Graphite Market Analysis

Global Graphite Market Overview

Graphite Market Size was valued at USD 17.38 billion in 2023. The Graphite industry is projected to grow from USD 19.01 Billion in 2024 to USD 35.54 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.14% during the forecast period (2024 - 2032). The increasing demand for fuel-consuming aircraft and the increasing steelmaking operations are the key market drivers contributing to the market growth.Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Graphite Market Trends

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  The growing use of graphite in the steel industry drives market growth.

  
  

Market CAGR for the graphite market is driven by the rising demand for graphite in various industries. Graphite is widely used in the steel industry as a refractory material due to its high melting point and chemical inertness. It is used in the production of steel and in the manufacture of electrodes used in electric arc furnaces. The increasing demand for steel, particularly in developing countries, is expected to drive the demand for graphite in the steel industry.

Additionally, the aerospace industry is another major consumer of graphite. Graphite is used to manufacture components for aircraft and rockets due to its high strength-to-weight ratio, thermal stability, and electrical conductivity. The increasing demand for air travel and the growing commercial space industry are expected to drive the demand for graphite in the aerospace industry.

The increasing demand for lithium-ion batteries is one of the primary drivers of the graphite market. Lithium-ion batteries are widely used in electric vehicles, gaining popularity due to their eco-friendly nature and low operating costs. According to the International Energy Agency (IEA), the number of electric vehicles on the road is expected to reach 145 million by 2030, up from 11 million in 2020. This growth is expected to drive the demand for lithium-ion batteries, boosting the demand for graphite.

For instance, the graphite market is expected to grow significantly in the coming years, driven by the increasing demand for lithium-ion batteries, the growing use of graphite in the steel industry, and the increasing use of graphite in the aerospace industry. These trends are expected to create significant opportunities for players in the graphite market, including graphite miners, processors, and manufacturers driving the Graphite market revenue.

July 2023- Mining giant Rio Tinto is set to invest in Sovereign's Kasiya graphite mining project in Malawi, which has a low carbon footprint for the lithium-ion market. Sovereign Metals Limitedlately disclosed an A$40.4 million (US$27.5 million) strategic investment by Rio Tinto to take complete benefit of the Kasiya Rutile-Graphite Project in Malawi.

February 2024

Introducing a cutting-edge graphite processing facility in Collie, Western Australia, has advanced International Graphite's operations. The business expects to power downstream processes using graphite concentrate from its Springdale Graphite Project in Western Australia. This strategic step shows the company's dedication to resource optimization and regional economic prosperity.

The Springdale Graphite Project is a promising supply of graphite concentrate, the main feedstock for the new processing facility. This resource and processing integration will boost operating efficiency and the company's graphite market position.

The new processing unit produces 200 metric tons of micronized graphite yearly and cost A$12.5 million (USD 8.14 million). This capacity boosts the company's graphite processing capabilities and should match industry demand.

Micronized graphite is used to make battery anodes for electric cars and renewable energy storage systems. The fast growth of the electric car sector and the emphasis on renewable energy solutions are driving demand for high-quality graphite materials. International Graphite may profit on this growing market by creating micronized graphite.

Micronized graphite is also important in lubricants, polymers, plastics, ceramics, and refractory materials. Its flexibility and unique qualities make it a popular production material, increasing its commercial appeal.

Graphite Market Segment Insights

Graphite Application Insights

The Graphite Market segmentation, based on application, includes electrode, refractory, lubricant, foundry, and battery. The battery segment generated the most revenue due to the increasing demand for electric vehicles and portable electronic devices. Graphite is an important material in lithium-ion batteries due to its high specific capacity, low cost, and long cycle life.

Graphite Form Insights

The Graphite Market segmentation, based on form, includes natural and synthetic. The synthetic category generated the most revenue. Synthetic graphite is produced from petroleum coke and pitch coke. Synthetic graphite is superior to natural graphite in purity, strength, and consistency. Therefore, synthetic graphite is widely used in high-performance applications such as electrodes, refractories, and lubricants.

Figure 1: Graphite Market, by Form, 2022 & 2032 (USD billion)Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Graphite Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Graphite market area is expected to have significant growth in the market. The increasing demand for graphite in the automotive and aerospace industries is a major driver of the market in this region. The US is the largest consumer of graphite in North America and is expected to witness steady growth in the coming years due to the increasing use of graphite in the production of electric vehicles and the expansion of the aerospace industry. Canada is another major market for graphite in the region. It is expected to witness rapid growth in the coming years due to the increasing demand for batteries and the expansion of the steel industry.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GRAPHITE MARKET SHARE BY REGION 2022 (%) Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's Graphite market accounts for the second largest market share in the environmental market. The growing demand for graphite in the automotive and aerospace industries is a major driver of the market in this region. Further, the German Graphite market held the largest market share and is expected to witness steady growth in the coming years due to the increasing use of graphite in the production of electric vehicles. The expansion of the aerospace industry and the UK Graphite market was the fastest-growing market in the European region.

