By Wang Min and Ma Lin, China Center for Information Industry Development

After more than 10 years of development, China’s graphene industry made significant progresses in aspects like industry scale and enterprise quantity – an outcome of cooperation among government sectors, enterprises, research institutes, universities, etc. In addition, industrial application was initially achieved in some fields. However, the graphene industry is still incapable of conducting large-scale production, and will face new challenges in the new stage of development.

New development trends of China’s graphene industry

1. Application-driven growth

With graphene production technologies getting mature and product application becoming diversified in recent years, new growth points have been generated more frequently by application instead of technologies. The Covid-19 spurred graphene’s new functions applying to the health care industry. Further, graphene was increasingly more adopted by terminal application enterprises, e.g. Huawei and Xiaomi.

2. Feature development

Development of the graphene industry tends to be reasonable. Innovation centers are being constructed in many places. A characteristic regional development pattern is forecast to form. In detail, Jiangsu is establishing a graphene industrial chain serving customers mainly from the areas of new information technologies, aerospace equipment, ocean engineering, high-tech ships, energy conservation, environment protection and new energy resources. The chain in Zhejiang meets demand mainly from electric vehicles, ocean engineering, functional composites, flexible electronics and electronic information industries. Graphene companies in Beijing are researching mass production and general application technologies.

3. Closer relations

Graphene is closely related not only to traditional industries (e.g. textiles, footwear, apparel, functional coatings and modified rubber), but also to emerging sectors like electronic information, aerospace, new energy resources and biomedicine. During the 14th Five-Year Plan period (2021-2025), domestic graphene firms will research new product functions to expand application in both traditional and emerging industries.

New progresses related to China’s graphene industry

1. Policy support

China issued a series of policies to support the graphene industry, including Opinions on Accelerating Innovation of Graphene Industry, Plan on Technological Innovation in Materials During 13th Five-Year Plan Period (2016-2020), Guidelines for New Materials Industry, etc. In addition, the central government boosted industrialization of graphene by means of establishing demonstration parks, innovation centers, public service platforms, etc. From 2016 to 2020, local governments in 27 provinces (autonomous regions, municipalities) issued graphene related policies or regarded graphene as a development focus. Graphene industry alliances or steering groups were founded in Beijing, Shandong, Jiangsu, Fujian, etc. Graphene was listed as a kind of cutting-edge new material and a priority to develop in 17 provinces (autonomous regions, municipalities), according to their 14th Five-Year Plans.

2. Soaring number of enterprises

The number of domestic graphene firms has surged in recent years, and the number of registered graphene-related enterprises jumped 79.25% YoY to 13 279 in 2021. By April 2022, the number of companies with business scope including graphene had exceeded 35 000. More than half of domestic graphene enterprises were in Guangdong, Shandong, Jiangsu, Zhejiang and Fujian – five provinces in eastern coastal areas. A batch of graphene companies (e.g. BTR New Material Group Co., Ltd., Fangda Carbon New Material Co., Ltd., etc.) went public, although most graphene firms were small and medium-sized ones or startups.

3. Accelerated industrial application in some areas

Stronger innovation capability helped graphene enterprises enhance cooperation with upstream and downstream firms. Domestic graphene-related patent application number reached 11 123 in 2021, according to CNKI data. In industrial fields, industrial application of graphene concentrates in composite materials, energy storage, thermal management and electronics. For example, graphene modified anticorrosive coatings of Xiamen Talentmats New Materials Science & Technology Co., Ltd. passed Wuyuanwan Bridge anti-corrosion transformation demonstration project acceptance. Ningbo CRRC New Energy Technology Co., Ltd. launched large-capacity graphene/activated carbon composite electrode supercapacitor and graphene-Nano hybrid supercapacitor, which were both used in city trams. In consumption areas, industrial application of graphene concentrates in heat dissipation, intelligent wearable, physical therapy and lighting. Spectral light wave treatment room – a kind of large graphene medical device developed by Grahope New Materials Technologies Inc. – was approved to be registered as class II medical instrument in December 2021.

New challenges

1. Large-scale application in downstream areas curbed by key technologies

Domestic graphene firms constructed graphene powder and film materials production lines, and basically realized mass production. However, problems like uneven product size and number of layers, unstable quality and performance indexes far below the laboratory level still exist currently. Hence failure to meet the needs of large-scale industrial application. Seen from application side, graphene is mainly used as additives to improve functions of base materials. To achieve large-scale application, compatibility and uniform dispersion nature of graphene need to be improved. Graphene films are mainly used in flexible display and electronic/optoelectronic fields. Related difficulties involve large-scale production technologies, high costs, etc.

2. Small scale and weak competitiveness

Most graphene enterprises are SMEs or startups – weak in R&D, innovation and competitiveness and mainly engaged in low-end products used in composites, coatings, etc. The number of graphene firms, founded more than 10 years ago, takes up 5% of the total. In spite of participation, most listed companies don’t regard graphene as main business.

3. Greater development pressure

Graphene has huge potential in high-end areas, but at present is used mainly in low-end sectors. Researching high-end products is in urgent need, putting forward higher requirements for talents, technologies and capital. Further, more cautious investment and more uncertainties from home and abroad are impacting production, import and export of graphene, which may cause capital shortage and bring risks to affect supply chain security.

Suggestions

1. To make technical breakthroughs

The domestic graphene industry is advised to make breakthroughs in key technologies related to scale production and high-end application, with the help of national key laboratories, research institutes, universities and leading enterprises. Graphene companies should speed up R&D on products used in the fields of information technologies, aerospace, new energy resources, etc.

2. To improve core competitiveness

State-owned and large firms are encouraged to participate in the graphene industry and conduct related R&D. A group of leading enterprises competitive in the world will be cultivated. Small and medium-sized graphene firms are advised to focus on main business and innovation, and provide characteristic products and services.

3. To integrate resources and establish demonstration parks

Upstream and downstream resources of the nation’s graphene industrial chain will be integrated. A group of graphene industrial application demonstration bases will be established to improve competitiveness of the industry.

4. To propel characteristic and high-end development

     Enterprises in key regions like Jiangsu, Zhejiang, Guangdong, Shandong and Beijing are encouraged to utilize existing resources (e.g. brands, markets, funds, talents, R&D, etc.) to establish characteristic regional graphene industrial chain. Meanwhile, regional cooperation should be strengthened.