Europe is expected to become the second-largest growth market for lithium batteries after China. The EU has decided to ban the sale of internal combustion engine vehicles from 2035, leading to insufficient lithium battery supply in Europe and a strong demand for graphite anode materials over the next decade.
Regulatory issues from the EU Commission will favor the localization of graphite anode material manufacturing in Europe, enhancing Europe's willingness to produce key materials domestically (EU Battery Regulation, Raw Materials Regulation, etc.). The EU Battery Regulation aims to strengthen the sustainability and competitiveness of the EU's internal battery industry and emphasizes the importance of developing sustainable and environmentally friendly battery technologies, including graphite anode materials.
The Critical Raw Materials Act sets benchmarks for the diversification of strategic raw materials (including synthetic and natural graphite) in the EU, with annual consumption from a single third country not exceeding 65%, helping to increase the autonomy of the local critical raw materials supply chain.
The European anode materials supply chain is beginning to localize, and Sanergy has established the first synthetic graphite anode material manufacturing plant in Italy ahead of other competitors, becoming Europe's first artificial graphite anode material manufacturer.
