Global Graphite Market

Key Market Insights:

The global graphite market was valued at USD 22.9 billion in 2024 and is projected to reach USD 36.2 billion by 2031, growing at a CAGR of 6.8% during the forecast period. Graphite, a naturally occurring form of crystalline carbon, is widely used in applications ranging from refractories to electric vehicle batteries due to its thermal stability, conductivity, and lubricating properties.

The increasing adoption of electric vehicles (EVs), growing demand for energy storage systems, and industrial advancements in steel, foundry, and electronics sectors are driving the market growth. Technological innovations in purification processes, synthetic graphite production, and sustainable sourcing of natural graphite are reshaping the industry landscape. China remains the dominant supplier, but strategic investments in North America and Europe are diversifying supply chains

Latest Trends:

Rising Demand for Battery-Grade Graphite in EV and Energy Storage Systems

The graphite market is undergoing a structural shift as global decarbonisation efforts and the energy transition accelerate. Graphite is a critical material in lithium-ion batteries, used both in anodes and current collectors. With the global surge in EV adoption and stationary energy storage installations, demand for high-purity battery-grade graphite—both natural and synthetic—is rising sharply.

Emerging trends include vertical integration by battery manufacturers to secure graphite supply, investment in graphite recycling technologies, and geographic diversification of supply chains to reduce dependency on China. The development of spherical graphite and synthetic graphite with lower energy footprints is also gaining traction as sustainability becomes a critical focus area.

Driving Factors:

Proliferation of Electric Vehicles and Energy Storage Catalyses Graphite Demand

The rapid electrification of transportation and increased reliance on renewable energy systems are key growth drivers for the graphite market. Each electric vehicle battery requires 50–100 kg of graphite, making it one of the largest materials by weight in lithium-ion battery cells. Countries implementing zero-emission vehicle mandates are pushing automakers to scale up EV production, directly boosting graphite consumption.

Additionally, large-scale battery energy storage systems (BESS) deployed for grid balancing and renewable energy integration also use significant quantities of graphite. Governments in the U.S., Europe, and Asia are supporting the establishment of local battery manufacturing hubs, which in turn drive the demand for domestic graphite supply and processing infrastructure.

Restraining Factors:

Environmental Regulations and Supply Chain Concentration Present Key Challenges

Despite strong demand signals, the graphite industry faces several constraints. Natural graphite mining and processing have raised environmental concerns due to habitat disruption, water pollution, and high carbon emissions. Stringent regulations in regions like Europe and increasing scrutiny on ESG compliance can delay projects or restrict expansions.

Furthermore, over 65% of global graphite supply—especially natural flake graphite—originates from China, creating a high dependency risk. Trade tensions, export restrictions, and geopolitical uncertainties have prompted buyers to seek alternative sources, yet new projects in Africa, North America, and Australia face long permitting cycles and infrastructure gaps.

Segmental Analysis

By Type:

Natural Graphite Leads in Volume; Synthetic Graphite Dominates in Value

The global graphite market is segmented into natural and synthetic graphite. Natural graphite, accounting for 54.7% of volume share in 2024, is favoured in traditional applications like refractories and brake linings. Within natural graphite, flake graphite is most sought after due to its suitability for battery anodes. Synthetic graphite, derived from petroleum coke, leads in revenue due to its higher purity and tailored properties, particularly in electric arc furnaces and lithium-ion batteries. It is projected to grow at a CAGR of 7.2%, fueled by surging EV demand and consistent quality requirements in battery manufacturing.

By Form:

Flake Graphite Gains Traction for Battery Applications

Based on form, the market is divided into flake, amorphous, and vein graphite. Flake graphite dominated the segment with a 42.3% share in 2024, supported by its high crystallinity and conductivity. It is a crucial feedstock for spherical graphite used in EV batteries. Amorphous graphite, used in lubricants and foundry operations, retains strong demand in industrial sectors. Vein graphite, rare and mined primarily in Sri Lanka, has niche uses in electric brushes and high-purity applications.

