The increasingly difficult anode material market, along with electric vehicles, remained positive, increasing 21.5% in 2025'

*This content was translated by AI.

Despite concerns over stagnant global demand for electric vehicles (Chasm), the global electric vehicle battery cathode material market showed solid growth of more than 30% year-on-year last year. In particular, Korean anode material companies are facing challenges from Chinese brands by expanding their volume and reorganizing their portfolios focusing on high value-added products.

According to a recent report released by market research firm SNE Research, the use of anode materials for batteries mounted on electric vehicles (EVs, PHEVs, HEVs) worldwide from January to December 2025 totaled 2,649 kt (kilotons). This is a growth of about 35.3% compared to 1,958 kt recorded in 2024. This suggests that the trend of popularization of the electric vehicle market has not stopped despite the evaluation that the battery industry is not as good as previous years.

The growth of the anode material market is similar to the increase in electric vehicle deliveries. Global EV deliveries in 2025 were up about 21.5% year-over-year to 21.47 million units. Analysts say that the increase in the use of cathode materials outpaced the increase in vehicle sales as the battery capacity mounted per vehicle increases and the preference for models with long mileage continues.

If you look at the share by country and company, Chinese companies are still strong. Shipments of Chinese anode material companies remained overwhelming as the adoption of premium LFP (lithium iron phosphate) batteries, backed by China's domestic market, the world's largest electric vehicle market, increased. However, the presence of Korean anode material companies was evident in the non-China market except for China. Loads of cathode materials from four major South Korean companies - EcoPro BM, L&F, LG Chem and POSCO Future M - continued to grow by double digits year-on-year on the back of increased EV production in the North American and European markets.

In particular, 2025 was a 'great transition period' for cathode material technology. High-nickel NCM (nickel, cobalt, manganese) cathode materials have evolved into ultra-high-performance products with a nickel content of more than 90% in response to premium automakers' demands to maximize energy density. EcoProBM and POSCO FutureM defended their profitability by securing stable supplies of high-nickel cathode materials supplied to Samsung SDI and Hyundai Motor Group. On the other hand, in the LFP cathode material market aimed at the entry-level market, Korean companies countered with the development of high-tech entry-level materials such as lithium, manganese, iron, and aluminum (LMFP) amid China's dominance.

In terms of the proportion of each material, the advancement of LFP was remarkable. As major OEMs such as Volkswagen, Hyundai Motor, and Stellantis, as well as Tesla's Model 3 and Model Y, adopted a large number of LFP batteries in low-cost entry models, LFP's share of the total anode material market began to exceed 50%. In response, Korean companies are also rushing to establish a system to mass-produce LFP cathode materials, and electric vehicles equipped with domestic LFP cathode materials are expected to be launched in earnest from 2026.

Risk management due to fluctuations in raw material prices has been a hot topic in the industry throughout 2025. Prices of major minerals such as lithium and nickel have entered a downward stabilization trend, but there have been some "reverse lagging effects" in which inventory of raw materials purchased at high prices in the past puts downward pressure on profitability. However, as the second half of the year progressed, the cost structure improved and the profit rate recovery became clear, especially among companies that succeeded in vertical integration of supply chains.

Experts predict that 'differentiating the jade' will begin in earnest for the market outlook after 2026. As protectionism such as the U.S. Inflation Reduction Act (IRA) and the European Core Materials Act (CRMA) is strengthened, whether to establish a "de-China supply chain" excluding Chinese materials will be a key competitive edge. Korean companies are increasing the proportion of local production through the operation of a joint venture (JV) in North America, and are also increasing their ability to respond to environmental regulations by installing a material recovery system through waste battery recycling.

In conclusion, the global anode material market achieved high growth of 35% quantitatively in 2025. Qualitatively, it was a year of intense technological innovation to cope with the polarized demand structure of LFP and high nickel. According to SNE Research, the anode material market will continue to grow at an annual average of more than 20% over the next five years, more than three times the current size by 2030. If Korean companies succeed in diversifying their portfolios, such as cathode materials for next-generation all-solid batteries and sodium ion battery materials, they are expected to strengthen their global market hegemony.

<© STARNEWS. All rights reserved. No reproduction or redistribution allowed.>

*This content was translated by AI.