Graphite Market Trends

Graphite Market Overview

The Graphite Market size was valued at USD 24679.42 million in 2024 and is expected to reach USD 35734.06 million by 2033, growing at a CAGR of 4.2% from 2025 to 2033.

Global graphite consumption surged to approximately 5.2 million tonnes in 2023, up from 4.7 million tonnes in 2022. Of this volume, synthetic graphite comprised around 67%, reflecting its dominant role due to higher purity. In the United States during 2023, 84,000 tonnes of natural graphite were imported—allemented largely by 89.3% flake and high-purity, 10.4% amorphous, and 0.3% lump graphite. Meanwhile, domestic consumption in the U.S. flatlined at 76,000 tonnes despite no local mine production. Globally, synthetic graphite output reached about 3 million tonnes in 2024, with natural graphite production estimated at 1.3 million tonnes.

Breaking down global end-use in 2023: 46% of graphite demand was for electrodes in steel, 38% for batteries, 11% for refractory and foundry applications, and 5% for lubricants/friction products. China remains the powerhouse, producing about 77% of global output in 2023, with 72% of supply dominated by its synthetic and natural graphite combined. By continent, Asia‑Pacific dominated share with 56–61% of global value in 2024.

Key Findings

Driver: Massive battery adoption—48% of graphite used in electrodes and 38% in batteries in 2023.

Top Country/Region: Asia‑Pacific accounted for 56–61% of global market value in 2024.

Top Segment: Synthetic graphite held roughly 67% of total global supply in 2023.

The graphite market has been undergoing transformative shifts driven by increasing demand from energy storage, metallurgy, and sustainable manufacturing sectors. One of the most significant trends is the explosive growth in electric vehicle (EV) production, which has led to a corresponding surge in demand for battery-grade graphite. In 2023, each EV battery contained approximately 50 to 70 kilograms of graphite, and global EV sales crossed 14 million units, leading to a total anode material requirement of over 800,000 metric tons of graphite. Spherical graphite, essential for lithium-ion batteries, is particularly in high demand, with average spot prices rising from USD 3,000 per ton in 2022 to over USD 4,700 per ton in 2024. This price inflation has drawn attention to supply chain concentration, as China controlled nearly 78% of the world’s natural graphite production in 2024, amounting to 1.27 million tons, which has raised concerns over long-term availability and trade exposure. Another key trend is the strategic push by governments and corporations to diversify graphite sourcing and processing capacities. In response to China's temporary export restrictions on synthetic graphite in 2023, countries like the U.S., Canada, and several EU members began investing heavily in domestic and allied graphite mines and processing facilities.

For instance, the European Union allocated over €5.5 billion toward critical mineral projects in 2024, while the U.S. provided substantial tax incentives under the Inflation Reduction Act to build up its domestic battery supply chain. Concurrently, synthetic graphite production is growing in countries such as South Korea, India, and the U.S., driven by advancements in furnace technologies and increasing preference for higher-purity materials for EVs and electronics. Sustainability is also shaping market trends, with manufacturers introducing green and recycled graphite products. Companies like Vianode and Graphjet have launched initiatives to produce graphite from recycled batteries and bio-based sources such as palm kernel shells. The emergence of these alternatives is helping reduce the environmental footprint of graphite production and aligns with rising environmental, social, and governance (ESG) standards in material sourcing. Additionally, research efforts are intensifying to develop synthetic graphite using waste biomass and polymers, enabling low-emission production methods.

Graphite Market Dynamics

The graphite market exhibits four key dynamics reflecting shifting demand, supply, and regulation:

DRIVER

Surge in Lithium‑ion Battery Usage.

Nearly half of graphite demand in 2023 was tied to steel electrodes, while 38% fed batteries—an increase from 18% in 2022. With global EV adoption climbing—billions invested in gigafactories—the demand trajectory is set to continue.

RESTRAINT

Concentrated Supply in China.

China accounted for 77% of production and 72% of total supply in 2023. In December 2023, China imposed export restrictions that triggered price volatility and raw material uncertainty in consumer markets. Western countries’ efforts to diversify—via U.S. IRA incentives and Australian mining projects—face execution risks due to capital intensity and supply unpredictability.