By Application:

Refractories and Batteries Remain Primary Use Cases

The graphite market’s application segmentation includes refractories, batteries, foundries, lubricants, friction products, and others. Refractories held the highest share at 33.6% in 2024, supported by steel and metallurgy industries. However, batteries are projected to be the fastest-growing segment, expanding at a CAGR of 8.3% as EVs and energy storage dominate demand. Graphite is increasingly replacing other materials in anode applications due to its abundance, conductivity, and cost-effectiveness. Advanced applications like fuel cells, nuclear reactors, and 3D printing also present emerging opportunities.

By End-User Industry:

Automotive and Energy Storage Sectors Fuel Growth

The market is categorised into metallurgy, automotive, electronics, energy storage, and others. Metallurgy accounted for the largest share (39.1%) in 2024, with wide applications in steel, foundry, and welding industries. However, automotive and energy storage are forecasted to grow the fastest, propelled by battery-electric vehicle production and grid-level BESS projects. These sectors are drawing significant investment from both public and private stakeholders aiming to localize battery material supply.

Regional Insights:

The graphite market is assessed across North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.

• Asia Pacific holds the dominant position, accounting for over 50% of the global market in 2024. China leads both production and consumption, driven by strong steel output, battery manufacturing, and local EV adoption. India and South Korea are also emerging as key markets due to their growing electronics and energy sectors.
• North America is rapidly scaling up its domestic graphite production to reduce reliance on imports. The U.S. is witnessing significant investments in battery-grade graphite processing, especially with the support of the Inflation Reduction Act and DOE funding.
• Europe is focused on sustainable and circular graphite sourcing. Countries like Germany and France are investing in recycling facilities, synthetic graphite production, and green mobility initiatives. EU regulations promoting local battery value chains are supporting demand.
• Latin America, led by Brazil, is rich in natural graphite reserves and is attracting interest from global miners and processors looking to diversify sourcing.
• The Middle East & Africa presents untapped potential, with countries like Mozambique and Tanzania emerging as key flake graphite suppliers. Infrastructure challenges remain, but long-term prospects are strong.

Key Industry Insights:

Supply Chain Diversification and Vertical Integration Define the Future of the Graphite Market

With global graphite demand outpacing supply, industry stakeholders are focusing on strategic collaborations, long-term offtake agreements, and backward integration. OEMs and battery manufacturers are securing raw materials through direct partnerships with miners and processors. Companies are also investing in synthetic graphite production from renewable feedstocks and petroleum coke alternatives.

Recycling of graphite from spent batteries is gaining traction as a secondary source, especially in Europe and North America. Advances in purification, coating, and shaping technologies are helping meet stringent battery performance and safety standards. Governments are incentivizing local processing to build resilient and sustainable battery material ecosystems.

Key Industry Players:

• Syrah Resources Ltd.
• Imerys Graphite & Carbon
• SGL Carbon SE
• Tokai Carbon Co., Ltd.
• Showa Denko Materials Co., Ltd.
• GrafTech International Ltd.
• Northern Graphite Corporation
• Elkem ASA
• Asbury Carbons Inc.
• Triton Minerals Limited

Key Developments:

• March 2025: Vianode, a company specialising in advanced battery materials, launched its first high-performance solution using recycled graphite as part of its next-generation materials series. This innovative product, developed from recycled battery-grade graphite, was designed to address the increasing demand for sustainable solutions in electric vehicle (EV) and battery manufacturing.
• December 2023: Graphjet Technology, a prominent developer of patented methods for producing graphite and graphene from agricultural waste, announced that it had achieved significant breakthroughs in the graphitization process using its proprietary green graphite production technology. This innovation marked the first instance globally of artificial graphite being produced directly from palm kernel shells—a commonly discarded byproduct in Malaysia and Indonesia. Pilot-scale trials confirmed that Graphjet’s artificial graphite reached purity levels as high as 99.99%, validating the effectiveness of its technology and its potential to compete with both mined and other synthetic graphite production methods.
• February 2025: Northern Graphite started supplying Battery Anode Material Samples from LDI Graphite.