Aug 2026, Driven by EV and ESS Demand

Published: Sep 8, 2026 16:11

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In August 2026, China's anode material production continued its upward trend, with the output pace accelerating further.

In August 2026, China's anode material production continued its upward trend, with the output pace accelerating further. According to SMM statistics, anode material production reached 369,000 mt in August, hitting a new high for the period. However, behind the surge in production, a structural issue continues to brew—the graphitisation capacity gap persists, leaving effective finished anode output still struggling to cover downstream order growth. Spot circulation remains tight, and the industry as a whole continues its destocking trend.

Looking at the core drivers of production growth, persistently rising end-user orders are the direct catalyst. In August, with the traditional September-October peak season approaching, downstream battery cell manufacturers gradually released stocking demand. Coupled with the consumption tax implementation policy driving front-loaded orders, some peak-season orders were pulled forward to August for concentrated production, pushing NEV and ESS battery cell production steadily higher and in turn providing strong order support for anode materials. Anode enterprises generally showed high willingness to schedule production.

Looking ahead to September, as the September peak season effect becomes more pronounced, anode material production is expected to continue climbing from August's high base. However, it should be noted that graphitisation capacity release faces rigid constraints, and new effective capacity is unlikely to come online in a concentrated manner in the short term. Meanwhile, raw material prices for petroleum coke and needle coke stay high, graphitisation tolling service fees remain elevated, and downstream leading battery manufacturers hold significant bargaining power. With multiple factors intertwined, the supply-demand tight balance in the anode industry is likely to persist.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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