Graphite Market

Graphite Market Analysis By Product Type (Natural Graphite, Synthetic Graphite), by Application (Electrodes, Refractories & Foundries, Batteries, Recarburisers, Lubricants, Friction Products) – Global Insights 2023 to 2033

Analysis of Graphite Market Covering 30+ Countries Including Analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more

Graphite Market Growth Outlook (2023 to 2033)

Based on the analysis by Fact.MR, the global graphite market is valued to be US$ 25.9 billion in 2023 and it is expected to grow at a CAGR of 8.5% to reach US$ 58.6 billion by the end of 2033.

The increasing demand for lithium-ion batteries used in electric vehicles (EVs), portable electronics, and renewable energy storage, is likely to drive the demand for graphite. Graphite is a crucial component of these batteries, as it is used in the anode material to store and release lithium ions during charge and discharge cycles. As the EV market expands and renewable energy installations increase, the demand for graphite is expected to continue growing.

Report Attributes Details

Graphite Market Size (2022A)

US$ 23.9 Billion

Estimated Market Value (2023E)

US$ 25.9 Billion

Forecasted Market Value (2033F)

US$ 58.6 Billion

Global Market Growth Rate (2023-2033)

8.5% CAGR

North America Market Size (2023)

US$ 5.1 Billion

Key Companies Profiled

  • Aoyu Graphite Group
  • Hunan Zhongke Shinzoom Technology Co., Ltd.
  • Mitsubishi Chemical
  • Nippon Graphite Industries, Ltd.
  • Qingdao Haida Graphite Co., Ltd.
  • Shanshan Technology
  • Showa Denko Materials Co. Ltd.

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Historic and Future Pathway Analysis for the Graphite Market

Graphite is a versatile and valuable mineral that has various applications across several industries. It is composed of carbon atoms arranged in a hexagonal lattice structure, providing it with unique properties such as high thermal and electrical conductivity, low friction, and chemical stability.

  • Short Term (2023-2026): The increasing demand for electric vehicles (EVs), portable electronics, and renewable energy storage has led to a surge in the production of lithium-ion batteries. Graphite is a critical component in the anode of these batteries, and as the adoption of EVs and renewable energy systems expands, the demand for graphite is expected to grow significantly.
  • Medium Term (2026-2029): Graphite is used as a recarburizer in the steel industry to enhance the carbon content during steel production. The growth of the steel industry, particularly in emerging economies, is driving the demand for graphite.
  • Long Term (2029-2033): Ongoing research and development efforts to improve the performance and cost-effectiveness of graphite-based materials are likely to drive market growth in the long run. This includes advancements in battery technologies, composite materials, and production processes.

According to the Fact.MR, a market research and competitive intelligence provider, the market is projected to exhibit growth at 8.5% CAGR between 2023 and 2033.

Market Dynamics Outlook

“Harnessing Graphite's Unique Properties in the Chemical Industry”

The growing chemical industries have a significant impact on driving the growth of the graphite market. With the global chemical industry being a US$ 4 trillion enterprise that touches virtually every sector of the economy, the demand for graphite continues to rise. This is because over 95% of manufactured goods are directly influenced by chemistry, and graphite is a crucial material in various chemical processes and applications.

Graphite finds extensive use in the chemical industry due to its unique properties. It is chemically inert, resistant to high temperatures and corrosion, and has excellent thermal conductivity. These characteristics make graphite an ideal material for the construction of chemical reactors, vessels, and heat exchangers. It provides excellent thermal stability and resistance to corrosive chemicals, making it suitable for handling a wide range of chemical processes.

“Factors Restraining Graphite Market Growth”

Graphite production is influenced by the prices of raw materials such as petroleum coke and natural graphite. Fluctuations in these input prices impact the profitability of graphite manufacturers and affect the overall market growth.

Graphite faces competition from alternative materials such as carbon fibers, ceramics, and other advanced composites. These substitutes offer comparable or superior properties and are preferred in certain industries, thereby limiting the demand for graphite.

The lack of standardization in graphite products also poses challenges for end-users in terms of quality consistency and compatibility with their specific applications. This creates additional costs and complexities for consumers, potentially hindering market growth.

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Country-wise Insights

How Turkiye is becoming a Prominent Market for Graphite Manufacturers?

The growing demand for electric vehicles (EVs) in Turkey, for instance, as driving has become more expensive due to rising gas prices, more Turkish drivers are switching to electric cars.

  • Turkiye's gasoline costs nearly doubled over the past few years, forcing car owners to devote a larger portion of their income to commuting. The average monthly cost of gasoline for a car that drives 500 kilometers on city streets is around US$ 247.0, while an electric car owner must pay US$ 40.2 to cover the cost of the vehicle's energy.
  • Hence, owing to this the demand sales for electricity amplified. For reference, a total of 6,124 electric vehicles were sold in Turkiye from January to November 2022, a 157% increase from the same period in 2021.

