Graphite Market Definition
The graphite market consists of sales of natural graphite and its compounds by entities (organizations, sole traders and partnerships) that mine graphite and its compounds which are used in refractory materials, the chemicals and nuclear industries, electrical applications, and mechanical applications.
Natural graphite is a non-metallic mineral consisting of graphitic carbon. Most commercial natural graphite is mined and often contains other minerals requiring mineral processing such as froth flotation to concentrate the graphite. Natural graphite is a good conductor of heat and electricity. It is stable over a wide range of temperatures and highly refractory with a high melting point at 3650°C. Natural graphite is mainly used in brake linings, foundry operations, lubricants, refractory applications and steelmaking.
Graphite Market Size
The global graphite market reached a value of nearly $1,282.7 million in 2018, having declined at a compound annual growth rate (CAGR) of -0.9% since 2014.
Decline in the historic period was mainly due to the drastic fall in graphite prices during 2015 and 2016 and slight decrease in graphite production volumes in 2016, partially due to low demand from the steel sector. However, post 2016 the global market has gradually recovered supported by rising prices and increasing demand from various end use industries. This trend is expected to continue in the forecast period.
Going forward, growing demand for electric vehicles, opening of new graphite mines which is expected to ensure steady and strong supply, rising commercial applications of graphene (made from graphite), and growing demand for energy storage will drive growth. Factors that could hinder the growth of the graphite market in the future include reductions in free trade, and innovations in lubrication technology.
Graphite Market Drivers
The Key driver of the graphite market include:
High Demand From Refractories Manufacturing
The growth in the refractories manufacturing industries led to an increased demand for graphite. Refractories are materials that are resistant to high temperatures. Graphite is used in various ways in refractories: it is used in the production of refractory bricks such as magnesia-carbon (MgO-C) refractory bricks, crucibles, ladles and molds for containing molten metals. The refractories market reached $23.3 billion in 2018 proving to be a driver of the graphite market.
Graphite Market Restraints
The key restraints on the graphite market include:
Environmental Regulations
Environmental regulations imposed by governments globally to decrease carbon emissions and meet environmental targets proved to be a restraint on the graphite market. For example, a number of polluting producers of graphite in Shandong province, China, the center for flake graphite and spherical graphite processing, were closed during the 2017-2018 environmental inspections to meet the government’s environmental targets. The result of such closures of graphite mines led to the decline in graphite production in the country and the rise in prices of China-mined graphite, driving potential customers away from purchasing flake graphite from China. Environmental regulations that led to the closure of graphite mines restrained the graphite market.
Graphite Market Trends
Major trends shaping the graphite market include the following:
Increasing Demand For Graphene Batteries
Graphite mining companies are considering increasing the production of graphite to cater to the increase in demand of graphene batteries. Graphite is an essential mineral used in lithium-ion battery. Both synthetic graphite and natural graphite, in the form of the intermediate product spherical graphite, are used in the anodes of the lithium-ion batteries. There is as much as 40 times the amount of graphite in a lithium-ion battery as lithium. Many governments and individuals turn to batteries for energy storage for intermittent renewables and electric vehicles. As demand for electric cars continues to increase, it is expected that there will be 530 million electric vehicles around the world by 2040. To meet this growing demand, the firm believes new natural and synthetic graphite capacity is required. The European Commission is eyeing opportunities within the EU’s minerals and mining sector, and has put forward, in its Strategic Action Plan (SAP) on batteries, a comprehensive set of targeted measures to make Europe a global leader in sustainable battery production and use. They plan to make use of their own raw materials and identify and extract lithium, nickel, and graphite, which are critical to manufacture batteries in Europe. For instance, in 2019, LG Chem, a South Korea-based company plans to open Europe’s largest lithium ion battery in Poland that uses graphite as a raw material.
Of late, graphene-based batteries are also being used for new generation mobile phones to reduce charging time and enhance battery life. Graphene mobile batteries are expected to reach optimum charge within 30 minutes. Companies such as Graphenano and Grabat have already introduced graphene mobile batteries and the leading smart phone manufacturer, Samsung is expected to introduce mobile devices which are powered by graphene batteries by 2021. Samsung developed “Graphene Ball”, a new technology that increased the battery capacity by 45% and the charging speed by five times.
Underground-Drones For 3D Mapping
The use of underground-drones to build three-dimensional (3D) maps for mine plans is gaining popularity in the graphite industry. 3D maps of graphite mines enable engineers and designers to plan the layout and action plan before setting foot on the mine, resulting in short gestation periods. 3D maps of graphite mines are obtained by deploying underground-mapping drones with onboard sensors that scan the surroundings of the mines and build a schematic 3D map. The drones are mainly equipped with accelerometers, gravitometers, cameras, and MiDAR (multispectral imaging, detection, and active reflectance) technology for easy navigation in graphite mines. Such technology has been actively used in graphite mines in Africa to increase the efficiencies of mining operations. In addition to 3D mapping, sensors on underground-mapping drones can also be used to monitor fluid levels, temperatures and vibrations at mines, resulting in timely maintenance based on the evidence rather than waiting for a scheduled routine.
