Synthetic Graphite Market - Forecasts from 2024 to 2029

The global synthetic graphite market is expected to grow at a CAGR of 6.86% during the forecast period (2024-2029).

Amorphous carbon materials can be transformed into synthetic graphite via treatment at high temperatures. Calcined petroleum coke and coal tar pitch are two of the most utilized materials for synthetic graphite. GAB Neumann utilizes graphite from Western sources (suppliers in the United States, Europe, and Japan). The company's approach employs a homogeneous, fine-grain graphite with a compact grain structure and an ideal grain and pore size distribution, freeing structural abnormalities like fractures, big pores, and impurities.

Synthetic graphite is used in foundries, electrical carbons, fuel cell bipolar plates, coatings, electrolytic processes, corrosion products, conductive fillers, rubber and plastic composites, and drilling. One key use is in lithium-ion batteries.

Further, the mentioned drivers and opportunities are upsurging the market growth:

• The spike in electric vehicle adoption drives demand for lithium-ion batteries, which use synthetic graphite as a significant component in battery anodes. For instance, NOVONIX Anode Materials, located in Chattanooga, Tennessee, USA, designs and manufactures synthetic graphite anodes for lithium-ion batteries employed in electric cars, hand-held electronics, medical instruments, portable storage devices, etc. As worldwide EV manufacturing increases, this trend generates significant growth in the synthetic graphite industry. Synthetic graphite's exceptional performance qualities, such as high purity and conductivity, make it crucial for satisfying the severe demands of EV battery technology.
• Synthetic graphite possesses desirable thermal-electrical conduction and is applied in many sectors like aerospace, steel-making, automotive, and many more. It is used as various tools in aerospace, for example, brakes on aircraft and aircraft heat shields. In addition to this, multiple companies are expanding the production of synthetic graphite owing to the increased utilization. One such example is POSCO Chemical which built the first synthetic graphite anode material factory with an annual production capability of 8,000 tons in December 2023, and they have successfully localized this in Korea.
• Moreover, CS's objective is to generate graphite in a novel method that will decarbonize the battery sector and localize supply chains. The company claims it can manufacture one metric tonne of synthetic graphite from seven tonnes of dry wood chips and that the cost is comparable to manufacturing synthetic graphite from fossil fuels. This is because the temperatures required to make graphite from wood chips are lower, and the process takes hours rather than weeks. These kinds of innovations in the development of synthetic graphite are one of the major market growth opportunities. Furthermore, synthetic graphite heat management characteristics make it useful in modern electronics, fueling demand as these industries develop and grow. Leveraging these prospects can drive development and innovation in the synthetic graphite industry.

GLOBAL SYNTHETIC GRAPHITE MARKET DRIVERS:

• Isostatic synthetic graphite is gaining popularity.

Isostatic graphite is a kind of ultrafine-grain graphite used in cases where the mechanical properties of normal fine-grain graphite are inadequate. The term isostatic graphite refers to graphite that had been made using the isostatic molding process. This means that the raw materials are compressed into rectangular or circular bars with the aid of the cold isostatic press (CIP).

Isostatic graphite is a unique sort of graphite material that varies from other types of artificial graphite and has superior physical characteristics due to isotropy throughout the structure. This graphite is gaining popularity due to its homogeneous structure, high density, and superior mechanical strength obtained by isostatic pressing. Iso-graphite is being rapidly employed in numerous fields, for example, aerospace, automotive, and the semiconductor industries. This is because the material has isotropic properties that enable it to perform harmoniously under extreme conditions. It is, therefore, perfect to use the material where accuracy and quality are needed together with high and consistent durability in high temperatures or where corrosive features are present. The isostatic graphites are manufactured by Mersen at its manufacturing facilities in Saint Marys, Pennsylvania, and Chongqing, China to have complete traceability and best quality. They include Graphilor, a special substance coated with phenolic resin (XBS), PTFE (XTH), or carbon (XC).

• The growing application of synthetic graphite in metallurgy.

The expanding use of synthetic graphite in metallurgy is remarkable, especially in sectors that need high-temperature processing and tight control over carbon content. Considering the thermal stability, conductivity, and purity of synthetic graphite, synthetic graphite finds application in metallurgical industries such as steel, foundries, and metal casting. Some of its uses are in crucibles, molds, and electrodes because this material has characteristics like high thermal shock tolerance, low contamination, and high-temperature tolerance. SAIL, RINL, TSL Group, AM/NS, JSWL, and JSPL produced 76.681 MT of crude steel, accounting for 61% of total output, an increase of 4.9% over the previous year. The remaining 48.039 MT came from other producers. The Private Sector produced 102.618 MT of Crude Steel, accounting for 82% of total output and a 7.7% increase from the previous year.

