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Graphite Market

Graphite Market

Graphite Market Analysis By Product Type (Natural Graphite, Synthetic Graphite), by Application (Electrodes, Refractories & Foundries, Batteries, Recarburisers, Lubricants, Friction Products) – Global Insights 2021-2031

Graphite Market
FACT7003MR

Graphite Market Outlook

The global graphite market is anticipated to surge at a CAGR of 8.5% over the period of 2021 to 2031, due to high investments in the development of newer technologies to support EV manufacturing, and graphite is a vital cathode material that is used in EV batteries.

Overall, the market is slated to expand 2.3X over the next ten years, thereby offering immense opportunities to market participants.

Augmenting demand from the developing lithium-ion (li-ion) battery industry as well as rise in steel production in Asia and the Middle East are primary factors set to drive market growth in the short term. On the other hand, discovery of substitute anode materials for lithium-ion batteries in high-end applications, strict environmental laws, and impact of the COVID-19 outbreak are all predicted to stifle growth of the global graphite market to some extent.

This study by Fact.MR, a market research and competitive intelligence provider, throws light on market risks, in-detail study of technological aspects, techno-economic strongholds, and other business aspects. 

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Graphite Industry Report Scope

Attribute Details
Market Size Value in 2021 USD 22 Billion
Market Forecast Value for 2031 USD 50 Billion
Global Growth Rate CAGR 8.5%
North America Market Size in 2021 USD 4.7 Billion
Latin America Market Size in 2021 USD 1.2  Billion
Europe Market Size in 2021 USD 3.6 Billion
East Asia Market Size in 2021 USD 7.1 Billion
South Asia & Oceania Market Size in 2021 USD 3.8 Billion
Middle East and Africa Market Size in 2021 USD 1.5 Billion
Forecast Period 2021-2031
Historical Data Available for 2016-2020
Market Analysis Value in US$ Mn, Volume in KT
Key Regions Covered
  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East Africa
Key Countries Covered
  • U.S.
  • Canada
  • Mexico
  • Brazil
  • Mexico
  • Argentina
  • Germany
  • Italy
  • France
  • U.K.
  • Nordic
  • Spain
  • Japan
  • China
  • India
  • Malaysia
  • Thailand
  • Australia
  • GCC Countries
  • South Africa
  • Turkey
Key Segments Covered
  • By Material Type
  • By Application
  • Region
Key Companies Profiled
  • Shenzhen BTR New Materials
  • Shanshan Technology
  • Showa Denko Materials Co. Ltd.
  • Mitsubishi Chemical
  • Nacional de Grafite
  • Hunan Zhongke Shinzoom Technology Co., Ltd.
  • Hensen Graphite
  • Aoyu Graphite Group
  • Qingdao Haida Graphite Co., Ltd.
  • Nippon Graphite Industries, Ltd.
  • Superior Graphite Co. 

Consumption Analysis of Graphite (2016-2020) Vs Market Outlook (2021-2031)

Due to the development of numerous applications, ranging from electrodes to refractories, graphite has seen significant increase in demand over time. Besides the variables driving market growth, advancements in electric arc furnace (EAF) steel manufacturing technological aspects have had a significant impact on steering the graphite industry to its current advantageous condition.

In 2020, the impact of COVID-19 was quite significant on this market. Near complete lockdowns imposed dramatically affected international trade across borders. China’s export to the world declined by 17% in January-February 2020. Apart from this, the coronavirus outbreak disrupted freight transport, business travel, and other services that rely on the presence of individuals abroad.

Due to aforementioned reasons, the market for graphite witnessed a huge drop, but is now on its way back up. Over the forecast period, the market is anticipated to witness positive growth owing to Greenfield and Brownfield investments announced by various end-use industries. Overall, the effect of COVID-19 on the market in 2020 led to Y-o-Y growth contraction of 2.1%.

The study forecasts the market to be valued at 32 Bn by the end of the next-half decade and 50 Bn by the end of 2031.

Below points summarize the market over the forecast period:

  • Synthetic graphite to hold 60% market share, and is anticipated to gain 180 BPS by 2031.
  • Electrodes & refractories are highly prominent and set to progress at 9.1% CAGR.
  • Showa Denko Materials Co. Ltd. holds significant market share and has been racing ahead inventing newer technologies and solutions for graphite use in EVs and EAFs.

Graphite market value share and opporutnity analysis by product type from Fact.MR

What is the Role of the Metallurgy Segment in the Market?

Electrodes and refractories, casting, and foundries are all included in the metallurgy area of the market analysed. For steel manufacturing, ferroalloy production, silicon metal manufacture, and smelting, graphite electrodes are used in electric arc furnaces (EAFs) and ladle furnaces (LFs).

The need for graphite is predicted to rise as steel production using electric arc furnaces is on the rise. Natural graphite is used in the production of crucibles and mag-carbon bricks in refractories. Steel converters and electric arc furnaces both use graphite as a liner. Owing to these factors, the metallurgy segment is anticipated to grow 1.3X by the end of 2031.

In steel moulding applications, several types of alumina-graphite are employed in continuous casting ware, such as nozzles and troughs. Rising demand for graphite is likely to be fuelled by increased use of steel.

Graphite is also used to cover foundry facings in order to make the removal of hot metal easier. All of these factors are projected to drive graphite demand in the metallurgical end-user industry.

