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2020

Graphite Market

Graphite Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type and Application : Global Opportunity Analysis and Industry Forecast, 2019-2027

MC : Bulk Chemicals

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Author's: Krunal Yeware | Eswara Prasad
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Graphite Market Outlook - 2027

The global graphite market was valued at $14.3 billion in 2019, and is expected to reach $21.6 billion by 2027, registering a CAGR of 5.3% from 2020 to 2027.

Report Key Highlighters:

  • The graphite market study covers 20 countries. The research includes a segment analysis of each country in terms of both value ($million) and volume (tons) for the projected period 2019-2027.
  • The study integrated high-quality data, professional opinions and analysis, and critical independent perspectives. The research approach is intended to provide a balanced view of global markets and to assist stakeholders in making educated decisions in order to achieve their most ambitious growth objectives.
  • Over 3,700 product literature, annual reports, industry statements, and other comparable materials from major industry participants were reviewed to gain a better understanding of the market.
  • The graphite market is highly fragmented, with several players including Triton Minerals Limited, Showa Denko K.K., Graftech International Holding, Nippon Graphite Industries Co., Ltd., Tokai Carbon Co., Ltd., Focus Graphite, Inc., Westwater Resources, Inc., Nextsource Materials, Inc., Northern Graphite Corporation, and Mason Graphite, Inc. Other players in the value chain of the graphite market include Graphite India Limited, CM Carbon, Huarui Carbon New Material Co. Ltd., Beijing Great Wall Co. Ltd., Hebbel Rubang Carbon Products Co. Ltd., and others. Also tracked key strategies such as acquisitions, product launches, mergers, expansion etc. of the players operating in the graphite market.

Graphite is a mineral of carbon used in various applications such as electrical vehicle, refractories, foundry, lubricating agent, construction applications, and others. The increasing use of graphite in the above-mentioned industries is owing to its several advantages such as reduces wear, easy to machine, thermal shock resistant, high metal removal rate, and others. Graphite is a non-metal but possess metallic properties such as high stiffness, strength, good conductor of electricity & heat, and others. There are two different forms of graphite, which include natural graphite and synthetic graphite.

Graphite-Market-2020-2027

The global graphite market is driven by the high demand for lithium ion battery industry and significant steel production through graphite electrode electric arc furnace.

Increasing Demand from Steel Industry, and Energy Storage Systems

The global graphite market is driven by the high demand for lithium ion battery industry. Graphite electrodes are widely used in electric arc furnaces for steel production. These electrodes provide high heat resistance and conductivity, making them essential for the steel industry. The demand for steel, particularly in developing countries, impacts the graphite market.

The rising demand for electric vehicles is a significant driver for the graphite market. Graphite is a crucial component in lithium-ion batteries used in EVs, particularly in the anode. As the adoption of electric vehicles continues to grow, the demand for graphite is expected to increase. Besides EVs, graphite is also used in energy storage systems, including grid-scale batteries and portable electronic devices. As renewable energy sources such as solar and wind gain popularity, the need for efficient energy storage solutions increases, driving the demand for graphite.

Graphite finds application in various industrial sectors, including aerospace, automotive, electronics, and construction. It is used as a lubricant, thermal and electrical conductor, and as a component in refractory materials. The growth and development of these industries influence the demand for graphite. Ongoing research and technological advancements lead to the development of new applications for graphite. For example, advancements in graphene, a form of graphite, have opened up opportunities in electronics, energy storage, and other high-tech industries. These advancements contribute to the overall demand for graphite.

The increasing focus on sustainability and environmental regulations affects the graphite market. The graphite mining and processing industry must adhere to environmental standards to minimize its ecological impact. Compliance with these regulations can influence the overall supply and cost of graphite.

Environmental Concern and Substitution Threats Hinder the Market Growth

However, increase in export duty on graphite in China and decreasing price trend of natural graphite are the key factors that restrain the growth of the graphite market during the forecast period.

The graphite mining and processing industry can have environmental impacts if not managed properly. The extraction process and waste disposal can lead to soil and water contamination. Concerns about the environmental footprint of graphite production can result in stricter regulations and higher compliance costs. Graphite faces potential substitution threats from alternative materials or technologies. For example, advancements in battery technology may lead to the development of alternative materials for lithium-ion batteries, reducing the demand for graphite in the long run.

Infrastructure projects, such as transportation networks, industrial facilities, and renewable energy installations, drive the demand for steel and other construction materials. Graphite, in the form of refractories and lubricants, plays a role in various infrastructure applications. Increased infrastructure investments can create opportunities for graphite suppliers. Continued advancements in graphite processing and purification technologies can enhance the quality and purity of graphite products. Improved production processes can lead to cost reductions, increased efficiency, and better product performance, attracting more consumers and expanding market opportunities.

