Graphite Market size is expected to witness an increase of USD 17.16 billion during the forecast period i.e., between 2025-2037, expanding at a 5.5% CAGR. The industry valuation of graphite in 2025 is estimated at over USD 17.79 billion.
The graphite market growth is due to the increasing production of graphite globally to cater to rising demand from the automotive sector. Graphite mining is rising due to its usage in EV batteries. China was the largest graphite producer in 2023, with 1.23 million metric tonnes of production, according to the United States Geological Survey (USGS). China accounts for over 60% of global graphite production and many nations heavily rely on China’s supply chain for raw and refined graphite. This can be due to the rising usage of graphite in the production of lithium-ion batteries and other critical components of electric vehicles.
Top Exporters of Graphite in 2022
|
Country |
Export Revenue |
|
China |
USD 411 million |
|
Mozambique |
USD 89.9 million |
|
Madagascar |
USD 78.5 million |
|
Germany |
USD 35.4 million |
|
Brazil |
USD 30.4 million |
The demand for graphite is also increasing in the aerospace and defense sector. Graphite is commonly utilized in aerospace applications and lightweight composite parts for airplanes. In comparison to standard aircraft materials like metals and plastics, graphite has a high overall strength capacity. Several companies are also investing in developing graphite products and processing impacting the aerospace sector. In July 2023, Graphite One announced a 15% increase in their Graphite Creek Measured and Indicated Resource. This expansion underscores the rising need for high-quality graphite for aerospace and defense sector.
Growth Drivers:
Challenges:
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Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
5.5% |
|
Base Year Market Size (2024) |
USD 17.04 billion |
|
Forecast Year Market Size (2037) |
USD 34.18 billion |
|
Regional Scope |
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Product Type (Natural Graphite, Synthetic Graphite)
The synthetic graphite market is poised to garner a 60% share by 2037, driven by its utilization in a variety of applications, including friction, foundry, electrical carbons, fuel cell bipolar plates, coatings, electrolytic processes, corrosion products, conductive fillers, rubber and plastic compounds, and drilling operations. The purity of natural graphite ranges from around 70.1% to 99.0%, while synthetic graphite purity is usually above 99.0%. According to a report by OEC, synthetic graphite was the world’s 617th most-traded product in 2022, with a total trade of USD 3.89 billion, and top exporters included, China (USD 1.84 billion), Germany (USD 256 million), Japan (USD 247 million), and U.S. (USD 205 million).
Application (Refractory, Metallurgy, Metal Fabrication, Lubricants & Crucibles, Foundry Facing, Batteries & Energy Devices)
The refractory segment in the graphite market is estimated to gain a robust revenue share of 30% by 2037, impelled by the rising application of graphite as a refractory material, which is projected to grow soon due to its properties, such as heat resistance, stability, and high thermal properties. Furthermore, the growth of the segment can also be attributed to rapid industrialization and the increased use of graphite in the iron and steel industries. In a study, it was observed that in a steelmaking process, the tip of the electrode is heated up to 3,000 degrees Celsius. Electrodes are made of graphite since only graphite is capable of handling such intensive heat. In addition to that, nearly 70%-80% of the graphite electrodes are used in EAF steelmaking.
Moreover, graphite is also used as mold wash in several casting processes and facing sand by the foundry industry, which is counted as the second-highest use of this market. Ferrous castings account for the highest global share of many casting types, either by non-ferrous castings such as copper, aluminum, lead, zinc, magnesium, or titanium-based castings. The most popular uses for foundry-cast metals include automotive, pipelines, and machinery.
Our in-depth analysis of the global graphite market includes the following segments:
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Product Type |
|
|
End use |
|
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Application |
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APAC Market Forecast
The graphite market in Asia Pacific industry is likely to hold the largest revenue share of 47% by 2037 owing to increasing demand for consumer electronics and electric vehicles, rapid industrialization in countries such as China, India, South Korea, and Japan, and increasing demand for graphite from steel manufacturers. China dominates the market due to its abundant natural graphite resources, low production costs, and rising demand across several industries.
China is the world's largest consumer and producer of graphite electrodes. Based on USGS data, China produced 820,000 tons of graphite in 2021; this number increased to approximately 1.25 million tons in 2023. This accounts for 79% of the world's graphite production. China is also a significant producer of synthetic graphite, often used in high-tech applications, including lithium-ion batteries. In addition, the favorable government regulations to manage the environmental impacts of graphite mining and optimize resource use are expected to support market growth going ahead.
The graphite market in India is expected to register rapid growth during the forecast period. This growth can be attributed to rapid urbanization, increasing sales of electric vehicles, and growing domestic demand for steel, batteries, and electronics. India holds significant graphite reserves, estimated at around 11 million tonnes in Jharkhand, Odisha, Tamil Nadu, and Arunachal Pradesh. In addition, it exports raw or semi-processed graphite and according to the OEC, it exported USD 170K in natural graphite in 2022.
North America Market Statistics
The North America graphite market is expected to register significant CAGR between 2025 and 2037, propelled by increasing production of electric vehicles in the U.S. and Canada, high demand for graphite in energy and consumer electronics applications, and government norms to promote clean energy and reduce carbon emissions. In addition, the presence of industry giants and tremendous investments in research and development activities to increase graphite production is expected to fuel market growth during the forecast period.
The U.S. currently has minimal natural graphite production, relying heavily on imports to meet its industrial needs. However, to reduce the dependence on imports, the country is investing in synthetic graphite production. For instance, Novonix, an Australian company is constructing a large-scale synthetic graphite factory in Chattanooga with a conditional loan of USD 755 million from the U.S. Department of Energy. The company aims to supply graphite for 3,25,000 EVs by 2028.
In 2022, Canada exported USD 22 million worth of natural graphite and USD 14 million of synthetic graphite, primarily to the U.S. The graphite market is rapidly expanding due to rising EV production, high focus on renewable energy storage, and strong government support. In addition, rising investments in enhancing graphite production capabilities and increasing applications of graphite across several sectors are expected to boost market growth in the country.
The global graphite market is highly competitive and dynamic, shared by key players, regional influences, technological advancements, and demand from end use industries such as batteries, refractories, and lubricants. The key players in the market are adopting several strategies such as mergers and acquisitions, partnerships, product launches, and license agreements to sustain their market position and enhance their product base. Here are some key players operating in the global graphite market:
Author Credits: Rajrani Baghel
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