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Country-wise Analysis

How is the Market Performing in North America and Europe?

Because of the growing need for graphite anodes in the battery industry, companies in Europe and North America are building an integrated graphite supply chain.

Increasing investments in e-mobility and battery grid storage are expected to boost graphite use in these areas. In addition, traditional end users such as steelmaking and refractories are likely to maintain their demand over the next few years.

Graphite market regional analysis by Fact.MR

Why is China a Prominent Market for Graphite?

In the global scenario, China holds a paramount proportion of graphite electrode consumption and production capacity. Nearly 500 kilo tons of graphite electrodes were produced in China, with nearly 60% being used for domestic purposes. In this environment, the steel-making sector is increasingly using graphite for specialist applications.

China's current UHP graphite electrode production capacity is roughly 50,000 metric tonnes per year. In the long run, China's demand for UHP electrodes is predicted to increase significantly, with an increased capacity of over 50,000 metric tonnes of UHP graphite electrodes expected in the forecast period's later stages.

China's proportion of steel produced in electric arc furnaces is expected to increase from 10% in 2021 to roughly 20% by 2021. In this regard, the government has progressively increased the number of steel mills that use electric arc furnaces. However, the country's economic and industrial manufacturing operations have been severely affected as a result of the COVID-19 outbreak.

Category-wise Analysis

What is the Potential of Electrodes and Refractories as Traditional End-use Segments for Graphite?

Steel production and electrodes, refractories & foundries, recarburizers, and friction products are currently major users of graphite, accounting for over 65% of the overall market. In steel manufactured using EAF technology, high purity graphite electrodes are consumed every eight to ten hours.

EAF technology currently accounts for about a quarter of overall steel production, and demand for graphite electrodes is likely to increase over the years. EAF steelmaking is widely seen as a clear winner in the race to create steel in a carbon-neutral and environmentally friendly manner.

With increased demand for steel from various sectors such as automotive, aerospace, and electronics, demand for graphite is expected to rise over the coming years.

One of the fastest-growing applications for graphite is rechargeable li-ion batteries, which has a significant market potential. From 2021 to 2031, the batteries segment is expected to surge at a CAGR of 14.1%. By 2025, global LIB (lithium-ion battery) production is expected to reach 1,500 GWh.

In li-ion batteries, graphite is the most used anode material. Lithium manganese oxide (LMO), lithium cobalt oxide (LCO), and lithium iron phosphate (LFP) batteries all use graphite.

Despite the fact that batteries account for a minor portion of the worldwide graphite industry, technical improvements in this area will provide high growth opportunity for spherical and expanded graphite in the years ahead. Vehicle electrification, electronic devices, and grid storage are all driving li-ion battery market expansion.

How is Synthetic Graphite Demand Shaping Up Compared to Natural Graphite?

In 2020, synthetic graphite accounted for over 60% market share. Electrodes, li-ion battery anodes, synthetic carbon, lubricants, foundries, refractory materials, conductive fillers, coatings, graphite forms, and recarburizers are just a few of the applications.

In steelmaking and silicon industries, these electrodes are employed in electric arc furnaces and melting furnaces. Steel production using EAF technology has increased in recent years, which is likely to drive demand for graphite electrodes. Synthetic graphite is chosen over natural graphite because of its excellent conductivity and purity, which allows it to handle very high electric currents.

Amorphous and flake graphite are the two main types of natural graphite. Flake graphite accounts for more than 50% of the natural graphite's market share and is one of the fastest-growing product groups, thanks to increased demand from rechargeable batteries.

Flexible or expanded graphite, one of the fastest-growing markets for li-ion batteries, is made from natural graphite flakes. It's made by mixing a diluted acid solution with natural flake graphite and heated it to expansion, which splits the flakes apart. This product has large market potential in thermal management and battery storage applications, and it is expected to propel the graphite industry forward going ahead.

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Competitive landscape

  • In 2020, Imerys announced intentions to boost synthetic graphite capacity at Bodio, Switzerland. The company wants to expand its synthetic graphite value and fulfil growing demand from the li-ion battery industry in Europe and North America.
  • In 2020, Novonix Limited and Harper International Corporation formed strategic agreements to develop furnace technology. Novonix's synthetic graphite production method will benefit from the advanced technology.

Key Segments of Graphite Industry Research

  • By Product Type

    • Natural Graphite
      • Flakes
      • Amorphous
      • Veins
    • Synthetic Graphite
  • By Application

    • Electrodes
    • Refractories & Foundries
    • Batteries
    • Recarburisers
    • Lubricants
    • Friction Products
    • Others

- FAQs -

Demand for graphite products is projected to increase at a CAGR of around 8.5% during 2021 – 2031.

Consumption of graphite increased at a CAGR of 7.6% during 2016 – 2020. 

Top 5 graphite manufacturers account for around 30% share in the market.

The top 3 countries driving demand for graphite are China, Japan, and South Korea.

North America accounted for one-fifth of global graphite demand in 2021.

The European market for graphite is projected to expand at a CAGR of 8.1% during 2021 – 2031.

The market in Japan and South Korea is slated to surge at 8.6% and 8.9% CAGRs, respectively, with both countries together accounting for 41% share in the East Asia market.

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