Graphite Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Graphite Market is segmented By Type (Natural Graphite, Synthetic Graphite) By Application (Lubrication, Refractories, Foundry, Battery Production, Others) and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Market Overview

Global Graphite Market reached US$ 23.8 billion in 2023 and is expected to reach US$ 38.5 billion by 2031, growing with a CAGR of 6.2% during the forecast period 2024-2031.

The development and expanding production of new lubricants for various industrial applications will be a key factor in increasing the demand for . New improvements in graphite-based compound materials are being investigated for increasing the efficiency of the next generation of electric vehicle batteries.

The long term growth for the global graphite market could be potentially hampered by the concentration of graphite production in China. It has already given China undue leverage in influencing the global market and an export ban by China could suddenly lead to widespread shortfall in graphite supply.

Market Scope

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Market Dynamics

Growing Production of Electric Vehicles (EVs)

We expect that generous government subsidies and incentives will accelerate the shift towards the adoption and production of electric vehicles. In 2022, global electric vehicle production surpassed 10 million units for the first time. Furthermore, many automotive manufacturers are contemplating a complete shift towards electric vehicles starting from 2035. 

Lithium-ion remains the most preferred battery chemistry for EVs given their high energy density and longer operational lifespan. As such, graphite is the most favored material used of the production of electrodes in lithium-ion batteries. With rising demand, companies are investing in capacity expansion to ramp up production of battery materials. 

For instance, in March 2023, ENTEK International, a U.S.-based battery engineering company announced a US$ 1.5 billion investment in building a new battery materials factory in Terre Haute, Indiana, U.S. The growth in EV production will spur the demand for graphite during the forecast period.

Rising Global Demand for Steel

According to OECD data, the global steel demand exceeded 2,498 million metric tons in 2023, topping off a third straight year of growth. The surge in steel demand is mainly due to growing industrialization of the Asia-Pacific, rising infrastructure development and improving consumer sentiment on the back of a stronger recovery from the COVID-19 pandemic. 

Countries such as India are already increasing the steel production capacity in growing anticipation of future demand. For instance, ArcelorMittal is planning to open the world’s largest steel production facility at Hazira, in western India, by 2029. Modern electric steel furnaces utilize graphite electrodes, therefore, an increase in global steel demand will consequently raise the demand for graphite.

Increased Price Volatility

The price of the chief precursor material used in graphite production, needle coke has witnessed increased fluctuation in recent due to factors such as mismatched supply and demand dynamics, geopolitical developments, changes in government economic regulations and the overall global economic conditions.

Volatility in the prices of raw materials can create significant upward pricing pressures for graphite producers. Abrupt volatility in raw material prices has often resulted in higher production costs and erosion in the profit margins of most producers. To offset the increase in costs, graphite producers often raise the prices of electrodes, making them less competitive in the market. 

Segment Analysis

The global graphite market is segmented based on type, application and region.

Automotive Battery Production will Account for a Major Market Share

Currently the biggest demand for graphite is for the production of graphite electrodes used in the production of lithium-ion batteries, mainly used as a power source in modern electric vehicles. New advancements in lithium-ion battery technology will further augment the demand for graphite. 

For instance, by utilizing 15% of graphite with Ionisil in a water-based binder system, the resulting electrodes exhibit much higher conduction capacity as compared to a traditional electrode made from pure graphite. Such improvement in production capacity will further boost the adoption of electric vehicles. 

Geographical Penetration

Asia-Pacific to Garner the Largest Market Share

The electrification of passenger vehicles segment in China remains the chief factor behind the high share of Asia-Pacific in the global market. China has emerged as the largest manufacturer of electric vehicles globally, accounting for nearly 60% of the global production in 2022. The sale of new EVs in China has shot up by 82% in 2022 over the previous year. Many Chinese EV makers are currently looking for ways to increase their exports to new overseas markets. 

Being the largest graphite producer grants China an inherent advantage in the race of passenger vehicle electrification. Most local manufacturers are also aided by lower energy costs and government subsidies. As Chinese EV makers have continued the development of new battery chemistries to improve the range and performance of the next generation of electric vehicles. A such, China will continue to generate a disproportionately large demand for graphite during the forecast period.

COVID-19 Impact Analysis

The pandemic created many challenges for the global graphite market. Due to a visible crash in demand from major end-user industries such as lubricant and battery manufacturers, the graphite market experienced a relatively steep decline during the early phase of the COVD-19 pandemic through 2020.

With the partial lifting of pandemic lockdown restrictions, many producers began to aggressively increase production in anticipation of a spike in demand. However, total demand recovery would not occur until early 2022, since lingering supply chain disruptions complicated the ability of manufacturers to fulfill the growing demand.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine resulted in steep increase in energy prices, especially in Europe, creating an upheaval in the global graphite market. Therefore, China, which was the largest graphite producer before the war, further consolidated its position in the global market, as more companies exited European manufacturing operations.

The sanctions imposed on Russia also led to a collapse in exports of its graphite production. Many Russian graphite producers had to seek parallel export systems by relying on the international grey market. Many Russian graphite producers actually benefited due to the weakening of Russia’s currency and a overall increase in global graphite prices.

Key Developments

• In February 2024, Westwater Resources, a U.S. based company specializing in the production of natural graphite, announced a 25% increase in graphite production at its facility in Alabama, U.S. 
• In December 2023, Graphite India, an Indian producer of graphite, announced a 31% stake purchase in Godi India, a battery materials manufacturer. 
• In January 2024, CarbonScape (CS). A New Zealand-based startup announced plans to commercialize its proprietary process of manufacturing synthetic graphite from woodchips.

Competitive Landscape

The major global players in the market include GrafTech International, Graphite India Limited, Nippon Graphite Industries Co. Ltd, Tokai Carbon, HEG Limited, Energizer Resources Inc., Focus Graphite Inc., Showa Denko K.K., Sangraf International and Amg Advanced Metallurgical Group N.V.

Why Purchase the Report?

• To visualize the global graphite market segmentation based on type, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of pouch tapes market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global graphite market report would provide approximately 50 tables, 43 figures and 183 Pages.

Target Audience 2024

• Battery Component Manufacturers
• Lubricant Manufacturers
• Commodity Trading Companies
• Industry Investors/Investment Bankers
• Research Professionals