On the current trajectory of EV sales and other li-ion battery demand, total battery anode materials (BAM) demand will increase 300% by 2025.
As the continent’s decarbonization efforts pick up steam, the European market will see the most aggressive growth in BAM production capacity.As demand for electric vehicles soars, spurred by government incentives and a push to decarbonize the transportation sector, the global battery industry is set to attract significant attention and investment. Rystad Energy forecasts total EV sales this year will reach nearly 10 million units, a 43% jump from 2021 sales.
Anodes are primarily composed of natural or synthetic graphite, both of which have unique benefits and drawbacks. A synthetic graphite anode generally has higher efficiency and is of premium quality, supporting higher-end applications.
“Battery manufacturers are frantically building production capacity to meet demand. Manufacturers need to go from zero to 100 at breakneck speed, so it’s no surprise that they are leaning toward the more immediate fix, synthetic graphite, despite its inferior ESG implications. Without an increase in synthetic graphite production, it is difficult to see how EV adoption targets can be met in time,” says Edison Luo, senior analyst at Rystad Energy.