China’s ongoing energy shortage, which has seen local governments enforce intermittent power cuts since July 2021, has begun to affect domestic anode and cathode production as several producers were forced to scale back production in late Q3.
Hunan and Inner Mongolia are among the most affected areas of the battery supply chain, with the former a production hub for cathodes and the latter a hub for synthetic graphite anode graphitisation processing.
Restrictions in Inner Mongolia have exacerbated graphitisation capacity constraints, which began in early 2021, driving up synthetic anode production costs.
Outside of the most affected regions, flake graphite . . .