OPPORTUNITY

Expansion of Non‑Chinese Production.

Major moves like Westwater Resources’ Kellyton facility in Alabama, which secured a 34,000‑tonne offtake deal with SK On, and Azon Graphite in Queensland backed by a US $20 million spin‑out, reflect surging investment outside China. Such growth is bolstered by government funding—for example, U.S. IRA sourcing incentives—and tech investments in purification and ESG practices.

CHALLENGE

High Capital and Energy Costs for Synthetic Graphite.

Synthetic graphite production demands capital-intensive electric furnaces and faces high energy costs. Production cost models show U.S. costs significantly exceed those in China, limiting competitiveness. Energy-price hikes are squeezing synthetic producers, and policy uncertainty deters long-term investment.

Graphite Market Segmentation

Graphite products are categorized by type and application, each segment quantified below:

By Type

Natural Graphite: is extracted from the earth and occurs in three main forms: flake, amorphous, and vein. Among these, flake graphite holds the largest commercial value due to its high carbon content and crystallinity, making it ideal for battery anodes, refractories, and conductive materials. In 2024, global natural graphite production surpassed 1.3 million metric tons, with China dominating with over 1.27 million tons, followed by Brazil (68,000 tons), Mozambique (30,000 tons), and Madagascar (22,000 tons).
Synthetic Graphite: is manufactured by graphitizing petroleum coke at temperatures exceeding 3000°C, resulting in high purity levels (often above 99.95%). This type is crucial for electric arc furnace electrodes, lithium-ion batteries, and nuclear reactors. In 2023, synthetic graphite production exceeded 3 million metric tons globally. Countries like China, India, and the United States are major producers.

By Application

Refractory: This is the largest application segment, accounting for over 42% of global graphite demand in 2024. Refractories are used in steel, iron, glass, and cement industries, where graphite is incorporated into bricks, crucibles, molds, and lining materials to withstand extreme temperatures. The decline in steel manufacturing during the pandemic was offset by rapid recovery in 2023 and ongoing industrialization in Asia-Pacific, especially in India and China.
Battery: The fastest-growing application, representing nearly 38% of total graphite use in 2024. Each electric vehicle (EV) requires between 50 and 70 kg of graphite for the anode of lithium-ion batteries. Over 800,000 metric tons of graphite were consumed in this segment globally in 2023. Spherical graphite, derived from flake graphite, is especially critical here due to its uniform particle shape and conductivity. Growth in EV sales, energy storage systems, and portable electronics is significantly driving this application.
Foundry: sector uses graphite for casting molds, particularly in the automotive and machinery industries, due to its ability to maintain shape and resist thermal shock. This segment contributed approximately 8% to the total graphite market in 2024. Foundry-grade graphite enhances surface finish and dimensional stability of cast metals.
Friction Products: Graphite’s natural lubricity and thermal resistance make it ideal for brake pads, clutch facings, and gaskets, where it improves wear performance and noise reduction. In 2024, friction products made up about 4–5% of total demand. These are especially important in the automotive and aerospace sectors.
Lubricants: Graphite is used in dry lubricants, grease additives, and metal-forming die lubricants, especially in high-temperature environments like steel plants and machinery operations. The lubricant segment accounted for around 3% of the total market in 2024. Its application ensures reduced friction and increased equipment lifespan.

Graphite Market Regional Outlook

Global graphite performance varied significantly across regions:

North America

accounted for USD 2.53 billion, or 20.7% of global graphite revenue. Synthetic graphite led the market, making up 71.3% of segment revenues. Natural graphite showed fastest growth. U.S. production is limited—still reliant on imports (~84,000 t natural graphite in 2023). Domestic synthetic facilities are gaining ground thanks to EV battery demand and IRA incentives but face cost disadvantages vs Chinese producers.

Europe

generated USD 1.46 billion in graphite revenue in 2024, about 12% of the global market. Synthetic graphite dominated revenue share, with Germany leading regional demand. Refractories remained a key application. Europe seeks supply diversification amid reliance on Chinese imports; however, processing capacity lags. Medium-scale specialist facilities for battery-grade and high-purity graphite are under development.

