Graphite Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, by Application : Global Opportunity Analysis and Industry Forecast, 2024-2032

Segment Overview

The graphite market is segmented into type, application, and region. On the basis of type, the market is divided into natural graphite and synthetic graphite. On the basis of application, the market is segmented into lubrication, refractories, foundry, battery production, and others. Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA

Key Market Dynamics

Increase in demand for lithium-ion batteries is expected to drive the growth of graphite market during the forecast period. The increasing adoption of electric vehicles (EVs) and renewable energy solutions is propelling a surge in the demand for graphite, primarily due to its essential role in lithium-ion batteries. Graphite serves as a key component in the anode of lithium-ion batteries, playing a critical role in the storage and release of energy. As the automotive industry undergoes a significant transformation towards electrification, with governments worldwide implementing policies to reduce carbon emissions and combat climate change, the demand for EVs continues to escalate. In March 2024, the U.S. General Services Administration (GSA) announced $25 million to enhance the electrical vehicle infrastructure worldwide. The allocation includes over $20 million initially, facilitated by the Inflation Reduction Act (IRA) , to fuel 32 projects spanning 21 states. These projects will be implemented at 33 federal buildings and will comprise 782 electrical vehicle charging ports. The primary aim is to establish a robust and accessible EV charging network to support the federal government’s electric vehicle fleet.

According to Benchmark Mineral Intelligence, about $12 billion of investment is needed by 2030 in graphite and 97 new mines are required by 2035 to meet demand. China produces 61% of global natural graphite and 98 percent of the final processed material to make battery anodes and it is expected to maintain its dominance. By 2032, China is expected to control 79% of production of a type of processed graphite uncoated spheroidised purified graphite compared to 100% in 2022.

Moreover, the expansion of renewable energy sources, such as wind and solar power, necessitates efficient energy storage solutions to address intermittency issues. Lithium-ion batteries emerge as a leading option for energy storage systems, further boosting the demand for graphite. These batteries not only power electric vehicles but also serve as storage solutions for renewable energy generated from solar panels and wind turbines.

However, environmental regulations and sustainability concerns is expected to hamper the graphite market during the forecast period. Graphite mining often involves open-pit or underground extraction methods, which can lead to habitat destruction, soil erosion, and disruption of ecosystems. Clearing land for mining activities can fragment wildlife habitats and contribute to biodiversity loss. Reclamation and rehabilitation of mined areas are essential to mitigate land degradation and restore ecosystems, but these efforts require careful planning and investment. Graphite mining and processing can contaminate water sources through the discharge of wastewater containing heavy metals, chemicals, and sedimentation. Surface runoff from mining sites may carry pollutants into nearby water bodies, affecting aquatic ecosystems and drinking water quality. Implementing effective water management practices, such as sedimentation ponds, treatment facilities, and recycling systems, is crucial to minimize water pollution and comply with regulatory standards.

Furthermore, growing use of graphite-filled filaments and powders in 3D printing is expected to provide lucrative opportunities in the graphite market forecast. Graphite-filled filaments and powders have emerged as essential materials in the realm of additive manufacturing, or 3D printing. This innovative application capitalizes on graphite's unique properties to produce components with enhanced mechanical strength, electrical conductivity, and thermal management capabilities. By incorporating graphite into the printing process, manufacturers can create parts and products that surpass traditional materials in performance and functionality. In November 2022, Axial3D, a med-tech start-up, secured a $15 million investment round, with Stratasys leading with a $10 million strategic investment. This collaboration aims to enhance accessibility to patient-specific 3D printing solutions for hospitals and medical device manufacturers, potentially making 3D printing a mainstream healthcare solution. Consequently, the increasing demand for 3D printing is anticipated to boost the graphite market.

Regional Market Outlook

By Region the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. In North America, graphite plays a pivotal role in industries such as automotive, aerospace, and electronics. The automotive sector, in particular, relies on graphite for manufacturing components such as gaskets, seals, and brake linings due to its heat resistance and lubricating properties.

In the Asia-Pacific region, graphite usage is heavily influenced by the region's robust manufacturing sector and burgeoning technological advancements. Countries such as China, Japan, and South Korea are significant consumers of graphite, primarily in steel production, automotive manufacturing, and electronics.  As of October 2023, China holds the position of the world's leading producer and exporter of graphite, as reported by Reuters. Impressively, over 90% of the global graphite undergoes refinement within China, transforming it into a crucial component for electric vehicle (EV) batteries. Graphite serves as the essential material for the anodes of these batteries, providing the necessary negative charge for their operation.

