[SMM Analysis] Market Demand Continues to Rise, Anode Production Increases in November

In November 2024, China's anode materials production increased 6% MoM and was up 38% YoY.

Demand side, NEV market: In November, with strong trade-in subsidies and automakers pushing for annual targets at year-end, downstream battery cell production continued to rise, leading to increased demand for anode materials. Energy storage sector: In November, due to the approaching year-end grid connection period domestically and changes in overseas political situations, downstream procurement was strong, driving up anode production. Consumption side: In November, as downstream stockpiling had been done in advance, consumption battery cell production dropped back slightly. However, due to the release of several new models and the arrival of year-end promotions, downstream volume remained assured, keeping demand for anode materials high.

In December, downstream rush for installations sentiment remained, maintaining high demand for anode materials. Therefore, overall anode materials production remained at a high level. However, considering the current cautious sentiment among anode enterprises and their control over inventory, anode production might decline. It is expected that in December, China's anode materials production will decrease 7% MoM and increase 53% YoY.