Asia‑Pacific

overwhelmingly leads, contributing USD 17.83 billion or 56–61% of total graphite market value (~USD 29–31 billion) in 2024. China accounts for ~77% of global output and 72% of supply. Local production spans natural flake, amorphous, and synthetic grades. Massive battery, steel, and refractories industries sustain robust demand. Regional surpluses have kept prices steady despite past export control.

Middle East & Africa

remain minor contributors: special graphite sub‑sector was valued at USD 27.8 million in 2024—about 2% of that niche, with Africa at USD 25.8 million and Middle East at USD 27.8 million. Most demand arises from energy, foundry, chemicals, and infrastructure sectors. Local mining is nascent, and imports predominate. Infrastructure development and magnetization toward EV and energy storage applications present early-stage growth opportunities.

List of Top Graphite Companies

Triton Minerals
Hexagon Resources
Mason Graphite
Focus Graphite
Energizer Resources
SGL
Mersen
Graftech International
Graphite India
HEG
Tokai Carbon

SGL Carbon: Europe‑based supplier specializing in synthetic fine‑grain blocks, expanded natural graphite, and battery anode material; holds significant share across mobility, semiconductors, and energy markets.

Tokai Carbon: Previously identified among key global players including Tokai Carbon Co. Ltd and others in North America/Europe.

Investment Analysis and Opportunities

The graphite market has emerged as a promising investment domain, bolstered by material demand, governmental support, and growing supply diversification efforts. In 2024, the global market was valued at an estimated USD 8.4 billion, with projections pointing toward significant expansion in coming years driven by EV battery and steel demand. One compelling investment case arises from the limited geographic spread—China produced 1.27 Mt in 2024, accounting for 78% of natural graphite supply. Such dominance has prompted Western governments to channel capital into domestic or allied projects. Examples include EU's Critical Raw Material Act funding €5.5 billion for projects such as graphite, lithium, cobalt, and manganese to reduce Chinese dependence. In North America, U.S. pioneers like Westwater Resources are gaining traction. Its Coosa County plant in Alabama has signed an offtake deal for 34,000 t of natural graphite anode material with SK On, featuring a strategic partnership announced in 2023–2024. U.S.-based Graphite One also advanced its Alaska “Graphite Creek” project, aiming to move concentrate into advanced anode manufacturing.

The IRA’s production tax credits and battery component incentives are making these vertically integrated initiatives investable despite cost competitiveness issues. Australian-listed firms like Novonix have spun off their Queensland holdings into Axon Graphite with an initial listing of USD 20 million, targeting scalable battery-anode processing for EV markets in both the U.S. and Australia. At the same time, Africa is gaining exploration-level interest: Madagascar produced 89,000 t, Mozambique 75,000 t, India 27,800 t, and Tanzania 25,000 t in 2024. Investment in flake projects such as NextSource’s Molo mine (with 120 million t of 8% ore) highlights Africa's potentia. Graphite offers hedge appeal: its varied applications—battery anodes, refractories, foundry, lubricants, and friction—make it less vulnerable to volatility in single sectors. Institutional investors are gaining exposure via graphite-related ETFs, mining equities, and corporate debt—the IMN has published listings of leading TSX, ASX, and TSXV graphite explorers with promising year-to-date performance.

New Product Development

New product development in the graphite market is being significantly driven by the rise of electric vehicles, energy storage technologies, and the advancement of composite materials. One of the most prominent developments has been the production of coated spherical graphite, which enhances battery performance by reducing first-cycle loss and improving charge efficiency. By 2024, demand for spherical graphite had exceeded 800,000 metric tons, with growing requirements from lithium-ion battery manufacturers across Asia-Pacific, especially in China, South Korea, and Japan. Companies are increasingly shifting towards purification methods that are HF-free (hydrofluoric acid-free) to produce environmentally sustainable battery-grade graphite, particularly as nations implement stricter environmental compliance regulations. In addition, synthetic graphite for solid-state battery technologies is undergoing continuous innovation. In 2023, several manufacturers introduced next-generation anode materials using synthetic graphite blends optimized for high-voltage tolerance and cycle life extension, allowing over 2,500 charge cycles in experimental setups. Graphite is also being incorporated into graphene-enhanced composites, enabling the production of lighter and stronger materials used in aerospace, automotive, and defense applications.

