China’s leading global capacity in graphitized petroleum coke represents both a significant advantage and potential hidden risks, necessitating strategic management to transform advantages and mitigate risks. The specific analysis is as follows:
Advantages: Leading Capacity Establishes Global Industrial Dominance
Dual Monopoly on Resources and Capacity
China’s leading position in graphitized petroleum coke capacity stems from its in-depth control over the entire graphite industry chain. Upstream, it possesses 77% of the world’s natural graphite reserves (e.g., Jixi Mine in Heilongjiang Province) and enjoys a high self-sufficiency rate in raw materials such as petroleum coke and needle coke as the world’s largest oil refiner. Midstream, through proprietary technologies like continuous graphitization furnaces, it has shortened production cycles by 50% and reduced energy consumption by 30%, forming technological barriers. Downstream, its global market share in anode materials reaches 98.5%, with leading enterprises’ single-plant capacity exceeding three times that of the entire U.S. industry. This full-chain advantage enables China to exert a “dimensionality-reducing blow” in the graphitized petroleum coke sector, directly gripping the “lifeline” of the global power battery industry chain.
Dual Support from Economic and Strategic Value
Graphitized petroleum coke is the core raw material for lithium-ion battery anodes, accounting for approximately 6%-10% of battery costs, with its performance directly influencing fast-charging capabilities and battery lifespan. China’s unparalleled cost-effectiveness (costing only 12,000perton,comparedto40,000 per ton for overseas self-built capacity) has made 90% of Japanese and South Korean battery enterprises reliant on Chinese anode material supplies. Furthermore, after implementing export controls on graphite and related materials, China has created an estimated 180,000-ton annual market gap overseas, driving up power battery production costs by 3%-5% and further solidifying its strategic bargaining power.
Virtuous Cycle of Technological Iteration and Capacity Expansion
Chinese enterprises continuously innovate in processes such as granulation, graphitization, and coating carbonization. For instance, continuous graphitization technology leads overseas counterparts by 5-8 years, while silicon-carbon anode technology approaches theoretical peaks. Leading enterprises, by partnering with top clients like CATL and BYD, have formed a closed loop of “technology-capacity-market,” driving global anode material capacity concentration in China (with Chinese capacity exceeding 95% globally by 2024).
Hidden Risks: Structural Vulnerabilities Behind Leading Capacity
Contradiction Between Resource Exploitation and Environmental Protection
Despite China’s abundant graphite reserves, the long-standing “mining-for-export, low-value-export-high-value-import” model has led to resource waste. The export price of primary graphite products is less than 3,000 yuan per ton, while imported high-end specialty graphite costs up to $100,000 per ton, highlighting insufficient deep-processing capabilities. Additionally, widespread illegal mining and excessive use of auxiliary materials like acids, alkalis, and coal exacerbate environmental pollution, conflicting with sustainable development goals.
Challenges from Technological Blockades and Domestic Substitution
Although China has achieved monopoly in artificial graphite anodes, it remains dependent on imports for specialty graphite (e.g., nuclear graphite, aerospace graphite). Countries like the U.S., Japan, and Germany impose technological blockades to restrict China’s high-end graphite development. For example, while isostatic graphite has broken through “chokepoint” barriers, large-specification fine-particle products still require imports, making domestic substitution a long-term endeavor.
Impact of Geopolitical Tensions and Trade Frictions
China’s leading position in graphitized petroleum coke has triggered Western encirclement. The U.S. Department of Commerce has imposed tariffs of up to 721% on some Chinese anode material enterprises and attempted to rebuild domestic supply chains through the Inflation Reduction Act. The EU has countered Chinese subsidy policies with the Net Zero Industry Act. Although overseas capacity building faces multiple obstacles such as equipment, technology, and energy consumption (estimated to take 5-8 years), trade frictions may still disrupt China’s export markets.
Path to Breakthrough: From Capacity Leadership to Strategic Sustainability
Strengthening Full-Chain Technological Autonomy
Increase research and development efforts in specialty graphite to break through technological blockades in high-end fields like nuclear and aerospace graphite. Promote upgrades in graphite purification and modification technologies to reduce reliance on primary products. Enhance patent layouts for key equipment such as granulation kettles and graphitization furnaces to consolidate technological barriers.
Promoting Synergy Between Resource Development and Environmental Protection
Establish a strategic reserve system for graphite resources to balance exploitation and conservation. Promote green mining technologies to reduce pollution emissions. Use tax incentives to guide enterprises toward deep-processing sectors, enhancing product added value.
Building an International Cooperation and Countermeasure System
Leverage export control tools to revalue advantageous resources, such as including graphite anode materials in control lists to drive up overseas production costs. Expand emerging markets through the Belt and Road Initiative to reduce reliance on European and U.S. markets. Strengthen cooperation with international organizations like the International Energy Agency (IEA) to promote the internationalization of graphite technology standards.
Post time: Dec-16-2025