Graphite Electrode Market Size is projected to reach USD 13.58 billion by 2031, growing at a CAGR of 4.40%: Straits Research

The global graphite electrode market is being driven by the growing usage of batteries in various applications, which are known to improve battery performance when combined with graphite electrodes. A shift towards electric arc furnaces from conventional blast furnaces owing to their advantages is expected to boost market growth.New York, United States

New York, United States, March 19, 2024 (GLOBE NEWSWIRE) -- Large, cylindrical graphite electrodes are typically manufactured with coal tar pitch, premium petroleum needle coke, and a few additives. They convert the power source's electrical energy into heat for melting scrap metal. Due to graphite's high thermal conductivity and low electrical resistance, these electrodes can generate temperatures as high as 1,600 degrees Celsius. Graphite Electrode is utilized primarily in Electric Arc Furnaces (EAF) and Blast Oxygen Furnaces (BOF) to produce steel and melt ferrous alloys. These electrodes have a high electrical conductivity, are resistant to high heat dissipation, and possess exceptional mechanical strength.

Download Free Sample Report PDF @

Rising Demand to Enhance Battery Performance Drives the Global Market

According to Straits Research, "The global graphite electrode market was valued at USD 9.22 billion in 2022. It is estimated to reach USD 13.58 billion by 2031, growing at a CAGR of 4.40% during the forecast period (2023–2031)." The demand for graphite in numerous applications, lithium-ion batteries being one of the most significant, drives the graphite electrode market. The broad adoption of lithium-ion batteries may be observed in various applications such as electric vehicles (EVs), portable devices, and renewable energy storage systems. Therefore, any advancement or improvement in lithium-ion battery technology can significantly impact the graphite electrode market.

Substituting 15% of graphite with Ionisil in a water-based CMC/SBR binder system produces electrodes with a stable capacity of 740 mAh/g, three times that of a pure graphite anode. This increased capacity substantially improves the performance of lithium-ion batteries, allowing for longer battery life and greater energy storage capacities. Thus, the trend above propels the global graphite electrode market's expansion.

Rising Availability of Steel Scrap in China Creates Tremendous Opportunities

China's scrap consumption is rising rapidly due to the shutdown of substandard steel capacities caused by the dangerous effects of carbon dioxide emissions from induction furnaces. This development has aided China's transition to the surging use of electric arc furnaces (EAF) for steel production. According to official data, the country imported 552,892 tons of steel scrap in 2021, up 1,938% from 2020.

China is expected to increase its steel scrap consumption by 23% to 320 million tons to meet its climate commitments by 2025. China's efforts to increase its steel production through EAFs, which require graphite electrodes, are expected to increase demand for them in the coming years. Utilizing EAF would favor scrap steel over virgin ore. It is anticipated that the increase in EAF production will increase steel scrap usage in the country, thereby creating enormous opportunities for the growth of the graphite electrode market.

Regional Analysis

Asia-Pacific is the most significant global graphite electrode market shareholder and is expected to grow substantially during the forecast period. The development in the Asia-Pacific region can be attributed to China and India's expanding steel industries. Graphite electrodes are an indispensable part of the steelmaking process. They are the primary source of heat in electric arc furnaces for smelting scrap metal and producing new steel. Rapid infrastructure development in these nations fuels steel demand, which drives market expansion over the forecast period. According to secondary research, China allocated USD 573 billion in SPBs to local governments in 2021, of which 97% had been issued by December 15, 2021. Due to the increasing investments of regional industry players, the Asia-Pacific region is anticipated to experience rapid growth over the forecast period. In October 2021, JSW Steel invested INR 150 billion to build a steel plant in Jammu and Kashmir and fuel manufacturing in the region. Therefore, the factors above support market growth over the forecast period.

North America, particularly the United States, has a robust manufacturing infrastructure, which supports the development of the graphite electrode market. The region possesses advanced manufacturing facilities, knowledge, and technologies for producing graphite electrodes. These established capabilities enable North American manufacturers to efficiently produce graphite electrodes for industries such as steel, aluminum, and electric vehicles. The regional growth is due to the increase in steel production. According to an estimate, the American iron and steel industry contributed more than USD 520 billion in revenue and nearly two million jobs to the U.S. economy in 2017. These employees received compensation and benefits totaling close to USD 130 billion. The sector collected USD 56 billion in federal, state, and local taxes. A strong manufacturing infrastructure promotes competitiveness, innovation, and production efficiency. It also enables manufacturers to satisfy domestic demand and expand export capacities, contributing to market growth.

Key Highlights

  • Based on electrode grade, the global graphite electrode market is bifurcated into ultra-high power (UHP), high power (SHP), and regular power (RP) electrodes. The ultra-high power (UHP) electrode segment dominates the global market and is expected to expand substantially over the forecast period.
  • Based on application, the global graphite electrode market is segmented into electric arc furnaces, basic oxygen furnaces, and non-steel applications. The electric arc furnace segment owns the highest market share and is expected to expand significantly during the forecast period.
  • Asia-Pacific is the most significant global graphite electrode market shareholder and is expected to grow substantially during the forecast period.

Competitive Players

The key global graphite electrode market players are GrafTech International, Resonac Holdings Corporation, Fangda Carbon New Material Co., Ltd., Zhongze Group, Dan Carbon, Kaifeng Pingmei New Carbon Materials Technology Co., Ltd, Nantong Yangzi Carbon Co., Ltd., Nippon Carbon Co Ltd., SANGRAF International Inc., SEC CARBON, LIMITED., Tokai Carbon Co., Ltd., and others.

Market News

  • In April 2023, GrafTech International Ltd., a leading manufacturer of graphite electrode products essential to the manufacturing of electric arc furnace steel, announced the opening of a new sales office in Dubai, United Arab Emirates.
  • In July 2023, Enevate, a U.S.-based innovator of battery technologies for electric vehicles (EVs) and other markets, and JR Energy Solution (JR ES), a leader in the design of high-performance lithium-ion battery electrodes and cells, announced a joint plan to construct a battery cell electrode manufacturing facility in the U.S.

Global Graphite Electrode Market: Segmentation

By Electrode Grade

  • Ultra-High Power (UHP)
  • High Power (SHP)
  • Regular Power (RP)

By Applications

  • Electric Arc Furnace
  • Basic Oxygen Furnace
  • Non-Steel Applications

By Regions

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East and Africa

Get Detailed Market Segmentation @ 

About Straits Research Pvt. Ltd.

Straits Research is a market intelligence company providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision-makers. Straits Research Pvt. Ltd. provides actionable market research data, especially designed and presented for decision making and ROI.

Whether you are looking at business sectors in the next town or crosswise over continents, we understand the significance of being acquainted with the client’s purchase. We overcome our clients’ issues by recognizing and deciphering the target group and generating leads with utmost precision. We seek to collaborate with our clients to deliver a broad spectrum of results through a blend of market and business research approaches.

For more information on your target market, please contact us below:

Phone: +1 646 905 0080 (U.S.)

+91 8087085354 (India)

+44 203 695 0070 (U.K.)


Follow Us: LinkedIn | Facebook | Instagram | Twitter