Synthesized graphite is expected to feature even more in metallurgical processes, which require advanced materials to enhance their performance and deliver better-quality products. Hence, it is forecasted to propel the metallurgy industry to innovate and grow.

• The rise in adoption of electric vehicles might drive market expansion

The increase in the usage of lithium-ion batteries in vehicles due to increased consumer preference for electric vehicles has led to the increased use of synthetic graphite to manufacture anode materials. Since 2018, the worldwide graphite battery end-use market has expanded by 250%. In 2023, 4 lithium-ion battery production factories were in the US, with 21 more under development.

In addition to this, NETL and its collaborators are making advances in the production of graphite, a substance with special qualities that make it a vital component for mass-producing battery electric cars (BEVs), energy storage systems, and other green technologies from undesired carbon waste products.

NOVONIX inked an agreement on January 31, 2022, to be KORE's sole supplier of graphite anode material as part of a strategic relationship to improve the North American lithium-ion battery supply chain. On November 30, 2022, KORE announced that it had secured an initial US$75 million in strategic financing from Siemens Financial Services and other strategic investors to support the construction of its KOREPlex facility in Phoenix, Arizona, which will begin commercial production in the fourth quarter of 2024.

• The Asia Pacific region to dominate the synthetic graphite market during the forecast period.

In 2022, global graphite consumption reached 3.8 million tonnes, compared to 3.6 million tonnes in 2021. Synthetic graphite accounted for about 56% of the graphite consumption, concentrated largely in Asia. North America consumed only 1% of the global natural graphite and 8.9% of synthetic graphite, while Asia Pacific consumed as much as nearly 78% of the synthetic graphite for that fiscal year.

Asia Pacific is also increasing its demand for synthetic graphite because of the elevated industrialization within the region, especially in China and India, for use in steel, automotive, and electronics industries. The Cabinet has permitted the PLI Scheme for specialty steel production in India with an investment of INR 6,322 crore. The plan is proposed to start in the fiscal year 2023-24, though the PLI will be issued in the fiscal year 2024-25. The MoU signing was done for 30 businesses out of 67 applications chosen under the Production Linked Incentive Scheme for Specialty Steel. It has a fixed funding commitment of INR 29,530 crore, which has been allocated to downstream capacity augmentation of 25 million tonnes and employment generation of 700,000. By the planning horizon of 2030-31, India intends to have a total crude steel capacity and total crude steel demand/production of 300 MTPA and 255 MTPA, respectively. The rise in demand for lithium-ion batteries used in electric vehicles (EVs) and renewable energy technology in the region also propels the market. The increase in the quality of synthetic graphite products, coupled with manufacturing improvements and advanced technologies, fuels the market growth.

Government measures supporting clean energy and sustainability encourage using EVs and renewable energy, increasing demand for synthetic graphite. These factors together position the Asia-Pacific region as a key participant in the worldwide synthetic graphite market, encouraging growth and innovation.

Global Synthetic Graphite Market Key Developments:

• In February 2024, Panasonic Energy Co., Ltd., a Panasonic Group Company, announced that it has signed a binding off-take agreement with NOVONIX Limited, the leading battery materials and technology company. This is for the supply of synthetic graphite, the primary component of the anodes of lithium-ion batteries used in electric vehicles.
• In December 2023, Graphite One Inc. announced the delivery of synthetic graphite anode material samples for analysis by U.S.-based worldwide end customers. Three of the active anode material samples are intended to fulfill certain lithium-ion battery requirements: energy density higher than 360 mAh/g, charge current rate higher than 4 C, and circulation lifespan longer than 6000 times.
• In March 2022, ACP Technologies LLC, a developer of high-performance synthetic graphite for batteries in the United States, announced that it had signed a deal with Navitas Systems, a pioneer in integrated energy storage systems and a Department of Defence (DoD) contractor. Under this agreement, the graphite anode materials shall be supplied by ACPT based in the United States.

The global synthetic graphite market is segmented and analyzed as follows:

By Type

• Fine-Grain Graphite
• Isostatic Graphite
• Extruded Graphite
• Others

By Application

• Metallurgy
• Parts and Components
• Batteries
• Nuclear
• Other Applications

By Geography

• North America
• United States
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Rest of South America
• Europe
• United Kingdom
• Germany
• France
• Italy
• Spain
• Rest of Europe
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Rest of Middle East and Africa
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Taiwan
• Thailand
• Indonesia
• Rest of Asia-Pacific