Shanghai, Jan. 8 (Industrial Weekly) – Driven by the booming new energy vehicle (NEV) industry, China’s sandpaper sector is on track to reach a market scale of $11 billion by 2025, according to the latest industry forecast released by the China Abrasives and Grinding Materials Industry Association (CAGMIA). The projection comes as the country’s NEV production continues to lead the global market, with 2025 output hitting 1316.8 million units, a year-on-year increase of 38.7%, and creating unprecedented demand for high-precision sandpaper in automotive manufacturing processes.
In Hubei’s Tongcheng Sandcloth Town, a major hub for China’s abrasive materials production, factories specializing in automotive-grade sandpaper are operating at full capacity. “NEV manufacturing has raised the bar for sandpaper performance, especially in battery component processing and body surface finishing,” said Hu Ling, general manager of Hubei Zhongtian Mica Products Co., Ltd., a key supplier of abrasive materials for NEV makers including BYD and Volkswagen. “Our nanoscale precision sandpaper, used for polishing battery materials to enhance energy density, has seen order growth of over 50% year-on-year. We’ve expanded production lines by 15 units this year to meet the surging demand.”
The NEV boom has not only boosted demand but also driven technological upgrading in China’s sandpaper industry. Traditional low-grade sandpaper is being replaced by high-performance variants, such as ceramic alumina and nano-coating sandpaper, which offer higher durability and precision. Industry data shows that high-end sandpaper products now account for 35% of the domestic market, up from 22% in 2022, with NEV-related applications contributing over 60% of this growth. “NEV manufacturers require sandpaper that can handle complex materials like lightweight alloys and high-strength composites,” explained Zhang Wei, an industry analyst at CAGMIA. “This has pushed domestic enterprises to invest more in R&D, narrowing the gap with international brands.”
Overseas expansion is another growth driver for the sector. Companies like Julong (Tianjin) Abrasives Co., Ltd. have seen their sandpaper exports rise by 15% year-on-year in 2025, with their self-developed “Robtec” brand reaching 100 countries. “As Chinese NEVs gain global market share, our automotive-grade sandpaper is also entering international supply chains,” said Li Yingzhou, sales manager at Julong Abrasives. “Europe and Southeast Asia are our fastest-growing export markets, driven by local NEV production expansion.”
Policy support has further strengthened the industry’s growth momentum. China’s focus on advancing the electrification of the automotive industry, coupled with incentives for high-tech manufacturing, has encouraged sandpaper enterprises to upgrade production lines and enhance innovation capabilities. Analysts caution, however, that rising raw material costs and intense international competition remain challenges. Despite this, the sector’s outlook remains positive, with the NEV-driven growth trajectory expected to sustain beyond 2025. “The sandpaper industry is a crucial part of the NEV industrial chain,” Zhang Wei added. “As China solidifies its leading position in the global NEV market, the $11 billion target is well within reach.”