The increasing focus on sustainability and responsible sourcing provides an opportunity for graphite companies to differentiate themselves. Adopting environmentally friendly mining practices, ensuring ethical supply chains, and obtaining certifications for responsible sourcing can attract environmentally conscious consumers and investors. As the need for efficient energy storage systems continues to rise, graphite has a promising opportunity. Graphite can be used in grid-scale batteries, portable electronic devices, and renewable energy storage applications. Developing innovative graphite-based energy storage solutions can unlock new opportunities for market players. Moreover, growth in usage in green technologies and merger & acquisitions activities are anticipated to provid elucrative growth opportunities for the key players to maintain the position in the market in the upcoming years.

The global graphite market is segmented on the basis of type, application, and region. Depending on type, the market is bifurcated into natural graphite and synthetic graphite. The natural graphite segment is further sub-categorized into flake graphite, amorphous graphite, and vein graphite. The synthetic graphite segment is further classified into graphite electrode, graphite block, carbon fiber, graphite powder, and others. Based on 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.

The graphite market covers in-depth information of the major industry participants . Some of the major players in the market include Triton Minerals Limited, Showa Denko K.K., Graf tech International Holding, Nippon Graphite Industries Co., Ltd., Tokai Carbon Co., Ltd., Focus Graphite, Inc., West water Resources, Inc., Next source Materials, Inc., Northern Graphite Corporation, and Mason Graphite, Inc.

Other players in the value chain of the graphite market include Graphite India Limited, CM Carbon, Huarui Carbon New Material Co. Ltd., Beijing Great Wall Co. Ltd., Hebbel Rubang Carbon Products Co. Ltd., and others.

The key players are adopting numerous strategies such as product launch, business expansions, acquisition, agreement, and other developments to stay competitive in the market.

For instance, Trition Minerals Limited signed an agreement with Suzhou Sinoma Design and Research Institute of No-metallic Minerals Industry Co. Ltd., Suzhou is a subordinate of China National Building Material Group’s. Suzhou is a graphite testing company located in China. This agreement aimed at providing technical consulting services such as graphite production technology, graphite quality, and production line equipment.

In addition, West water Resources launched a new product known as “Purified Micronized Graphite (PMG)”. PMG is utilized as a conductivity enhancer for non-rechargeable, rechargeable lithium ion batteries, alkaline power cells, and other acid battery applications. This product launch had made the company the only U.S.-based graphite company that is targeting all major commercial battery types and also strengthened the product portfolio of the company.

Graphite Market, by Type

By type, the synthetic graphite segment holds the largest market share, owing to increase in demand from the steel and battery industry. This increase in demand from the steel and battery manufacturing industry is attributed to increase in use of graphite electrode. Synthetic graphite is expected to maintain its dominance during the forecast period.

Graphite Market
By Type
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Synthetic Graphite is projected as the most lucrative segment.

Graphite Market, by Application

On the basis of application, the refractories segment has garnered the highest market share. This is attributed to increase in demand from the steel industry as graphite electrode is increasingly used in the electric arc furnace steel making .Moreover, rise in demand for graphite to produce crucibles, ladles, and molds to hold molten metal boosts the growth of the market during the forecast period

Graphite Market
By Application
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Refractories is projected as the most lucrative segment.

Graphite Market, by Region

Asia-Pacific has garnered the highest market share in 2019, in terms of volume as well as revenue ,and is anticipated to maintain its dominance throughout the forecast period. This is attributed to the presence of key players and huge consumer base in the region. In addition, more than 40% of the total market share in terms of value is from the highest graphite production countries such as China, India, and Japan.

Graphite Market
By Region
2027
Asia-pacific 
North America
Europe
LAMEA

Asia-Pacific holds a dominant position in 2019 and would continue to maintain the lead over the forecast period.

Covid-19 Impact On Graphite Market

  • The global graphite market faced supply chain disruptions due to restrictions on international trade, temporary shutdowns of mines and processing facilities, and logistic challenges. These disruptions affected the availability of graphite, leading to delays in deliveries and increased prices for certain grades and forms of graphite.
  • The pandemic caused a slowdown in several industries, including automotive, aerospace, and construction, which are significant consumers of graphite. The reduced demand in these sectors impacted the overall demand for graphite products.
  •  The electric vehicle (EV) market experienced a decline in sales during the early stages of the pandemic due to lockdowns and economic uncertainties. This decline had a short-term impact on the demand for graphite used in EV batteries. However, the EV market has shown resilience and recovered quickly, with many countries implementing stimulus measures to promote EV adoption. As a result, the long-term impact on the graphite market is expected to be positive.
  • The pandemic highlighted the importance of sustainable and clean energy sources. Governments and businesses accelerated their focus on renewable energy projects, including solar and wind power. Graphite is used in energy storage systems for renewable energy, and the increased emphasis on these projects provided a positive impact on the graphite market.
  • Graphite is used in various medical applications, including batteries for medical devices and electrodes for diagnostic equipment. The healthcare sector witnessed increased demand during the pandemic, leading to a corresponding rise in the demand for graphite in certain medical applications.
  • The underlying factors driving the graphite market, such as the transition to clean energy, the growth of EVs, and technological advancements, remain intact despite the short-term disruptions caused by the pandemic. These long-term growth drivers are expected to continue supporting the graphite market's expansion in the post-pandemic period.

