Graphite Market Market Trends

Growth Drivers

• Growing demand for smartphones - Graphite is increasingly used in designing and performing various electrical products, including smartphones. Its outstanding features enable the seamless integration of new technology into everyday life, such as powering smartphones and laptops via batteries, regulating heat, and being used in touchscreens. For example, the global smartphone user base has grown by more than 4% each year for the past five years.
• Graphite’s expansion in the aerospace industry - 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. Furthermore, the aerospace industry is predicted to develop, driving up demand for graphite over the speculated period.
• Increasing demand for advanced electric battery technology - The transition towards green energy is likely to boost demand for better electric battery technology. Graphite is a vital component in graphite-anode battery designs because it can provide enormous storage and quick charging periods while maintaining high power.
  Further, technical developments in steel production employing calcined petcock or electric arc furnaces (EAF), as well as the emergence of battery-powered automobiles, are anticipated to have a substantial impact on the worldwide graphite market size throughout the coming years.

Challenges

• Price Fluctuations - Only a few nations, including China, Brazil, India, and Mozambique, have a concentrated amount of graphite. Any disruptions in these regions, either caused by regulatory changes, trade disputes, or natural disasters, can have a large impact on the worldwide graphite supply chain, resulting in price volatility.
  Oversupply and lower-than-expected demand for electric vehicles have caused essential battery material prices to fall, prompting corporations to reduce output or postpone project investments. This unpredictable volatility in price can hinder market growth.
• Rising graphite prices coupled with high extraction costs
• Strict regulations for mining processes by the government