Graphite Market Size, Share & COVID-19 Impact Analysis, By Product (Synthetic and Natural), By Application (Refractories, Foundries, Batteries, Friction Products, Lubricants, Recarburising and Others), and Regional Forecast, 2023-2030

The global graphite market size was valued at USD 6.78 billion in 2022 and is projected to grow from USD 7.28 billion in 2023 to USD 11.58 billion by 2030, exhibiting a CAGR of 6.9% during the forecast period.

Graphite is a lightweight, naturally soft element with metallic and nonmetallic properties, making it ideal for various industrial applications. Its metallic properties include high thermal and electrical conductivity. In contrast, nonmetallic properties include inertia, high resistance to chemicals, corrosion and temperature and excellent cleavage and lubricity. With a melting point of 3,927°C, it is used in applications that require high-temperature environments. Owing to its high melting point, it is used to manufacture materials for high-temperature environments, such as kilns, incinerators, reactors, and blast furnace linings. Its high utilization in refractories and the surging demand for Electric Arc Furnaces (EAF) will drive the market growth over the forecast period.

COVID-19 IMPACT

Plant Closures and Delayed Energy Infrastructure Activities Amid Pandemic Hampered Market Growth

The coronavirus pandemic became the most significant health, social and economic crisis in a decade, affecting almost every global supply chain so that material sourcing, commerce, and delivery systems became very challenging.

The outbreak of the COVID-19 pandemic served as a significant challenge for the industry in 2020 as supply chains were disrupted due to trade restrictions, and consumption declined due to lower demand from end-use industries. Major end-use industries, such as automotive, refractory, steel and metallurgy, faced a similar supply chain crisis due to the pandemic. Several players in the sector reported struggling to keep their operations running. Supply chain disruptions caused by lockdown restrictions forced market players to reduce production or shut down their manufacturing facilities. Additionally, several industries suffered from labor scarcity, resulting in delays in manufacturing and massive losses.

Due to low demand from end-use industries, the market faced a significant decline in year-on-year growth for 2020. However, post-COVID-19, the market recovered quickly on the back of the momentum of electric mobility. Moreover, demand coming from the steel and foundry industries has assisted the market recovery after the ease of lockdowns.

Graphite Market Trends

Trend of Battery-Powered Vehicles to Drive Market Growth

Graphite is a solution in the automobile industry for manufacturing lithium-ion batteries, which are used to fuel new-generation electric vehicles and increase energy density while reducing charging times. It is also used to make thermally conductive polymers, which are used to replace metal in manufacturing automotive components. The electric vehicle industry has witnessed rapid expansion in the past five years, growing annually at 50% from the past five years. Momentum toward clean energy has fueled humongous investments in the electrification of the automotive industry.

A lithium-ion battery is the heart of the electric vehicle, providing the needed energy to drive it. The product is an essential ingredient in the lithium-ion battery, and its demand is expected to rise in the coming years in line with the adoption of electric vehicles and lithium-ion battery applications.

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Graphite Market Growth Factors

Increasing Demand from the Refractory Industry to Propel Growth

The refractory industry is the largest end-user owing to the product’s extreme resistance to heat or higher temperatures, accounting for almost half of global demand. The steel industry is the primary market for refractories made from natural products. The refractory industry uses it to create products for high-temperature conditions, such as linings for kilns, incinerators, reactors, and furnaces. It is used in electric arc furnaces and simple oxygen furnaces, linings in limonite smelting, and crucibles in steel, non-ferrous, and precious metal processing, as well as in refractories, such as magnesia-carbon, alumina-carbon, and alumina-magnesia-carbon. The steel industry is on the trajectory to become a carbon-free industry. In this transition, electric arc furnaces will play an essential role as they produce very low carbon emissions compared to traditional steel production methods. In electric furnaces, graphite electrodes are a key component driving demand over the forecast period.

RESTRAINING FACTORS

Increased Export Duties to Hinder Market Growth

Increasing demand from the refractory industry and skyrocketing demand from the battery industry are creating a supply crisis, pushing different countries worldwide to consider securing their requirements.

As a result, major economies across the globe are securing their requirement of this mineral by increasing export duty on it, adversely affecting the supply available to the dependent countries. For instance, China has raised export duties on the product, stifling the market's growth by limiting the availability outside the country to promote domestic demand. For example, the tightened export controls by China have forced South Korea, which is highly dependent on imports, to secure alternative supplies of minerals for Electric Vehicle (EV) batteries. The steel industry has urged the Indian government to impose a 40% export duty on electrode refractories, one of the most essential raw materials, to boost domestic production and lower costs.

Therefore, increasing export duties by different countries, trade wars among major economies across the globe, and measures to secure domestic supply are anticipated to restrain the graphite industry growth.

Graphite Market Segmentation Analysis

By Product Analysis

Synthetic Segment Dominated Market Owing to its High Temperature and Corrosion Resistivity

Based on product, the market is segmented into natural and synthetic.