The Asia-Pacific Graphite Market will dominate the Graphite market. The country's dominance in the market can be attributed to its large reserves of natural graphite and its low-cost production methods. India is another major market for graphite in the region. It is expected to witness rapid growth in the coming years due to the growing demand for electric vehicles and the expansion of the steel industry. Moreover, China’s Graphite market held the largest market share, and the Indian Graphite market was the fastest-growing market in the Asia-Pacific region.

For instance, the graphite market is expected to witness steady growth in the coming years, driven by increasing demand for graphite in end-use industries such as electronics, automotive, and aerospace.

Graphite Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Graphite market grow even more. Market participants are also undertaking various strategic activities to spread their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The Graphite industry must offer cost-effective items to monitor and control environmental pollution and natural disasters.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Graphite industry to benefit clients and increase the market sector. In recent years, the Graphite industry has offered some of the most significant advantages to medicine. Major players in the Graphite market, including Huarui Carbon New Material Co. Ltd, Beijing Great Wall Co. Ltd. (China), Hebel Rubang Carbon Products Co. Ltd, and others, want to increase market demand by investing in research and development operations.

The Western Australia Government's Collie Futures Industry Development Fund provided A$2 million for the project, showing its support for strategic projects that boost regional economic development and innovation. This funding highlights public-private collaboration to promote sustainable development and employment growth.

International Graphite expects to get plant construction permission mid-year, allowing operations to begin. The firm will follow regulations and best practices to complete the job.

ELCORA Advanced Materials Corporation was founded in 2011, located in Canada is a vertically integrated graphite and graphene company. It mines, processes, refines graphite, and produces graphene applications. Its products include EL-I-C6 Graphite and Anode powders, EL-NP Graphite Nano-Platelets, etc. In October 2021, ELCORA Advanced Materials Corp. assigned Lab 4 Inc. to develop and produce its Tanzanian graphite mineral project. Lab 4 Inc. has over 30 years of expertise in the graphite sector and will be offering Elcora a host of graphite sector strategies, Preliminary Economic Analysis, 43-101, circuit design, pre-feasibility analysis, detailed engineering, control systems assistance in commissioning, operation, and fabrication, of graphite beneficiation units.

Imerys S.A., founded in 1880, and located in Paris, France, is a French international company specializing in producing and processing industrial minerals. It extracts and processes rocks and minerals for customers in the manufacturing and construction industries. In October 2020, Imerys announced plans to increase synthetic graphite production at its Bodio plant in Switzerland to satisfy growing demand from the lithium-ion battery market in Asia, Europe, and North America.

Key Companies in the Graphite market include

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  Huarui Carbon New Material Co. Ltd.

  
  


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  Beijing Great Wall Co. Ltd. (China)

  
  


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  Hebel Rubang Carbon Products Co. Ltd

  
  

Graphite Industry Developments

In March 2021: SGL Carbon was awarded several million in IPCEI grants for graphite anode products (GAM) in lithium-ion batteries. The SGL Carbon project aims to make revolutionary anode materials in Europe a crucial value-added step in electro-mobility.

In November 2021: Gratomic Inc. plans to acquire 100% interest in the Brazilian Graphite Exploration Project this year. With the acquisition of the Brazilian graphite project, Gratomic will be allowed to diversify the former's interests and create a large-scale graphite deposit segment at the Capim Grosso project. It will help strategically cater to the burgeoning demand for superior-quality graphite and offer a major competitive edge by reducing the risk related to business development across numerous mining-friendly locations.

In July 2023: An award-winning technology, built by an American company with help from NETL, utilizes coal waste as an anode material in lithium-ion batteries. An anode is one of two electrodes in a lithium-ion battery, usually made of graphite deposited on copper foil, with graphite representing a significant component of a lithium-ion battery's overall weight and cost. In support of an environmentally sustainable and prosperous energy future, NETL awarded X-MAT®, a division of Semplastics, USD 1 million in 2020 for a three-year project to build polymer-derived ceramic composite anodes.

Graphite Market Segmentation

Graphite Form Outlook

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  Natural

  
  


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  Synthetic

  
  

Graphite Application Outlook

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  Electrode

  
  


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  Refractory

  
  


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  Lubricant

  
  


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  Foundry

  
  


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  Battery

  
  

Graphite Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America