The global Graphite Market is estimated to be valued at USD 17.74 billion in 2024, exhibiting a CAGR of 6.5% over the forecast period (2024-2031). The graphite demand is driven by its growing usage in lithium-ion batteries as well as expanding foundry and refractory industries. Furthermore, the rising adoption of electric vehicles will further propel the market growth in the coming years.
The global graphite market is driven by the increasing demand for lithium-ion batteries as well as growth in foundries and refractories industries. Lithium-ion battery usage has grown exponentially over the past decade due to the widespread adoption of portable consumer electronics and electric vehicles. Graphite in the form of graphite anode is the primary raw material in lithium-ion battery production. Similarly, foundry and refractory industries also utilize graphite as it can withstand high temperatures without melting and significantly increasing its usage. The growing end-use industries will continue to drive the demand for graphite over the forecast period. Additionally, expanding electric vehicle production and sales also provide opportunities for graphite suppliers to tap into over the coming years.
Increase in demand for lithium-ion batteries
One of the major drivers for the global graphite market is the rise in demand for lithium-ion batteries. Graphite is the key anode material used in lithium-ion batteries which power devices such as laptops, smartphones, electric vehicles, etc. With the growing popularity of consumer electronics and electric vehicles, the need for high-performance lithium-ion batteries has increased substantially. This increase in battery demand directly translates to higher demand for graphite as most lithium-ion batteries still use natural or synthetic graphite as the anode material. Several analysts predict that lithium-ion battery production will grow at over 15% annually in the coming years to meet the needs of EVs, energy storage systems, etc. This rapid growth in batteries is expected to propel the graphite market upwards.
Rising steel production driving demand for graphite electrodes
Another major driver of the graphite market is increasing steel production globally which is positively impacting the demand for graphite electrodes. Graphite electrodes are crucial for electric arc furnaces used widely in steel manufacturing. As steel production continues to grow across regions like China, India, Europe, and North America to meet construction and infrastructure needs, there is a proportional rise in graphite electrode consumption. This consistent growth in the steel industry is anticipated to boost the demand for graphite electrodes and benefit graphite producers.
Stringent environmental regulations
One key restraint affecting the graphite market expansion is tightening environmental norms around mining and processing facilities. Graphite mining and production can release toxic pollutants into the air and water bodies if not handled carefully. There is growing scrutiny on graphite companies to adopt greener practices and reduce pollution. The complex extraction and refining procedures also generate huge amounts of hazardous sludge and waste which need scientific disposal. Stricter emission rules in many countries have increased operational costs for graphite firms. Developing eco-friendly extraction technologies can help graphite players overcome this challenge.
Availability of substitute materials
Substitution risk from alternative anode materials is another restraint on the graphite market. While natural and synthetic graphite currently dominates the lithium-ion battery anode segment, R&D is ongoing in silicon and graphene-based replacements. These new materials provide higher energy density and faster charging benefits. Though commercialization challenges remain, successful substitution even for a small part of the anode market can take a toll on graphite consumption. Graphite producers must focus on strengthening performance advantages to defend their market position against substitutes. Cost competitiveness is also critical to negate any substitution threat.
Emerging energy storage applications
One major opportunity area for the graphite market is its increasing role in energy storage solutions beyond batteries. As renewable sources like solar and wind gain traction globally, large-scale and reliable energy storage systems are becoming important to deal with intermittent supply. Graphite plays a role in technologies such as flow batteries, solid-state batteries, and large lithium-ion batteries deployed for grid-level storage. The fast-growing energy storage market presents a multi-billion-dollar chance for graphite manufacturers. With continuous R&D, graphite usage can be expanded across diverse energy storage devices.
Rising demand in the nuclear industry
Another key opportunity for graphite producers lies in expanding the nuclear sector demand. Graphite is utilized in several applications within nuclear power generation such as moderators, reflectors, and shielding components. With many countries ramping up nuclear capacity and next-gen technologies like molten salt reactors emerging, there will be a steady requirement for high-purity nuclear grade graphite. Its non-corrosive properties also make it suitable for new small modular nuclear reactor designs. The nuclear renaissance worldwide presents a long-term opportunity to boost graphite sales if producers proactively develop supplies as per nuclear industry needs and regulations.
Link - https://www.coherentmarketinsights.com/market-insight/graphite-market-1563
Key Developments:
- In June 2024, Haier introduced a new line of graphite refrigerators featuring sleek matte finish steel doors. This innovative design not only enhances the aesthetic appeal of modern kitchens but also offers durability and ease of maintenance.
- In 2022, Syrah Resources Ltd. announced a significant agreement to supply a crucial component for lithium-ion batteries to South Korea's LG Energy Solution Ltd. Under this partnership, Syrah is set to provide 2 kilotons per annum of graphite for LG's active anode material (AAM) starting in 2025.
- In 2021 AMG Advanced Metallurgical Group N.V. announced that AMG Brasil S.A. (“AMG Brazil”) has entered into an Exclusive Cooperation Agreement (“ECA”) with one of its major customers for lithium concentrates.
- In 2021, Toyo Tanso at participated FC EXPO 2021 September (1st Int'l Hydrogen & Fuel Cell Expo). FC EXPO is world's largest show for hydrogen & fuel cell.
Key Player:
Asbury Carbons, BTR New Material Group Co.,Ltd., Imerys, Eagle Graphite, Mason Graphite Inc, Nippon Kokuen Group, Northern Graphite Corp., SGL Carbon, EPM Group, Shenzhen Xiangfenghua Technology Co., Ltd., Showa Denko K.k., Syrah Resources Limited, Tokai Carbon Co. Ltd., Triton Minerals, Betterui New Materials Group Co. Ltd, GrafTech International Ltd., Linyi Yanjun Carbon Material Co., Ltd., Jilin Carbon New Material Co., Ltd., Hebei Hang Carbon, and Graphite India Limited
