Graphite Mining Market Analysis

Global Graphite Mining Market Overview

Graphite Mining Market Size was valued at USD 15.2 Billion in 2022. The Graphite Mining industry is projected to grow from USD 16.0 Billion in 2023 to USD 25.24 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.80% during the forecast period (2024 - 2032).The growing demand for new energy vehicles like electric vehicles, the increase in the volume of steel production, construction activities, and the rising demand for fuel-efficient aircraft through graphite-made materials are expected to be a significant market driver for the Graphite Mining Market.Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Graphite Mining Market Trends

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  Increase in demand for electric vehicles and the increase in the volume of construction activities are driving the market growth

  
  

Market CAGR for graphite mining is being driven by the Increase in Demand for Electric vehicles and the Increase in the volume of construction activities. With the continuous advancement in technology, consumers are increasingly transitioning from traditional vehicles to electric hybrid vehicles. The rise of electric vehicle production is evident in various countries, such as in the European Union, where the production of electric vehicles increased from 3% in 2019 to 11% in 2020, according to the European Automobile Manufacturing Association. Globally, electric car registrations surged by 41% in 2020, with China and Europe emerging as the largest electric vehicle markets, as reported by the International Energy Agency. Graphite plays a crucial role in manufacturing lithium-ion batteries used as fuel in new-generation vehicles like electric and autonomous vehicles. The escalating production of electric vehicles is expected to drive an increased demand for graphite used in lithium-ion batteries, positively impacting the growth of the graphite industry.

Additionally, the growth of emerging economies, rapid urbanization, and various infrastructural developments undertaken by countries have led to an upsurge in construction activities. In China, for instance, the construction industry experienced a notable growth of 22.8% in Q1 of 2021, following a series of positive growth rates in the preceding quarters, as reported by the National Bureau of Statistics. Moreover, initiatives such as the approval of projects for affordable rental homes in China's big cities by the State Council for the People’s Republic of China further contribute to increased construction. In the United States, the total construction spending in November 2021 reached $1,625 billion, marking a 0.4% increase from October and a 9.3% increase compared to November 2020, according to the U.S. Census Bureau. As a result, it is anticipated that throughout the projection period, demand for the Graphite Mining Market will increase due to the Increase in Demand for Electric vehicles and Increase in the volume of construction activities. Thus, driving the Graphite Mining Market revenue.

Graphite Mining Market Segment Insights

Graphite Mining Market Type Insights

The Graphite Mining Market segmentation, based on Type includes Flake Graphite, Amorphous Graphite, and Others. The flake graphite segment dominated the market, accounting for 58% of market revenue (8.8 Billion). The diverse applications of flake graphite, including its transformation into graphite emulsion and expanded graphite, play a crucial role in driving the graphite mining market. The demand for flake graphite as a raw material in various industries, such as lubricants, mold release agents, wire drawing agents, and conductive coatings, contributes to the growth of graphite mining operations. Moreover, the processing of flake graphite into expanded graphite, which serves as a key raw material for flexible graphite products like seals and composite products, further enhances the market demand. The versatility of flake graphite and its varied applications in industrial processes create a sustained need for a reliable and consistent supply of graphite from mining sources.

Figure 1: Graphite Mining Market, by Type, 2022 & 2032 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Graphite Mining Market Application Insights

The Graphite Mining Market segmentation, based on Application includes Pencil Core, Refractory Material, Conductive Material, Lubricant Material, Carbon Making, Radiation Protection Material, and Others. The Refractory Material segment dominated the market, accounting for 58% of market revenue (8.8 Billion). The substantial growth and heightened production in sectors like metal manufacturing have driven an increased reliance on graphite-based refractories. For example, according to the World Steel Association's July 2021 report, crude steel production reached 161.7 million tons (Mt), marking a 3.3% rise from July 2020. Projections indicate a further 2.2% increase in steel demand over the next year. The upsurge in steel production is anticipated to elevate the demand for graphite blocks, particularly in metallurgical furnaces. Consequently, this heightened usage of graphite is expected to positively influence the demand for graphite in refractories, contributing to the overall growth of the graphite industry in refractories.

Graphite Mining Market Regional Insights

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The anticipated expansion of the Graphite Mining market in North America can be attributed to several key factors. Tesla's gigafactory and its commitment to sourcing materials from North America have contributed significantly to the increasing demand for graphite produced in the United States. The company has plans to establish additional gigafactories in the coming years, setting a trend that other manufacturers are now following. Benchmark Mineral Intelligence reported that as of March 2021, there were 200 Mega battery cell factories in the pipeline, slated for development by 2030. Another potential source of demand for graphite is the US government, particularly through the US Department of Defense's stockpile, which necessitates materials like fine-grain, high-density graphite.

