Panorama of China's lithium battery negative electrode material industry in 2021

Lithium battery negative electrode materials are mainly divided into natural graphite negative electrode materials and artificial graphite negative electrode materials. Among them, the upstream of natural graphite negative electrode materials is natural graphite ore, and the upstream of artificial graphite negative electrode materials includes needle coke, petroleum coke, asphalt coke and other raw materials. The downstream industry of lithium battery three major fields: power batteries , 3C consumer batteries and industrial energy storage batteries.

Major listed companies in the industry: Putailai (603659), Shanshan Holdings (600884), Zhongke Electric (300035), Xiangfenghua (300890), National Technology (300077), Shanhe Intelligent (002097), Baichuan Holdings (002455)

Core data of this article: Composition and classification of lithium battery negative electrode materials, lithium battery negative electrode material industry chain, development history of lithium battery negative electrode materials, upstream output of lithium battery negative electrode materials, downstream output and structure of lithium battery negative electrode materials, shipments of lithium battery negative electrode materials, shipments of power and energy storage lithium batteries, market size of lithium battery negative electrode materials, graphite prices, competition pattern of lithium battery negative electrode material companies, and market size forecast of lithium battery negative electrode materials

Industry Overview

1. Definition: Lithium battery negative electrode material is an important material for lithium batteries

The negative electrode material of lithium battery plays the role of storing and releasing energy in lithium battery, and mainly affects the initial efficiency and cycle performance of lithium battery. The negative electrode material of lithium battery is made of carbon or non-carbon materials and other negative electrode active substances, adhesives and additives mixed into a paste adhesive, which is evenly applied on both sides of copper foil, dried and rolled.

Lithium battery negative electrode materials can be divided into two categories: carbon-based and non-carbon-based negative electrode materials according to the different negative electrode active materials:

1) Carbon materials can be divided into negative electrode materials such as graphite, hard carbon, soft carbon and graphene. Graphene negative electrode materials can be further divided into natural graphite, artificial graphite, composite graphite and mesophase carbon microspheres. Among them, natural graphite and artificial graphite are the most widely used.

2) Non-carbon materials are divided into silicon-based, lithium titanate and other non-carbon materials.

2. Industry chain analysis: The downstream lithium battery industry has a great impact on the development of negative electrode materials

In the upstream of lithium battery negative electrode materials, the raw materials vary according to the type of product: the upstream raw material of natural graphite negative electrode materials is natural graphite ore, and the upstream raw material of artificial graphite negative electrode materials is needle coke, petroleum coke, asphalt coke, etc.; in terms of equipment for lithium battery negative electrode materials, it mainly includes fluidized bed, rotary kiln, etc.

The midstream of lithium battery negative electrode materials is the production and processing of lithium battery negative electrode materials, which produce different types of negative electrode materials, the most important of which is natural graphite negative electrode material.

The downstream of lithium battery negative electrode materials is the lithium battery industry, and the products of the downstream industry are ultimately used in three major areas: power batteries, 3C consumer batteries, and industrial energy storage batteries. The downstream industry has a great impact on the development of the negative electrode material industry, and its demand changes directly affect the future development of the negative electrode material industry.

At present, natural graphite is the main raw material for lithium battery negative electrodes. The main manufacturers include China Baoan, Fangda Carbon, etc. There are a large number of suppliers of upstream production equipment involving a variety of equipment, but the scale of the companies is generally small, and there are few listed companies; in the midstream, BYD, Shanshan Holdings and Putailai are the leading companies in the lithium battery negative electrode material industry; among the companies in the downstream lithium battery industry, CATL has a layout in the fields of power batteries, 3C consumer batteries and energy storage batteries, and has a large market share.

