Needle Coke Market Trends

Growth Drivers

• Increasing Demand for Lithium-Ion Batteries –. The rising use of different cars, including electric vehicles (EV) battery and hybrid vehicles, as well as the electrical and electronics industries, are driving up the need for lithium-ion batteries. Since needle coke is one of the primary materials used in the manufacture of lithium-ion batteries, a rise in the demand for these batteries will accelerate the growth of the needle coke market.
•  Growing Steel Recycling Demand- There is a rising awareness among people to reduce carbon emissions. Needle coke is an essential component for recycling steel, an increase in the demand for recycling will drive the market growth more than paper, aluminum, plastic, and glass combined, about 69% of all steel is recycled in North America each year.
• Increased Technological Advancements – Increasing efforts are being made by companies to attain scientific and technological advances in the production of graphite electrodes. In order to limit the dependence on imported raw materials for needle coke, manufacturers in Russia have increased their research and development expenditure. Also, the Russian government spent 37.6 billion in 2022 on R&D operations. Russian stakeholders can thus be encouraged to raise exports of needle coke.

Challenges

• Increasing Prices of Raw Material – Due to the volatility in crude oil prices, there is a very strong impact of price fluctuation on the material necessary for the production of needle coke. The market growth is therefore expected to be hindered by fluctuations in the price of materials and products.
• Strict Environmental Regulations
• Scarcity of Needle coke Derived from Petroleum