The average carbon content of these advanced graphite forms now exceeds 99.99%, meeting the high-purity demands of nuclear and high-performance sectors. Further, companies are developing expandable graphite products for flame-retardant applications in construction and electronics. In 2023, global consumption of expandable graphite rose to 92,000 metric tons, driven by its integration into insulation panels, plastic components, and coatings. Product formulations now enable graphite to expand 250 to 400 times its original volume, forming an insulating layer that can withstand temperatures beyond 950°C. Moreover, ultra-fine graphite powders, with particle sizes below 5 microns, are being used in advanced lubricants, conductive polymers, and 3D printing. These developments are enabling new market penetration in emerging sectors such as wearable electronics and thermal interface materials. Some manufacturers in 2024 also launched graphite-based inks for flexible electronics, capitalizing on their high conductivity and printability on flexible substrates. With increasing R&D funding and pilot-scale facilities emerging in Europe and North America, graphite’s innovation trajectory is aligned with global efforts towards energy transition, lightweighting, and circular economy.

Five Recent Developments

EU Strategic Projects (June 2025): designated 13 new raw-material initiatives, including graphite mines in Greenland and processing facilities in the UK and Serbia, backed by €5.5 billion investment.
Novonix / Axon Spin-out (April 2024): launched Axon Graphite with USD 20 million funding, combining Mt Dromedary and Burke deposits to supply US and Australian anode materials via IPO.
RapidGraphite Innovation (April 2024): received A$3 million for synthetic graphite development from waste, supporting a waste-to-graphite circular material pathway.
Malaysia Green Facility (late 2024/early 2025): Technology began building a palm-shell-based synthetic graphite plant in Malaysia with output of 3,000 t/yr, aimed for 100,000 t/yr capacity in the U.S..
Resonac Electrode Plant Closures (May 2025): Holdings shut down graphite electrode plants in China and Malaysia, tightening global supply—boosting demand for alternatives such as HEG and Graphite India.

Report Coverage of Graphite Market

The graphite market report delivers comprehensive coverage across all major dimensions, including product types, applications, regions, competitive landscape, investment trends, and emerging innovations. It begins with an in-depth analysis of product types, focusing on natural graphite—including flake, amorphous, and vein types—and synthetic graphite, such as electrode blocks, powder forms, and spherical grades. In 2024, natural graphite production stood at approximately 1.3 million tons globally, while synthetic graphite output reached over 3 million tons. Application segmentation is examined in detail, highlighting use across refractory materials, foundries, batteries, friction products, and lubricants. Batteries alone accounted for roughly 38% of global graphite demand in 2023, while electrodes comprised approximately 46%, reflecting the dominance of energy storage and steel production industries. Regional and country-level dynamics are thoroughly assessed. The Asia-Pacific region maintained a dominant share of global graphite consumption—estimated between 56% and 61% in 2024—led by China's output of 1.27 million tons. North America remained a high-import region, bringing in over 84,000 tons of natural graphite in 2023, while simultaneously advancing vertically integrated domestic supply chains.

Europe is analyzed as a mid-tier consumer heavily reliant on imports, whereas the Middle East and Africa, with countries such as Madagascar and Mozambique, are highlighted for their export potential. Leading companies like SGL Carbon and Tokai Carbon are identified as holding the largest market shares, supported by robust production facilities and diversified product portfolios. The report also evaluates major investment activities, including U.S. and EU government funding initiatives, such as the European Union’s €5.5 billion in critical raw material investments and the U.S. Inflation Reduction Act’s incentives for battery material processing. Pricing trends are analyzed in the context of market dynamics, noting flake graphite prices ranging between USD 2,000–2,400 per ton and spherical graphite between USD 4,000–4,700 per ton, alongside volatility driven by Chinese export restrictions and raw material costs. Furthermore, the report emphasizes new product developments such as recycled graphite anodes, biomass-derived synthetics, palm-shell-based graphite, and graphene-enhanced hybrid materials.