Graphite Market Size

Graphite Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The graphite market is growing fast. In 2024, it is expected to reach $16.7 billion and by 2035 it is expected to reach $29.4 billion. This translates into a compound annual growth rate (CAGR) of 5.15% from 2025 to 2035, which shows that there is a strong demand for graphite in various fields. The rapid development of the electric vehicle industry, the development of lithium-ion batteries, and the increasing need for lightweight materials in the aerospace and automobile industries are the main driving forces of this market. The graphite industry has a unique property, and with the energy-saving and emission-reducing development trend of industrial products, it has become an indispensable material for energy storage and high-performance materials. The graphite market has a number of key players, such as Syrah Resources, Northern Graphite and GrafTech International. These companies are increasingly entering into joint ventures to ensure sustainable supply and invest in new graphite processing technology. The demand for high-purity and expandable graphite is increasing, which will also lead to market growth. These strategic moves will have a significant impact on the future competition of the graphite industry.

Regional Market Size

Regional Deep Dive

The Graphite Market is growing dynamically in all regions of the world, driven by the growing demand for graphite from the battery, lubricant and steel industries. In North America, the market is characterized by a strong focus on sustainable mining practices and technological developments in graphite processing. In Europe, the production of electric vehicles is booming, which is causing a significant increase in the demand for high-purity graphite. The Asia-Pacific region, especially China, is the world's largest graphite producer, but domestic consumption is growing due to the rise in the use of graphite in the production of energy from renewable sources. The Middle East and Africa are gradually developing their graphite resources, and Latin America is looking for rich mineral deposits to meet the world's growing demand for graphite.

North America

• The U.S. government has started up programs to encourage the development of the domestic production of graphite in order to reduce dependence on imports and to ensure the security of the supply of critical minerals.
• In the United States, companies like Graphite One and Northern Graphite are moving ahead with mining and processing projects that are consistent with the growing concern for the environment.
• The demand for high-quality graphite is increasing rapidly, especially for batteries in electric vehicles. Leading carmakers have invested in the local supply chain to ensure a steady supply of the raw material.

Europe

• The European Union has introduced regulations for the use of sustainable materials, which has encouraged investment in the development of sustainable graphite production methods.
• A number of mining companies such as the Talga Group and Syrah Resources are expanding their operations in Europe with the aim of supplying the burgeoning market for batteries with high-purity graphite.
• Hence, the electric car industry in Germany and France is bringing about a substantial increase in the demand for graphite, and is causing the car manufacturers to enter into strategic alliances with the mining companies.

Asia-Pacific

• China still holds a leading position in the world market for graphite, both in terms of production and consumption, and government policy is favourable to the domestic industry.
• During the past few years, with the development of graphite technology, the quality of Chinese graphite has been greatly improved, and its international market share has been rising.
• And the Indians are increasing their graphite production, driven by the increasing demand for electricity.

MEA

• Graphite mining is in its infancy, and countries like Mozambique, which have a rich deposit, are now developing it. Companies like Syrah Resources are investing in large-scale mining operations to meet the rising demand.
• The region is experiencing a growing interest in the use of graphite in the production of energy, especially in the field of solar and wind energy.
• The mining laws, which are gradually changing, are based on sustainable exploitation, which will further increase the attractiveness of the MEA as a supplier of graphite.

Latin America

• Brazil is a country with considerable graphite deposits and a number of mining projects that aim to meet the growing demand for the material, especially for the manufacture of batteries.
• The region’s rich mineral wealth is attracting foreign investment, and companies such as Energizer Resources are developing graphite projects for the world market.
• The government's measures to encourage mining are expected to stimulate the graphite industry, in line with the growing trend towards electric mobility.

Did You Know?

“Graphite is the only non-metal that conducts electricity, and it is therefore indispensable for a number of applications, including batteries and electrical devices.” — U.S. Geological Survey

Segmental Market Size

Natural graphite is playing a vital role in the graphite market and is currently experiencing a steady rise in demand, thanks to its many diverse applications in various industries. The increasing need for energy storage solutions, particularly lithium-ion batteries in electric vehicles (EVs), as well as the increasing demand for advanced materials in the aeronautical and automobile industries, are the main drivers for the market. Regulations promoting the use of sustainable energy and electric mobility are also enhancing this market.

Natural graphite is now being introduced into the EV market at a scale, and the leading companies in the field are Tesla and Panasonic. The main application of natural graphite is anodes for batteries, lubricants, refractory materials, and thermal management. , government regulations and the development of the EV industry are expected to drive the market forward, and technological advances in the extraction and processing of graphite, such as the development of green mining, will also drive the development of the market.

Future Outlook

The Graphite Market is expected to show a significant rise from 2024 to 2035, and the value of the market is expected to rise from $16.7 billion to $29.3 billion, with a compound annual growth rate (CAGR) of 5.15%. This growth is mainly driven by the increasing demand for graphite in various applications, especially in the electric vehicle and new energy industries. The demand for high-quality batteries, which are the main components of graphite, is increasing as the world moves towards a green energy structure. It is expected that the proportion of graphite in the manufacture of batteries will reach about 40% by 2035, which will significantly increase the share of graphite in the market.

The main technological advances and government support are expected to continue to drive the graphite market. Graphite production and recycling techniques are expected to improve, reducing costs and making it more accessible to manufacturers. Also, policies to reduce CO2 emissions and support the development of electric vehicles are likely to create a favourable environment for graphite demand. In addition, the increasing use of graphene in a variety of industries, including electronics and health, will also boost the market. Various industries continue to explore the unique properties of graphite and its derivatives, which will change the market, and opportunities will be created for the whole industry.