Opportunities And Recommendations In The Graphite Market
Opportunities: The graphite market size will gain the most in China at $57.77 billion. Market-trend-based strategies for the graphite market include deploying underground-drones for 3D mapping, investing in graphite production sites in Africa, investing in autonomous technologies and investing in big data analytics. Player-adopted strategies in the graphite industry include expanding graphite business lines and expanding graphite product portfolios through fundraising.
Recommendations: To take advantage of the opportunities, The Business Research Company recommends the graphite mining companies to consider investing in research and development to find new ways to purify natural graphite, focusing on development of graphene, and offering competitive pricing, among other strategies
Graphite Market Segmentation
The graphite market is segmented by product type, application, flake size and by geography.
By Product Type-
The graphite market can be segmented by product type
- a) Non-Flake Graphite
- b) Flake Graphite
The flake graphite market was the largest segment of the graphite market in 2018 at 86.1% or $1,103.9 million. The non-flake graphite segment is expected to be the fastest-growing segment going forward.
By Application Type-
The graphite market can be segmented by application
- a) Refractories
- b) Batteries
- c) Lubricants
- d) Foundry
- e) Pencils
- f) Others
Refractories was the largest segment of the graphite market by application in 2018 at 32.7% or $419.9 million. The graphite market for batteries applications is expected to be the fastest-growing segment going forward.
By Flake Size-
The Graphite market can be segmented by flake size
- a) Jumbo
- b) Large
- c) Medium
- d) Small
- e) Fine
The large flake size graphite market was the largest segment of the graphite market by flake size in 2018 at 26.6% or $341.7 million. The jumbo flake size graphite segment is expected to be the fastest-growing segment going forward.
By Geography- The graphite market is segmented into
- o North America
- o Western Europe
- UK
- Germany
- France
- Spain
- Italy
- Netherlands
- Switzerland
- Belgium
- Sweden
- Denmark
- Ireland
- Austria
- Norway
- Portugal
- Finland
- o Asia Pacific
- China
- Japan
- India
- Australia
- South Korea
- Indonesia
- Hong Kong
- Thailand
- Philippines
- Singapore
- Malaysia
- New Zealand
- Vietnam
- o Eastern Europe
- Russia
- Poland
- Romania
- Czech Republic
- o South America
- Brazil
- Argentina
- Colombia
- Chile
- Venezuela
- Peru
- o Middle East
- Turkey
- Saudi Arabia
- Israel
- UAE
- o Africa
- Nigeria
- South Africa
- Egypt
Asia-Pacific was the largest region in the global graphite market, accounting for 70.2% of the global market in 2018. It was followed by Western Europe, North America and then the other regions. Going forward, the fastest-growing regions in the graphite market will be Eastern Europe and Africa.
Graphite Competitive Landscape
Major Competitors are:
- • Triton Minerals Ltd.
- • Syrah Resources Limited
- • Tirupati Carbons & Chemicals Private Limited
- • Focus Graphite Inc.
- • Qingdao Xinghe Graphite Co., Ltd.
Other Competitors Include:
- • Nouveau Monde Graphite
- • Agrawal Graphite & Carbon Products (P) Ltd
- • ZEN Graphene Solutions
- • Sayona Mining Ltd.
- • Hexagon Resources
- • Graphite India Limited
- • Chotanagpur Graphite Pvt. Ltd.
- • Kibaran Resource
- • China Carbon Graphite Group, Inc.
- • Tamil Nadu Minerals Limited
- • Qingdao Freyr Graphite Co. Ltd.
- • Henan Yukuang International Mining Investment Co., Ltd
- • China Carbon Graphite Group, Inc.
- • Qingdao Freyr Graphite Co. Ltd.
- • SGL Group
- • ENVEA
- • The UK Carbon & Graphite Co Ltd.
- • Georg H. Luh GmbH
- • AMG Advanced Metallurgical Group
- • UK Carbon & Graphite Co Ltd.
- • Borrowdale Graphite Mine
- • Uralgraphite
- • Dalgrafit
- • Zavalievsky Graphite
- • Grafitos Mexicanos
- • SA De CV
- • CobalTech Mining Inc.
- • Mason Graphite
- • Elcora
- • Extrativa Metalquimica
- • Nacional de Grafite Ltd
- • Ma’aden
- • Syrah Resources Saudi Arabia LLC
- • Durer Refrakter Malzemeleri Sanayi Ve Ticaret A.S.
- • Marmara Metal Mamull.Tic.A.S.