The synthetic segment accounted for a larger global graphite market share in 2022. This material is made from high-purity carbon and is known for its resistance to high temperatures and corrosion. These properties make this product an excellent choice for highly specialized industries requiring predictable carbon material results. As a result, the synthetic segment is poised to maintain its dominance throughout the forecast period, owing to vast adoption among consumers.

Natural form is a crystalline form of the element carbon, which consists of stacked graphene layers. It is one of the most stable forms of carbon under standard conditions found in natural deposits. The natural segment is generally found in flake, amorphous, and vein. The refractory and automotive industries are the largest purchasers of this form of the product.  

By Application Analysis

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Refractory Segment to Dominate Owing to High Boiling Point

Based on application, the market is classified into refractories, foundries, batteries, friction products, lubricants, recarburiser, and others.

Due to its high melting point, the refractory industry remains the largest consumer in the global market. The rapid industrial development and increased demand from industries such as automotive, building, aerospace, and metal manufacturing, among others, can be attributed to the expansion of the refractories segment.

The batteries segment holds the second largest share and has emerged as the fastest-growing application, growing at a double-digit CAGR by 2030. The huge growth is anticipated due to the rising demand for lithium-ion batteries (LIB). These are some of the most common rechargeable batteries for portable electronic devices and are characterized by high energy density, limited memory effects, and low self-discharge.

Other uses include lubricants, such as oils, greases, and fluid dispersions in manufacturing and consumer applications. Additionally, it finds application in molded products for the automobile, aerospace, electronics, and industrial machinery industries, as well as in friction materials such as brake pads and clutches for the automotive and aviation sectors, and building materials.

REGIONAL INSIGHTS

Based on region, the market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

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The market size in Asia Pacific stood at USD 3.79 billion in 2022. Sales in Asia Pacific are primarily driven as the region is the hub of many industries where the product is utilized. In addition, it is the production hub of steel, lithium-ion batteries, and automotive. The product is highly consumed in these three industries. It makes up for over half of the regional consumption, making Asia Pacific the most lucrative market in the world. In Asia Pacific, China held the largest share in the year 2022, owing to the huge presence of steel and battery production plants.

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Several graphite and battery manufacturers invest in strategic initiatives to improve their production capability. For instance, in August 2021, Vianode established its industrial pilot in Kristiansand, Norway, with an annual production capacity of 200 tons of battery-grade synthetic graphite. In June 2023, Talga, a battery material developer, received an environmental permit for its commercial battery anode plant in Lulea, Sweden. The efforts mentioned above will enhance the overall value chain of the European market, creating lucrative opportunities for manufacturers.

North America is also planning to expand its battery production capacity, which will cause the market growth to flourish. Latin America and the Middle East & Africa markets are projected to grow moderately during the assessment period. Saudi Vision 2030 and other significant efforts by the Brazilian government to expand its battery production capability will result in additional demand in the market. 

List of Key Companies in Graphite Market

Rapid Capacity Expansion to Become the Key Strategy for Market Giants to Cater the Growing Product Demand

AMG, Asbury Carbons, EagleGraphite, Grafitbergbau Kaisersberg GmbH, BTR NEW Material Group Co., Ltd., Imerys S.A., Nacional de Grafite, SGL Carbon, Mineral Commodities Ltd. are identified as key manufacturers in the study of the global market. Major players have used a variety of strategies to expand their footprints in this sector, including new product releases, alliances, collaborations, and acquisitions, are some of the prominent strategies. Companies such as SGL Carbon, EagleGraphite, and Imerys are involved in some strategic activities mentioned above.

LIST OF KEY COMPANIES PROFILED:

• AMG (Germany)


• Asbury Carbons (U.S.)


• Eagle Graphite (Canada)


• Grafitbergbau Kaisersberg GmbH (Austria)


• Imerys S.A. (France)


• Stoker Concast Pvt. Ltd. (India)


• BTR NEW Material Group Co., Ltd. (China)


• Nacional de Grafite (Brazil)


• SGL Carbon (Germany)


• Mineral Commodities Ltd. (Australia)


• Superior Graphite (U.S.)


• Tirupati Carbons & Chemicals Pvt. Ltd. (India)

KEY INDUSTRY DEVELOPMENTS:

• June 2023: Superior Graphite, one of the leading manufacturers, announced its plan to construct a new anode materials facility with an investment of USD 180 million. The move will enable the company to meet the rising demand for its product from electronic vehicles and energy storage industries in Europe and North America.


• January 2023: POSCO Chemical began constructing its second manufacturing plant for synthetic graphite anode materials, capable of producing 10 kilotons annually.


• March 2022: EagleGraphite announced its partnership with British Columbia to develop silicon-modified battery anodes made with high-performance graphite from the company. The company issued USD 290,000 for the project.


• March 2021: SGL Carbon has been awarded USD 155.7 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 electromobility.


• 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.

REPORT COVERAGE

The research report provides detailed market analysis and focuses on crucial aspects such as leading companies, products, and applications. In addition, it provides quantitative data regarding volume and value, market analysis, research methodology for market data, insights into market trends, and highlights vital industry developments and competitive landscape. In addition to the above-mentioned factors, the report encompasses various factors that have contributed to the market's growth in recent years.

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Report Scope & Segmentation