Industry development history: The industry is in a period of rapid development

In the 1990s, China's lithium battery negative electrode material industry was in its infancy, and the market was mainly occupied by Japanese companies. In the 21st century, China's lithium battery negative electrode material industry entered its start-up period, and lithium battery negative electrode materials gradually achieved localization: in 2005, Shanshan Technology developed a new artificial graphite negative electrode material FSN-1 series, completing the localization of artificial graphite, and in 2007, B&T completed the localization of modified natural graphite. After 2011, China's lithium battery negative electrode material industry entered a period of rapid development, and most domestic companies have achieved import substitution in the field of lithium battery negative electrode materials.

Upstream supply situation: China's lithium battery negative electrode material raw material output is on the rise

The upstream participants in the lithium battery negative electrode material industry are raw material and outsourced processing providers. Among them, there are many types of raw materials, mainly petroleum coke, needle coke, asphalt coke, as well as natural graphite, titanium, silicon and other mineral materials.

From 2016 to 2020, China's production of natural graphite and titanium dioxide continued to grow, while silicon production fluctuated. In 2020, China's needle coke production capacity reached 1.9 million tons, up 400,000 tons from 2019.

The upstream production equipment of lithium battery negative electrode materials involves a variety of equipment. There are many suppliers, but the scale of enterprises is generally small, and there are few listed companies. In addition, the prices of upstream production equipment vary greatly. For example, the market price of graphitization furnaces ranges from 100,000 to millions of yuan, and the price of artificial graphite coating equipment ranges from more than 100,000 to more than 300,000 yuan per unit.

Downstream development: Downstream lithium battery market demand prospects are broad

At present, the downstream of lithium battery negative electrode materials is mainly in the fields of power batteries and energy storage batteries.

In recent years, the rapid development of power lithium batteries has become the main factor driving the growth in demand for lithium battery negative electrode materials. According to data released by the Gaogong Industry Research Institute of Lithium Battery, China's power lithium battery shipments increased year by year from 2014 to 2020. In 2020, China's power lithium battery shipments were 80GWh, an increase of 13% over 2019.

In addition to power lithium batteries, the rapid growth in shipments of energy storage batteries has also driven the market demand for lithium battery negative electrode materials. In 2020, the shipment volume of the energy storage battery market exceeded 50%, and the growth was mainly driven by the growth of overseas home storage markets and domestic base station-side energy storage demand. It is estimated that in 2025, the shipment volume of energy storage lithium batteries will reach 68GWh, an increase of 425% from 2020.

Current status of industrial development

1. Supply: Overall shipments are rising steadily, with artificial graphite accounting for the majority of the market share

According to data released by Gaogong Lithium Battery and Xinlang Information, China's negative electrode material shipments increased year by year from 2016 to 2020, with 365,000 tons of negative electrode materials shipped in 2020. The market growth rate exceeded expectations, mainly due to the substantial increase in global lithium battery demand in various fields. Among them, in 2020, artificial graphite shipments reached 305,000 tons, accounting for 83%, and natural graphite shipments were 5.7%, accounting for 16%.

2. Demand: The lithium battery market is growing steadily

In recent years, the expansion of the lithium battery market has stimulated the growing demand for lithium battery negative electrode materials. According to the survey data of Gaogong Industry Research Institute (GGII), the market size of lithium battery negative electrode materials in China was 12.0 billion yuan in 2019, a year-on-year increase of 14.29%. It is estimated that the market size in 2020 will be about 14.8 billion yuan.

3. Price: The price of natural graphite products continues to decline

From 2016 to 2021, the price of artificial graphite 340-360 mAh/g models remained basically unchanged, while the prices of low-, medium- and high-end natural graphite continued to decline. In March 2021, the price of artificial graphite 340-360 mAh/g models was 70,000 yuan/ton, the price of low-end natural graphite was 24,000 yuan/ton, the price of medium-end natural graphite was 36,000 yuan/ton, and the price of high-end natural graphite was 55,500 yuan/ton.

Industry competition landscape

1. Regional competition: enterprises are concentrated in different regions

The companies engaged in lithium-ion battery materials business in China are mainly private enterprises, with a large number of them taking the path of independent research and development in terms of technology. As of May 2021, the number of registered companies engaged in lithium-ion battery materials business in China was 1,136.