With the complete cessation of sales of fuel vehicles in China by 2035, there will be rapid growth in the use of spherical graphite and lithium negative electrode materials for power batteries. The global energy storage market has significantly improved, the construction of 5G base stations in China has accelerated, and the proportion of lithium batteries used in small power markets such as electric tools and electric bicycles has increased. This has significantly boosted the demand for natural graphite negative electrodes, thereby driving a significant increase in demand for spheroidized graphite.

As of September 2022, the planned production capacity of negative electrode material bases in China exceeds 14 million tons. In 2021, the shipment volume of negative electrode materials is 780000 tons, and the shipment volume of graphite powder is 1.2 million tons. The International Atomic Energy Agency (IEA) predicts that the demand for graphite from clean energy technologies will increase 25 times from 2020 to 2040, and by 2040, the shortage of graphite supply will increase to over 8 million tons, with huge market prospects.

The current designed production scale is 50000 tons/year of refined powder. Based on the current price of -195 graphite of 4300 yuan/ton, deducting production costs of 1500 yuan/ton, a net profit of 140 million yuan can be achieved. If refined powder is converted into deep processed products such as negative electrode materials, the profit margin is even greater.