Impact of COVID-19 on Next Generation Anode Materials in Chemicals and Materials Industry
Global next generation anode materials are often found in transportation, electrical and electronics, energy storage, and other industries. Manufactured used silicon/silicon oxide blends, lithium titanium oxide, silicon carbon fiber, silicon graphene, lithium metal, and other materials are used to make global next-generation anode materials products. It also included chemical and physical properties and energy storage capacity, which are used in various kinds of applications. However, due to the spread of the COVID-19 pandemic, most industrial plants have been shut down, and global next generation anode materials demand has been negatively impacted, affecting production facilities for many months, which resulted in the disintegration of the global supply chain. Economic insecurity caused by the pandemic has also caused investors in the public and private sectors to reconsider their investments as debts mount. This has caused a downturn in the electronics and batteries industry.
Batteries are highly used in mobiles, laptops, and invertors, which can be used after charging of power storage devices. These devices include the global next generation anode materials, which help produce high-quality devices and batteries which are used in the electronic industries.
With lower demand for electronic goods, the demand for lithium-ion batteries has also fallen, which resulted in a decline in the demand for global next generation anode materials in the market, which will affect the future growth. Due to the COVID-19 several companies in the electronic goods have also halted the launches and production of new models by keeping in mind the low demand in the electronic market.
· Apple Inc. has already declared delays in iPhone productions during COVID-19 situation
· Foxconn Technology Co., Ltd has not yet confirmed the reopening of their factories and production of goods, They have stopped almost all of their production in China
· The companies such as SHARP CORPORATION, Nintendo, and SONY have also announced delays in their productions
· Nintendo confirms disruption in the production of electronic goods
· SHARP CORPORATION could move production out of China due to the COVID-19 situation
· Electrolux, an electronics appliances manufacturer, has come in contingency mode
· Facebook also resulted in a delay in the production of Oculus Quest Virtual Reality Headset
· AT&S, a major manufacturer of substrates semiconductors and high-end printed circuit boards, delayed production in China, due the spread of the virus
· Xiaomi company has postponed the launch of the Mi 10, which was scheduled on March 31, 2020
· Realme Company has also postponed the launch Realme Narzo 10 & 10A in India
IMPACT ON PRICE
The worldwide global next generation anode materials market is highly fragmented, with several small and big competitors competing on price and quality. Due to the spread of COVID-19 pandemic, the demand for global next generation anode materials have seen a severe downfall since May, 2020 which resulted in the fluctuation of the prices for these products. As local producers and SMEs have been majorly affected due to this pandemic, the local demand couldn’t be catered up to the meet, which thereby forced the price to drop, affecting the total global next generation anode materials market. Also, the availability of items in large quantities creates a large stock, which drives the price to decline, consequently affecting the broader market.
IMPACT ON DEMAND
The major sector of the global next-generation anode materials market is transportation, electrical and electronics, energy storage, among other, industries. A major part of the demand for next-generation anode materials comes from this particular unit. The transportation, electrical, and electronics sectors had to suffer the burden of COVID-19. Furthermore, the disposable income of the consumers also experienced a sharp fall which in turn restricted the demand for these end-use goods, hence creating uncertainties in the global next generation anode materials market.
IMPACT ON SUPPLY CHAIN
The global Coronavirus pandemic has put the contemporary global supply chain to the test like never before. It had a genuine global impact, causing many fractures in numerous supply chains like component suppliers, production locations, and last to the customers. It is difficult, if not impossible, for businesses to maintain efficient supply while having redundancy across all of their processes.
Due to a ban on interstate travel, the supply chain also suffered due to the emigration of migrant workers. It also increased operating costs because commodity prices (raw materials for the construction industry) are scarce. In this situation, both manufacturers and consumers are facing issues with the timely availability of raw materials.
AFTERMATH OF COVID-19 AND GOVERNMENT INITIATIVE TO BOOST THE GLOBAL NEXT GENERATION ANODE MATERIALS MARKET
The government has taken many steps to ensure the availability of raw materials by keeping track of the supply and demand of the intermediate products since they are used to make the final products that reach the consumers. Alongside, the government is also taking action like providing subsidies for raw materials, supporting the domestic producers with short-term loans, among others. To assist SMEs (small and medium enterprises) and local manufacturers engaged in the production of next generation anode materials.
STRATEGIC DECISIONS FOR MANUFACTURERS AFTER COVID-19 TO GAIN COMPETITIVE MARKET SHARE
The manufacturing sector was one of the most damaged by COVID-19. China, where Coronavirus was first found is home to majority of facilities that supply raw materials to other production units in the world. Several steps have been taken to increase international cooperation among the countries in order to promote investments and also to improve the ease of doing business inside the nations. New and existing projects have been given a kick start by inviting technological innovations supported by the government. Besides, the government has given financial support to local producers and SMEs and also helped them in providing subsidized and discounted raw materials.
Global next generation anode materials are widely utilized in the transportation, electrical and electronics, energy storage sector because of its numerous end-use products. The COVID-19 pandemic has caused substantial obstacles to global supply chains. Due to shut down transportation, electrical, and electronics, the demand for next-generation anode materials has declined in many regions, countries. Repeated nationwide curfews and shutdowns continue to hamper or even halt the movement of raw materials and completed goods, causing manufacturers to suffer. Manufacturing and distribution issues are likely the most visible disturbances to all types of material markets. But simultaneously, the government of every country is taking various measures and actions in order to overcome the effects of the pandemic.