With the growing electric vehicle demand in Turkiye, the demand for graphite is likely to increase, as graphite is a key component in the anode (negative electrode) of lithium-ion batteries used in electric vehicles.

The anode typically consists of graphite in the form of a carbon-based material, which can store and release lithium ions during the battery's charging and discharging cycles. As the demand for EVs increases in Turkey, so does the need for lithium-ion batteries, consequently driving the demand for graphite as a raw material.

Why does U.S Market increase their demand for Graphite?

As the need for graphite in the battery industry increases, major market players in the United States are building an integrated supply chain to meet the growing demand for graphite. Demand for graphite is increasing as the use of lithium-ion batteries in the United States increases.

The US Geological Survey (USGS) data release includes descriptions of 10 locations in the United States that contain mineralized areas, mineral occurrences, and mines that contain enriched graphite.

Graphite is used in batteries, brake linings, lubricants, metal powders, refractory applications, and steelmaking. Thus increasing investment in battery grid storage and other applications is expected to boost graphite use in these areas and thus lead to an increase in the demand for graphite in the coming years.

Category-wise Insights

Why the demand for Synthetic Graphite is High?

Synthetic graphite is typically produced through the graphitization of carbon precursors such as petroleum coke or coal tar pitch. This process allows for greater control over the final product's purity and structure. Synthetic graphite has a more consistent and predictable quality, making it preferred for applications that require specific performance characteristics.

Synthetic graphite also has a higher carbon content than natural graphite, which typically contains impurities like mineral deposits and other elements. The higher carbon content of synthetic graphite makes it ideal for applications that require high thermal and electrical conductivity, such as in lithium-ion batteries, fuel cells, and electrical arc electrodes.

Further, some high-tech applications, such as aerospace, nuclear, and electronics industries, demand materials with exceptional properties. Synthetic graphite meets these stringent requirements due to its controlled production process, allowing for precise tuning of properties like strength, density, and thermal expansion.

Why are Refractories and Foundries Gaining Traction?

Graphite is widely used in the manufacturing of crucibles and refractory linings in foundries. Crucibles made from graphite are capable of withstanding high temperatures and corrosive environments, making them essential for melting metals and alloys. Refractory linings, which are used to protect furnaces and other high-temperature equipment, also often contain graphite due to its heat resistance and thermal conductivity.

Refractories and foundries require effective thermal insulation to optimize energy efficiency and maintain high-temperature environments. Graphite is an excellent thermal insulator due to its low thermal conductivity. It helps in reducing heat loss, improving energy efficiency, and ensuring stable operating conditions in these industries.

Also, graphite is utilized in the production of ladles and molds used in foundries. Ladles, which are used to transfer molten metal, benefit from graphite's high-temperature resistance and ability to reduce metal reactions, ensuring the quality of the poured metal. Graphite molds are favored for their ability to withstand high temperatures and provide dimensional accuracy in the casting process.

Know thy Competitors

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Eminent Players Key Stratagems

Prominent graphite manufacturers are Aoyu Graphite Group, Hunan Zhongke Shinzoom Technology Co., Ltd., Mitsubishi Chemical, Nippon Graphite Industries, Ltd., Qingdao Haida Graphite Co., Ltd., Shanshan Technology, and Showa Denko Materials Co. Ltd.

The market manufacturers of graphite are increasing their production capacity and collaborating with the native market players to increase their customer base and profit margin. For instance,

  • In June 2022, Mitsubishi Chemical Holdings Group (MCHG) increase the production capacity of natural graphite anode material from 2,000 tons/year to 12,000 tons/year at its Chinese subsidiary Qingdao Anode Kasei and affiliated company Qingdao Lingda Kasei. The production line is scheduled to start operation in the first half of fiscal 2023.

Fact.MR has provided detailed information about the price points of key manufacturers of graphite positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Graphite Industry Research

  • Graphite Market by Product Type :

    • Natural
      • Flakes
      • Amorphous
      • Veins
    • Synthetic
  • Graphite Market by Application :

    • Electrodes
    • Refractories & Foundries
    • Batteries
    • Recarburisers
    • Lubricants
    • Friction Products
    • Others
  • Graphite Market by Region :

    • North America
    • Latin America
    • Europe
    • East Asia
    • South Asia & Oceania
    • Middle East & Africa

- FAQs -

The global graphite market size reported by Fact.MR for 2022 was US$ 23.9 billion.

The global graphite market size is estimated to reach US$ 58.6 billion in 2033.

The projected CAGR for the graphite market from 2023 to 2033 will be 8.5%.

Market players include Mitsubishi Chemical, Nippon Graphite Industries, Ltd., and Qingdao Haida Graphite Co., Ltd. which are majorly operating and dominating in the market.

Factors such as growing demand for graphite from the expanding battery industry and automotive industry are anticipated to increase the sales growth of graphite.

Graphite Market

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