Competitive Analysis

Key market players in the graphite market include GrafTech International, Mason Resources Inc, Focus Graphite, Westwater Resources, Nippon Kokuen Group, Tokai Carbon Co., Ltd, NEXTSource Materials Inc., Triton Minerals Ltd, Asbury Carbons, and Qingdao Tennry Carbon Co., Ltd.

Industry Trends

• In April 2023, the World Steel Association released its short-range outlook (SRO) steel demand forecast for 2023 and 2024. According to the forecast, steel demand is expected to rebound by 2.3% in 2023, reaching 1, 822.3 million tons (Mt) , and to grow by 1.7% in 2024, reaching 1, 854.0 Mt. Additionally, the total global crude steel production in 2022 was 1, 878.5 Mt, marking a 4.2% decrease compared to 2021.
• As per the U.S. Geological Survey, in 2023, China was the world’s leading graphite producer, producing an estimated 77% of total world production. Approximately 15% of graphite produced in China was amorphous and about 85% was flake. In October, China announced export restrictions to take effect on December 1 on certain goods, including flake graphite, spherical graphite (natural and synthetic) , expandable graphite, and some synthetic graphite products.
• As per U.S. Geological Survey, in 2022, the U.S. around 95 companies, mainly located in the Great Lakes and Northeast regions, utilized 72, 000 tons of the graphite material, worth an estimated $140 million. The primary applications for natural graphite included batteries, brake linings, lubricants, powdered metals, refractory uses, and steelmaking. During the same year, the U.S. imported approximately 82, 000 tons of natural graphite, comprising about 77% flake and high-purity graphite, 22% amorphous graphite, and 1% lump and chip graphite.
• In October 2022, Imerys Graphite & Carbon unveiled a significant lithium exploitation initiative known as "the EMILI Project" at their Beauvoir site in the Allier département of France. This project aims to bolster Imerys' leadership and expertise in the Li-ion battery components market, complementing their existing product portfolio. The company's current offerings, which include synthetic graphite and carbon black, are produced at their facilities in Willebroek, Belgium, and Bodio, Switzerland.

Wood Chips Offer New Method to Make Graphite

CarbonScape, a pioneering company based in New Zealand, is poised to disrupt China's dominance in the graphite market, a crucial component in manufacturing electric vehicle (EV) batteries. Their innovative process involves converting wood chips into synthetic graphite at a test plant in New Zealand. The resulting material rivals the purity of graphite derived from fossil fuels, a significant achievement given its vital role in lithium-ion batteries, constituting up to half of their weight.

CarbonScape produce 1 metric ton of synthetic graphite from just 7 tons of dry wood chips.  This impressive efficiency not only highlights the superiority of their approach but also establishes a strong competitive edge against traditional fossil fuel-based methods. In contrast to conventional processes, which can span weeks and demand high temperatures, CarbonScape's method operates at lower temperatures and concludes within mere hours.

CarbonScape is now advancing towards establishing its first commercial-scale plant, with potential locations being considered in Europe and the southeastern U.S. These regions offer ample timber resources and attractive electricity prices, providing a favorable environment for scaling up production. The proposed plant aims to significantly increase output, targeting an annual production capacity of 10, 000 tons of synthetic graphite compared to the current 5-ton pilot operation.

Key Sources Referred

• National Minerals Information Center
• U.S. Geological Survey
• U.S. Department of States
• Department for Energy and Mining
• National Oceanic and Atmospheric Administration
• Graphite Health
• U.S. Department of Defense
• Department of Energy

Key Benefits For Stakeholders

• This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the graphite market analysis from 2024 to 2032 to identify the prevailing graphite market opportunities.
• The market research is offered along with information related to key drivers, restraints, and opportunities.
• Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
• In-depth analysis of the graphite market segmentation assists to determine the prevailing market opportunities.
• Major countries in each region are mapped according to their revenue contribution to the global market.
• Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
• The report includes the analysis of the regional as well as global graphite market trends, key players, market segments, application areas, and market growth strategies.