Graphite Market Trends, Size, Share, Growth, Analysis 2031

The Graphite Market size is expected to reach US$ 39,698.2 million by 2031 from US$ 17,718.40 million in 2024. The market is estimated to record a CAGR of 12.4% from 2025 to 2031.

Executive Summary and Global Graphite Market Analysis

The global graphite market is undergoing substantial expansion, primarily fueled by increasing demand from key sectors like batteries, steel production, electronics, and automotive. Graphite's critical role in lithium-ion batteries is particularly noteworthy, directly linking its growth to the surging electric vehicle (EV) market.

While China remains the dominant force in global graphite supply, other significant contributors include India, Brazil, and Canada. The broader shift towards sustainable energy solutions is also a major driver, necessitating high-quality graphite for various energy storage applications.

The industry's future is being shaped by technological advancements in mining, processing, and recycling. However, the market faces challenges from environmental concerns and potential supply chain disruptions. Furthermore, the increasing adoption of synthetic graphite, known for its superior performance, is actively reshaping the overall market landscape.

Graphite Market Segments Covered

Graphite Market By Type

Natural

Synthetic

Graphite Market By Form

Powder

Flake

Granules

Electrode

Graphite Market By Application

Batteries

Lubricants

Refractories

Friction Products

Electrodes

Graphite Market Regions and Countries Covered

North America

Europe

Asia Pacific

Middle East and Africa

South and Central America

Graphite Market leaders and key company profiles

SGL Carbon

Imerys Graphite & Carbon

EuroGraphite

Graphite India Ltd.

Graphit Kropfmühl GmbH

China Graphite Group Limited

Ceylon Graphite Corp

Graphite Central

Nanjing GRF Carbon Material Co Ltd

Graphite Market Drivers and Opportunities:

Surge in Steel Production

Steel is manufactured from iron ore, consisting of iron, oxygen, and other minerals. Raw materials required for steelmaking are transformed into steel via two different processes: the blast furnace/basic oxygen furnace and the electric arc furnace (EAF). Graphite Market plays a critical role in modern steelmaking processes; it is used in the manufacturing of electrodes for EAFs.

EAF is a popular method of producing steel, particularly in regions with access to scrap steel. These furnaces require large quantities of high-quality graphite electrodes to melt scrap metal efficiently. As global steel demand continues to grow, especially in rapidly developing countries such as China, India, and Southeast Asian countries, the need for graphite electrodes also rises.

Graphite electrodes are integral for producing steel through EAF technology due to their high thermal conductivity, electrical resistance, and ability to withstand extreme temperatures. Nearly 70% of the world’s graphite production is used in electric arc furnace steelmaking.

Scaled-up steel production is attributed to the expanding demand for steel in various industries, including construction, automotive, and infrastructure development. Thus, steel consumption surges as these sectors grow with urbanization and industrialization in emerging economies, directly boosting the demand for graphite electrodes. Additionally, the EAF method has gained more popularity due to its energy efficiency and lower environmental impact compared to traditional blast furnaces.

Thus, the role of Graphite Market has become even more critical in steelmaking. With further advancements in steel production techniques and the shift toward greener as well as more sustainable steelmaking methods, the demand for high-quality, environmentally sourced graphite is expected to continue rising in the future as well. This upward trajectory in steel production, combined with the increasing reliance on EAFs, bolsters the graphite market growth.

Rise in Demand for Electric Vehicles

Graphite Market plays an essential role in the production of lithium-ion batteries, which serve as the primary power source for electric vehicles (EVs). It is a key component of the anode of these batteries, wherein it helps store and release energy. As the adoption of EVs accelerates, the demand for high-quality graphite to manufacture these batteries has surged.

Lithium-ion batteries require a substantial amount of graphite because of its high efficiency in energy storage, owing to its ability to withstand multiple charge and discharge cycles. Graphite’s unique properties, including high electrical conductivity and stability, make it an ideal material for anodes in these batteries. As global sales of EVs grow, particularly in markets such as China, Europe, and North America, the demand for graphite to support battery production has risen sharply.

According to the International Energy Agency's annual Global Electric Vehicle Outlook, over 10 million electric cars were sold worldwide in 2022, and the number grew by 35% in 2023 to reach 14 million. As the automotive industry witnesses a transformative shift toward EVs, the role of graphite has become more crucial. Thus, the rising demand for EVs is significantly driving the global graphite market toward growth.

Graphite Market Size and Share Analysis

Based on type, the market is segmented into natural and synthetic. The synthetic segment held the largest graphite market share in 2024. Synthetic graphite has high demand in various end-use industries, primarily due to its superior properties and rising scope of applications in high-tech industries. Synthetic Graphite Market is highly valued for its excellent thermal and electrical conductivity, low impurity levels, and high chemical resistance, making it ideal for industries such as energy storage, metallurgy, and aerospace.

It has widespread use in lithium-ion batteries, particularly for EVs and renewable energy storage systems. Anodes of lithium-ion batteries are commonly made of synthetic graphite due to their enhanced performance, longer lifecycle, and higher energy density than natural graphite. With the rapid expansion of the EV market and the global push for green energy solutions, the demand for synthetic graphite would continue to surge in the coming years.

Based on form, the Graphite Market is segmented into powder, flake, granules, electrode, and others. The flake segment held the largest graphite market share in 2024. Graphite flakes are flat, thin, plate-like particles that are produced by the natural exfoliation or mechanical processing of graphite. Similar to the powder form, the flake form also exhibits excellent lubricating properties, but it can provide more stability in certain applications due to the larger size and plate-like shape or particles.

Graphite flakes can be integrated into materials such as plastics and metals to improve their properties, such as strength, conductivity, and heat resistance. In some battery applications, it is used to enhance the performance of electrodes.

In terms of application, the Graphite Market is segmented into batteries, lubricants, refractories, friction products, electrodes, and others. The electrodes segment held the largest graphite market share in 2024. Graphite is widely used as an electrode material due to its excellent electrical conductivity, high thermal stability, and resistance to oxidation at elevated temperatures.

In particular, graphite electrodes are crucial in electric arc furnaces for steelmaking, where they facilitate the melting of scrap metal by conducting electricity. The material’s ability to withstand high temperatures without degrading makes it ideal for industrial applications that involve intense heat. Additionally, graphite electrodes are used in other sectors, including aluminum production, chemical industries, and electric discharge machining (EDM), where precision cutting is required.

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Author’s Bio:

Suryakant Gadekar

Senior Market Research Expert at Business Market Insights