Graphite Market Trends

Growth Drivers:

• Growing demand for smartphones and tablets: 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. The rising demand for advanced smartphones and tablets with advanced processors, high-resolution screens, and 5G connectivity is set to propel the graphite market growth. According to a report, in 2022, around 1.39 billion smartphones were sold globally. This has resulted in growing demand for high-quality graphite. As smartphone designs are becoming thinner and lighter, the demand for high-thermal materials like graphite is rising, fueling overall market growth.
• 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.

Challenges:

• Limited production in certain regions and challenges associated with mining: Natural graphite production is concentrated only in certain areas across the globe such as China, Brazil, India, and Mozambique. This geographical dependency can expose the market to geopolitical risks and trade restrictions. Moreover, developing new graphite mines is capital-intensive and time-consuming due to regulatory requirements, environmental concerns, and fluctuating market demand.
• Volatility in prices and rising focus on recycling:  Over the years, the demand for graphite has been increasing from several emerging sectors. This has resulted in rising concerns about supply chain fluctuations, causing volatility in prices. Traders in commodity markets add uncertainty, driving product prices.  In addition, the development of recycling technologies for graphite used in batteries can be a potential threat to graphite miners.