High-energy density batteries and fast‑charging capability have become the relentless pursuit of battery researchers and manufacturers. Silicon‑based anodes are designed to achieve far higher energy capacity than graphite, making them a key technology in enabling long-range electric vehicles and other applications where high performance and energy density are needed. The market for silicon anodes has moved beyond the experimental stage and is now steadily heading toward scale industrial applications.
This Insight presents the main product routes of silicon-based anodes, as well as their current industrialisation and investment progress. Silicon-based anodes provide a new high value-added market for silicon metal downstream products.
Silicon comes to the spotlight
Graphite has a theoretical specific capacity of approximately 372 mAh/g and has been the dominant anode material in lithium-ion batteries for more than two decades due to its proven advantages, such as high cycling stability, low cost and However, graphite anodes have approached their energy density limit, which has driven the search for new, high-efficiency anode materials with higher capacity and better energy density.
Among various candidate materials, silicon, tin, phosphorus, germanium, lead and antimony-based materials have been extensively experimented for their potential as anode materials.
The capacity of a silicon anode is ten-times that of a graphite anode on a mass basis. Currently commercialised silicon anodes offer three to five times the theoretical capacity of traditional graphite anodes, making them a key material for next-generation batteries.
Multiple technology paths for diverse needs
Silicon is currently used as the upstream raw material in producing silicon-based anodes for lithium-ion batteries.
Silicon-based anode products can be classified by technical route and application. There is no single universal solution for silicon given the presence of various battery technologies and applications areas.
The vapor-deposited silicon anode uses silane gas as a raw material and it is produced through a chemical vapor deposition (CVD) process. It is tailored for high-performance scenarios such as flagship consumer electronics, high-end power batteries, and solid-state batteries, representing the high technical threshold.
The ball-milled silicon-carbon anode is made from nano-ground silicon through a mechanical ball-milling process. Its lower cost makes it suitable for cost-sensitive applications such as low-speed electric vehicles and auxiliary power supplies. The silicon oxide anode – produced from silicon oxide (SiOx) via high-temperature synthesis – strikes a balance between performance and cost, and is primarily applied in power or energy storage scenarios.
The specific classifications and characteristics comparing with graphite anode are as follows:
Active deployment of Chinese manufacturers in silicon anode industry
From an investment perspective, silicon‑based anodes represent one of the most promising investment opportunities among next‑generation battery materials. The market appears to be fermenting high‑growth, fuelled by materials technology innovation and active capital support.
Although technical constraints such as cycle life and manufacturing cost remain, the industry is progressing rapidly, with commercial adoption gradually moving from high‑end niche batteries towards broader mainstream penetration.
Our investigation indicates that silicon‑based anodes in China are quickly transitioning from the ‘technology validation phase’ to the ‘engineering and large‑scale application phase’.
As of 2025, the total announced planned capacity for silicon‑based anodes has exceeded 300 kt/year, reflecting strong industry confidence in silicon-based anodes.
The chart below shows Chinese silicon-based anode projects by stage, with 70 kt/y under construction, 29 kt/y in environmental impact assessment, 58 kt/y filled, and 101 kt/y signed contracts with the local government. This suggests a possible robust market expansion driven by active capital inflow and accelerating commissioning towards 2030.
It is worth noting that despite the substantial pipeline of planned silicon anode projects, only 45 kt/y of capacity was commissioned in end-2025, reflecting operators’ caution and constraints remaining. Meanwhile, Chinese anode manufacturers have seen low profitability due to overcapacity in the graphite anode market. The implementation and production of planned projects will ultimately depend on sustained downstream demand and order commitments. The current wave of investment plans is more focused on strategic positioning within the silicon-based anode sector, rather than competing to capitalise on the profits from technological advancements.
Silicon-based anode development ex. China
Silicon anode capacity outside China reached approximately 7.5 kt by the end of 2025, with commercial operations being established across two technology pathways – silane-based processes (Group14, Sila, Nexeon) and silicon oxide-based routes (Daejoo Electronic Materials), while nano-gronnd silicon-based projects remain largely at the research and development (R&D) or pilot stage. Due to cycle life and scalability constraints, applications are currently focused on defence, drones and wearables with high performance and high costs.
Although announced plans project a total capacity of 200 kt outside China by 2030 across all three technological routes, we believe there is uncertainty regarding the actual realisation of this capacity.
Silicon anode market poised for growth in high-end applications
We expect the technological maturity and cost reduction for silicon-based anodes will be gradually achieved to facilitate scale application heading to 2030. Although we believe graphite will remain the dominate material for EV/ESS batteries anodes in the foreseeable future, the market for silicon anodes will still increase, especially given the anticipated growth of high-end EVs and upgrades in consumer electronics.
We track the silicon-based anode developments and report it in CRU’s Silicon Metal Market Outlook. For more detailed battery related analysis, please see our Battery Value Chain Market Outlook.