Further, the major countries studied in the market report are the US, Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: GRAPHITE MINING MARKET SHARE BY REGION 2022 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's Graphite Mining Market accounts for the second-largest market share In Europe, Benchmark Mineral Intelligence predicts that the demand for battery cells will surpass 220 GWh by 2025. The overall battery market's need for natural flake graphite is expected to be 5.4 times greater in 2025 than the demand observed in 2020. According to Roskill, considering current technologies, the demand for raw material graphite could nearly quintuple between 2021 and 2030, reaching approximately 1.8 million tons. This estimate encompasses both synthetic and natural graphite. Further, the German Graphite Mining Market held the largest market share, and the UK Graphite Mining Market was the fastest-growing market in the European region

The Asia-Pacific Graphite Mining Market is expected to grow at the fastest CAGR from 2023 to 2032. China stands as one of the world's leading graphite manufacturers, primarily driven by substantial demand from emerging sectors such as lithium-ion battery production, electronics, steel manufacturing, the solar industry, and nuclear applications. In 2021, the country contributed 820 thousand tons to graphite mine production, according to the US Geological Survey. From January to October 2022, China strategically increased its pig iron and crude steel production capacities by 28.8 million mt/year and 23.1 million mt/year, respectively, through capacity swaps. This resulted in a net gain of 8.3 million mt/year in pig iron production capacity and 6 million mt/year in new crude steel production capacity for the year 2022. The construction sector plays a pivotal role in propelling steel demand in China, constituting nearly two-thirds of the country's total steel consumption. Moreover, China’s Graphite Mining Market held the largest market share, and the Indian Graphite Mining Market was the fastest-growing market in the Asia-Pacific region.

Graphite Mining Market Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the Graphite Mining market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Graphite Mining industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Graphite Mining industry to benefit clients and increase the market sector. In recent years, the Graphite Mining industry has offered some of the most significant advantages to the development and progress of various technological and industrial sectors. Major players in the Graphite Mining Market, including Alabama Graphite, American Graphite Technologies, Anson Resources, Bora Bora Resources, China Carbon Graphite Group, First Graphite, Focus Graphite, Graphene Technologies, Hexagon Resources, Leading Edge Materials, Northern Graphite, Ontario Graphite Ltd, Mega Graphite Inc are attempting to increase market demand by investing in research and development operations.

Anson Resources Limited (ASX: ASN) is an Australia-based exploration and development company with a primary focus on advancing the Paradox Lithium Project in the Paradox Basin in southern Utah. The company aims to transform this project into a significant lithium-producing operation to cater to the growing electric vehicle (EV) battery market by providing high-quality lithium carbonate. An additional objective is to extract substantial quantities of high-value bromine from the same project. Anson has expanded its presence in the region by acquiring the Green River Lithium Project, which shares key geological similarities with the Paradox Project. The company plans to accelerate exploration and development activities at Green River to augment its Mineral Resource base in the Paradox Basin, facilitating an increased production profile for its envisioned lithium production operation. Anson's diversified portfolio also includes exploration assets like the Yellow Cat Uranium Project in Utah, with high prospects for vanadium, and three exploration projects covering 458km² in the Yilgarn Craton of Western Australia. Notably, one of these projects, the Bull Project, is situated adjacent to Chalice Mining Limited’s (ASX: CHN) Julimar Ni-Cu-PGE Project, renowned for its world-class status in nickel, copper, and platinum group elements.

First Graphene Ltd. is a publicly listed company on the Australian Securities Exchange (ASX: FGR), with its primary manufacturing facility located in Henderson, near Perth, WA. Recently incorporated in the UK as First Graphene (UK) Ltd., the company holds a Tier 1 partnership status at the Graphene Engineering and Innovation Centre (GEIC) in Manchester, UK. As a foremost graphene supplier, First Graphene specializes in the commercial-scale production of high-quality graphene products. The company operates on a robust manufacturing platform, leveraging a secure supply of high-purity raw materials and maintaining an established graphene production capacity of 100 tonnes per year.

Key companies in the Graphite Mining Market include

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  Alabama Graphite

  
  


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  American Graphite Technologies

  
  


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  Anson Resources,

  
  


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  Bora Bora Resources

  
  


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  China Carbon Graphite Group

  
  


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  First Graphite

  
  


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  Focus Graphite

  
  


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  Graphene Technologies

  
  


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  Hexagon Resources

  
  


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  Leading Edge Materials

  
  


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  Northern Graphite

  
  


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  Ontario Graphite Ltd

  
  


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  Mega Graphite Inc

  
  

Graphite Mining Industry Developments

October 2021: Mason Graphite Inc. established a joint venture with Thomas Swan Co & Limited named Black Swan Graphene. This collaboration allows Mason Graphite to leverage Thomas Swan's graphene processing technology, generating a substantial demand for graphite for the company.

September 2021: Northern Graphite Corporation entered into a binding purchase and sale agreement to secure full ownership (100%) of the Lac des Iles graphite mine in Quebec and the Okanjande graphite mine in Namibia. This acquisition positions the company as the sole North American and the third-largest non-Chinese graphite producer.

Graphite Mining Market Segmentation

Graphite Mining Market Type Outlook

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  Flake Graphite

  
  


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  Amorphous Graphite

  
  


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  Other

  
  

Graphite Mining Market Application Outlook

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  Pencil Core

  
  


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  Refractory Material

  
  


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  Conductive Material

  
  


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  Lubricant Material

  
  


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  Carbon Making

  
  


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  Radiation Protection Material

  
  


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  Other

  
  

Graphite Mining Market Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • Italy
  
  
  • France
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • South Korea
  
  
  
  


• Latin America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of Latin America
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of Middle East & Africa