Tony Alderson

The cathode active material (CAM) market experienced notable price volatility throughout the Q2 assessment period. Prices increased during the early part of the quarter as lithium and other feedstock costs rose amid strong electric vehicle, export and energy storage demand. This was followed by softening prices in the later May assessment, declining further through July as lithium and precursor prices weakened.

Trends in anode active material (AAM) prices showed clear divergence between synthetic and natural graphite material in Q2 2026. Synthetic graphite AAM prices increased as demand strengthened and feedstock costs rose. Natural graphite AAM prices, meanwhile, remained broadly unchanged amidst weaker relative demand, substitution pressure and relatively stable feedstock prices. The divergence was most evident in June, when synthetic graphite producers began passing through earlier feedstock cost increases. By contrast, natural graphite AAM remained relatively rangebound throughout the quarter. As such, low-energy synthetic AAM prices rose above $2,900/tonne, reaching parity with and then exceeding natural graphite AAM for the first time since May 2023.

The Middle East is rapidly establishing itself as a key growth hub for the anode supply chain, underpinned by large-scale investments, strategic geographic positioning, and competitively priced energy. The region’s push into battery materials reflects a broader shift as Gulf economies look to diversify away from hydrocarbons and position themselves within the global energy transition. As of 2026, the region has no active capacity, yet Benchmark data shows that the Middle East will account for 11% of 2030 capacity for traditional anode active material (AAM) in the ex-China market, with this share remaining broadly stable through to 2035.

Companies developing silicon-based anode technology have drawn more than USD $1.29 billion in ex-China investment since Benchmark began tracking new investments into the industry in 2024. Benchmark’s Energy Transition Capital Briefing database records 17 funding rounds from January 2024 to February 2026, ranging from seed funding rounds to large-scale equity funding rounds. It follows major earlier investments into silicon anode players, including $80m in UK-headquartered Nexeon in 2022.

Mozambique has enacted sweeping mining reforms that will fundamentally alter the terms on which mining ventures are developed in the country. President Daniel Chapo signed the new mining law on 3 June, following parliamentary approval in May. The legislation mandates a minimum 15% free-carried and non-dilutable state equity stake, held through the National Mining Company (ENM), across all mining projects, with that share able to increase further.

Tesla has withdrawn its notice to terminate a graphite anode supply agreement with Australia’s Syrah Resources, ending a protracted negotiation process and restoring a strategically important supply link within the US battery materials ecosystem. The dispute, which saw both parties extend a resolution deadline four times, centred on commercial terms and performance expectations tied to Syrah’s Vidalia facility in Louisiana. Under the original 2021 agreement, Syrah committed to supplying 8,000 tonnes of graphite anode material to Tesla over a four-year period, making it one of the first commercial-scale North American supply arrangements of its kind.

The CAM market recorded a strong first quarter, with prices rising sharply throughout January and February before stabilising in March as feedstock volatility eased and battery demand remained steady. Benchmark data shows that LFP CAM prices increased by ~38% between mid-January and mid-March, whilst NCM811 rose by ~25% over the same period.

The anode active material (AAM) market, across both natural and synthetic chemistries, remained broadly stable throughout Q1 2026. Firm downstream demand, particularly from the energy storage sector, was offset by continued structural oversupply and stronger buyer leverage. Benchmark data shows that medium capacity synthetic graphite AAM prices rose ~1% between mid-January and mid-March, whilst all other grades remained stable over the same period.

The Canadian government has signed an updated commercial agreement with Nouveau Monde Graphite (NMG) for supply, storage and resale of its natural graphite concentrate from the company’s Matawinie Mine.