Key Benefits For Stakeholders

  • The report provides an extensive qualitative and quantitative analysis of the current graphite market trends and future estimations of the global graphite market from 2020 to 2027 to determine the prevailing opportunities.

  • A comprehensive analysis of the factors that drive and restrict the growth of the graphite market is provided.

  • Estimations and forecast are based on factors impacting the graphite market growth, in terms of both value and volume.

  • Profiles of leading players operating in the graphite market are provided to understand the global competitive scenario.

  • The report provides extensive qualitative insights on the significant segments and regions exhibiting favorable market growth.

Graphite Market Report Highlights

Aspects Details
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By Type
  • Natural Graphite
    • Amorphous Graphite
    • Flake Graphite
    • Vein Graphite
  • Synthetic Graphite
    • Graphite Electrode
    • Carbon Fiber
    • Graphite Block
    • Graphite Powder
    • Others
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By Application
  • Lubrication
  • Refractories
  • Foundry
  • Battery Production
  • Others
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (Germany, France, UK, Spain, Italy, Rest of Europe)
  • Asia-Pacific  (China, India, Japan, Australia, South Korea, Rest of Asia-Pacific)
  • LAMEA  (Brazil, Saudi Arabia, South Africa, Rest of LAMEA)
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Key Market Players

WESTWATER RESOURCES INC., NIPPON GRAPHITE INDUSTRIES CO. LTD., TRITON MINERALS LIMITED, NEXT SOURCE MATERIALS INC., GRAF TECH INTERNATIONAL HOLDINGS INC., SHOWA DENKO K.K., FOCUS GRAPHITE INC., MASON GRAPHITE INC., TOKAI CARBON CO. LTD., NORTHERN GRAPHITE CORPORATION

Analyst Review

As per the CXO of the leading companies, the global graphite industry is heading toward growth expansion phase in industry life cycle wherein the market is anticipated to witness profitable growth opportunities in the coming decade. Graphite is an active anode material and is also third largest battery material in terms of mass, meaning that battery manufacturing is largely influencing the graphite usage across the globe. Graphite is mostly suitable in lithium-ion battery technology due to its compatibility with lithium-ion. Therefore, high adoption of lithium-ion battery is a key factor that drives the growth of this market. The CXOs further added that this growth is anticipated to explode as the electric vehicle boom is picking momentum and adoption of lithium-ion battery is expected to multiply in the next decade.  

The prices of natural graphite have drastically decreased over the past couple of years from 2.5 $/kg to 1.2 $/kg. As a result, the nature of this segment seems like high volume-low value. The impact of this scenario can be seen in lithium-ion battery cost reduction campaign. As lithium-ion battery manufacturers are focusing on overall battery cost reduction, natural graphite is savior for these manufacturers. Furthermore, demand for synthetic graphite has triggered in battery production application.

The other side of the growth of this market is directly linked to industrial applications, such as refractories and lubricants. Refractories for the steel industry remain the dominant market for natural graphite consumption, and graphite production tends to follow global steel production. In particular, accelerating demand for steel and other metals will benefit synthetic graphite electrodes, which are essential for electric arc furnace steel production and synthetic graphite.

China emerged as the global leader in the graphite market both in terms of volume and value and is single handedly impacting the momentum of the global graphite market. This is largely credible to high automotive production and resulting requirement of electric vehicle batteries, and China’s dominance in steel manufacturing. As a result, China is turning out to be an attractive market for graphite investor.

Author Name(s) : Krunal Yeware | Eswara Prasad
Frequently Asked Questions?

In terms of revenue growth, the CAGR of the global graphite market is 5.3% by 2027.

High demand from Li-ion battery production and Significant steel production through electric arc furnaces are the key factors anticipated to drive the graphite market.

The potential customers of the graphite market are automotive, power, construction, refractories and others.

On the basis of type, synthetic graphite will drive the graphite market growth during the forecast period. On the basis of application, refractories segment will drive the growth of the graphite market.

The applications of the graphite market are refractories, foundry, battery production, lubrication, pencils, paints, gasket & foils and others.

Top players in the graphite market are Triton Minerals Limited, Showa Denko K.K., Graf tech International Holding, Nippon Graphite Industries Co., Ltd., Tokai Carbon Co., Ltd., Focus Graphite, Inc., West water Resources, Inc., Next source Materials, Inc., Northern Graphite Corporation, and Mason Graphite, Inc.

In terms of revenue, the market size of graphite market is anticipated to reach $21.6 billion by 2027, growing at CAGR of 5.3% from 2020 to 2027.

The company profiles of the global graphite market have been selected on the basis of in depth product portfolio, wide geographic reach, and key industry developments.

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Graphite Market

Global Opportunity Analysis and Industry Forecast, 2019-2027