[SMM Analysis] Market Heat Slightly Weakens, Anode Production Declines in December

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SMM, December 31:

In December 2024, China's anode material production decreased by 5% MoM, up 57% YoY.

Demand side this month, in the power sector, December saw trade-in subsidies continue to drive terminal automakers to push for annual targets. However, as both downstream and terminal sectors held certain raw material and finished product inventories, the production of downstream battery cell materials declined, weakening demand for key anode materials. In the ESS sector, with the year-end grid connection period approaching, companies had largely completed stockpiling, slowing the pace of the push for annual targets and leading to a pullback in anode material purchases. In the consumer sector, as year-end promotions came to an end, downstream production and sales activity cooled, reducing sentiment for anode material purchases. Overall, as year-end stockpiling for the annual target push had not fully concluded, downstream demand for anode materials remained somewhat supported. Although anode production declined, it stayed at a relatively high level.

In January, with the Chinese New Year holiday approaching, downstream battery cell production schedules are expected to further decrease, leading to continued weakening demand for anodes. Meanwhile, current anode companies are adopting a cautious approach, opting to reduce production to control inventory. As a result, anode material production is expected to decline further. It is estimated that in January, China's anode material production will decrease by 12% MoM, up 51% YoY.

SMM New Energy Research Team

Cong Wang 021-51666838
Xiaodan Yu 021-20707870
Rui Ma 021-51595780
Ying Xu 021-51666707
Disheng Feng 021-51666714
Yujun Liu 021-20707895
Yanlin Lü 021-20707875
Ye Yuan 021-51595792
Chensi Lin 021-51666836
Zhicheng Zhou 021-51666711
Haohan Zhang 021-51666752
Zihan Wang 021-51666914
Xiaoxuan Ren 021-20707866
Yushuo Liang 021-20707892
Jie Wang 021-51595902
Yang Xu 021-51666760