SYNTHETIC GRAPHITE MARKET ANALYSIS

The global synthetic graphite market size was valued at USD 1888.5 million in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 3.77% from 2023 to 2030. The growth of synthetic graphite market can be attributed to the increasing demand for graphite from automotive industry. The market is also expected to get benefits from the growing popularity of electric vehicles. Moreover, the rise in the installation of solar power systems is further projected to propel market growth. A large portion of the global synthetic graphite is derived from the production of graphite electrodes. This product is primarily produced using calcined petroleum coke and coal tar pitch as primary raw materials.

Global Synthetic Graphite Market: Regional Insights

Regionally, Asia-Pacific is expected to dominate the global synthetic graphite market, with China and India accounting for a majority of its consumption and production capacity. In China, the market is driven by the growing demand for electric cars and a shift toward environmentally-friendly manufacturing methods. The country is also investing heavily in the refractory and electrode sectors.

Europe is the second-largest graphite market, with Germany and France accounting for a majority of its consumption and output. In addition to the electric car industry, the demand for lithium-ion batteries has also been driving the graphite market growth in Europe.

Figure 1. Global Synthetic Graphite Market (%), By Region

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Global Synthetic Graphite Market Drivers:

Growing demand for electric vehicles to propel market growth

The production of synthetic graphite is driven by the rising demand for electric-vehicle batteries. These batteries rely on an anode made of graphite, which passes a lithium ion from the cathode to the battery's surface. This allows the battery to store a higher quantity of lithium ions than a traditional lead-acid or nickel-metal hydride battery. According to EV volumes data, in 2021, global EV sales reached 6, 75 million units, up 108% from 2020. Passenger cars, light trucks, and light commercial vehicles are all included in this book. EVs (BEV and PHEV) accounted for 8.3% of worldwide light vehicle sales in 2018, compared to 4.2% in 2020.

Increasing demand for high purity synthetic graphite to foster market growth

High purity synthetic graphite is widely used in various industrial application. The usage of high purity graphite gives good results in the field of industrial manufacturing. In lubrication, conductivity, metallurgy, and other industrial production domains, high purity graphite is widely used. This includes Lithium battery industry, isotropic nuclear graphite industry, artificial diamond industry, military graphite bomb industry and flexible graphite industry.

Global Synthetic Graphite Market Opportunities:

Growing investment in the field of research and development of graphite is expected to offer significant growth opportunities. For instance, the European Union invested USD 1.3 billion in the Graphene Flagship, a consortium of academic and commercial researchers. The UK government has provided GBP 235 million (USD 353 million) to fund a graphene research center.    

Graphene is being increasingly used as a replacement material for silicon, which has started to show its age in the face of extremely rapid technological progress. This is expected to hold potential market opportunities for key players. In the coming next 10-25 years, graphene may replace silicon as the primary material in semiconductors. According to the Coherent Market Insights analysis, market size of about USD 70 billion is projected for graphene semiconductors by 2030

Global Synthetic Graphite Market Trends:

Growing partnership and agreement among key players

Key players are adopting partnership and agreement to meet growing demand for synthetic graphite. This is expected to be a major trend for the market. For instance, in June 2022, Anovion, LLC (Anovion) and Forge Nano Inc. (Forge Nano), two premier U.S. domestic battery materials manufacturers, announce an agreement to collaborate on the supply of enhanced graphite anode technology for lithium-ion batteries.

Growing merger and acquisition in the market

For instance, in January 2022, Northern Graphite acquire the already operational Lac des Iles graphite mine in Quebec, Canada, and the Okanjande graphite deposit/Okorusu processing plant in Namibia, both from Imerys, and make the step from being a junior miner to a producer.

Global Synthetic Graphite Market Restraints:

Increasing preference for natural graphite

According to the US Geological Survey in January 2022, the key uses of natural graphite, were batteries, brake linings, lubricants, powdered metals, refractory applications, and steelmaking. Imports of natural graphite to the United States in 2021 were predicted to be 53,000 tons, with flake and high-purity, percent amorphous, and% lump and chip graphite.

Stringent environmental regulations

Synthetic graphite is petroleum-based and manufactured mostly from high-grade petroleum coke, which leads to larger carbon footprint. This is expected to hinder the market growth.

Figure 2. Global Synthetic Graphite Market (%), By Type

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Global Synthetic Graphite Market Segmentation:

The global synthetic graphite market report is segmented into type, application, and geography

Based on type, the market is segmented into Graphite Anode, Graphite Block (Fine Carbon), and Other Types (Graphite Electrode, etc.). Out of which, Graphite Anode is expected to dominate the global market over the forecast period and this is attributed to the increasing consumption of the lithium-ion batteries in electronics and automotive sector.

Graphite Block (Fine Carbon) segment is also expected to witness significant growth in the near future and this is owing to the growing demand from variety of applications, ranging from polysilicon manufacturing for the photovoltaic sector to high-temperature reactors in the nuclear sector.

Based on application, the market is segmented into Metallurgy, Parts and Components, Batteries, Nuclear, and Other Applications. Out of which, Metallurgy is expected to dominate the global market over the forecast period and this is attributed to the growing use of synthetic graphite as monolithic, refractories, electrodes, bricks, crucibles, etc. In the manufacturing of steel or ferro-alloys and aluminum, synthetic graphite is widely used as an anode in the electric arc furnace (EAF) method.

Parts and Components segment is also expected to witness significant growth in the near future.  Synthetic graphite is widely used in bushings and bearing, plates & plugs, seals and valves, brushes, and other parts and components

Global Synthetic Graphite Market: Key Developments

In June 21, Imerys Graphite & Carbon Company opened a new plant in India. This strategy will help the company cater to emerging economies like India, China, etc. It is developed to expand the business of refractory and building and infrastructure and other product portfolios.

In January 2021, Imerys Graphite & Carbon Company developed two new primary synthetic graphite: KS6L and SFG6L. These product developments help to increase the company’s product portfolio.

In September 2020, Imerys Graphite & Carbon Company invested EUR 100 million to increase its capacity to manufacture conductive carbon black and synthetic graphite products.

In December 2020, Mersen developed a new range of products named Graphilor isostatic graphite rupture disc. The company aims to provide more corrosion resistance, quality, and fast delivery by offering this product range.

In November 2022, American Battery Factory Inc. (ABF), a company involved in developing the first network of gigafactories in the United States based on Lithium-Iron Phosphate (LFP) cell technology, today announced a strategic alliance agreement with Anovion, LLC (Anovion) to supply graphite anode materials for ABF's US-manufactured LFP battery cells.

Global Synthetic Graphite Market: Key Companies Insights

The global synthetic graphite market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global synthetic graphite market are Asbury Carbons, Beiterui New Material Group Co. Ltd, Shanshan Technology, Shenzhen Sinuo Industrial Development Co. Ltd, Mitsubishi Chemical Corporation, Imerys Graphite & Carbon, Mersen Corporate Services SAS, Graphit Kropfmhl GmbH, Shamokin Carbons, Showa Denko K.K., Jiangxi Zichen Technology Co. Ltd, GrafTech International, Lianyungang Jinli Carbon Co. Ltd, Nippon Carbon Co. Ltd, and Graphite India Limited

*Definition: Graphite is a form of carbon that has a high electrical conductivity and can be used in a variety of applications. It is an important raw material for the production of batteries and other electrochemical devices. Moreover, it is also used in the manufacturing of friction products and lubricants.