New York, United States, April 04, 2024 (GLOBE NEWSWIRE) -- Synthetic graphite is used as the anode material in lithium-ion batteries that power electric automobiles. Recent advancements in the production of electric vehicles (EVs) have increased awareness of synthetic graphite. It is an essential component of the lithium-ion battery anodes used to power these vehicles. More natural graphite is used as an anode by battery users in their cells. However, they are still combining it with synthetic graphite because of cheaper manufacturing costs, worries about the environment and the CO2 impact, and the ease of scaling supplies. However, the ratio of natural to synthetic graphite in car batteries is 10% natural and 90% synthetic due to the low purity of natural graphite materials.
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High Demand in Metallurgy Segment Drives the Global Market
Due to recent advancements in its purification and modification, natural graphite replaces synthetic graphite in situations where it was previously the only choice. In metallurgical applications, graphite is utilized in various forms, including electrodes, refractories, bricks, monolithic crucibles, etc. In the electric arc furnace (EAF), synthetic graphite produces steel, ferroalloys, and aluminum. In metallurgical processes, such as melting scrap iron in an electric furnace, polishing ceramics, making compounds like calcium carbide, and other processes requiring high-temperature and clean energy sources, synthetic graphite electrodes are used as a source of energy. The use of synthetic graphite in metallurgical applications is anticipated to be driven by the increased global production of crude steel and aluminum.
Increasing Demand for Electric Vehicles Creates Tremendous Opportunities
Synthetic graphite is used as the anode material in lithium-ion batteries that power electric automobiles. Recent advancements in the production of electric vehicles (EVs) have increased awareness of synthetic graphite. It is an essential component of the lithium-ion battery anodes used to power these vehicles. More natural graphite is used as an anode by battery users in their cells. However, they are still blending it with synthetic graphite due to lower manufacturing costs, worries about the environment and the CO2 impact, and the simplicity of scaling supply. However, the ratio of natural to synthetic graphite in automotive batteries is 10% natural and 90% synthetic due to the low purity of natural graphite materials. The global market for electric vehicles has advanced significantly during the last ten years. Nevertheless, the business is anticipated to grow further over the next ten years because of growing concerns about emissions and evolving environmental policies by central governments worldwide, notwithstanding the recent surge in EVs globally.
Competitive Players
The global synthetic graphite market’s major key players are Asbury Carbons, Beiterui New Material Group Co. Ltd, Shanshan Technology, Shenzhen Sinuo Industrial Development Co. Ltd, Mitsubishi Chemical Corporation, Imerys Graphite & Carbon, Mersen Corporate Services SAS, Graphit Kropfmhl GmbH, Shamokin Carbons, Showa Denko K.K.
Regional Analysis
Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.66% during the forecast period. Due mainly to the enormous demand from developing industries like the manufacture of lithium-ion batteries, electronics, steel, solar energy, and nuclear power, China is one of the world's largest graphite producers. China surpassed Japan and Korea, which had occupied the second and third spots for the previous ten years, to claim the top position. The favorable government policies, a sizable manufacturing base, protectionist regulations, and rising battery demand are primarily responsible for improving position, all of which are positive signs for the Chinese battery market.
Additionally, China wants to significantly increase the amount of solar energy it consumes, increasing demand for market research in China throughout the projection period. India has a potential demand for lithium-ion batteries and supporting raw materials, including synthetic graphite. India is one of the biggest emerging markets for electric vehicles in the coming years. The Indian government is promoting electric mobility through its Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles Phase II (FAME-II) program. Its ambitious target is to generate 175 GW of renewable energy by 2022. In addition, by 2030, the government wants at least 15% of the nation's cars to be electric.
Europe is expected to grow at a CAGR of 2.36% during the forecast period. The use of solar photovoltaics is predicted to have a substantial impact on the production of renewable energy in Germany (PV). If the government provides incentives and adopts new technology to boost productivity, the solar photovoltaic business in the country will grow rapidly over the next few years. The UK's steel sector has declined over the past few years. This is mainly due to increased imports from China, where steel production is more economical despite the country's high electricity costs.
Additionally, Brexit significantly impacted the steel industry when considering how it affected the export of locally manufactured steel to other parts of Europe. The local market for synthetic graphite electrodes suffered due to the domestic steel industry's decision to cut back on production. However, many of the country's steelmakers are deciding to reduce the damage that carbon dioxide emissions from the steelmaking process do to the environment. The EAF-producing steel is the best option to meet environmental problems. Currently, there are more than 500,000 solar panels placed on buildings all around the country. However, it is predicted that there will be more than 10 million solar panels installed globally by 2022. It is anticipated that synthetic graphite demand will rise during the projected period.
Key Highlights
- Based on type, the global synthetic graphite market is bifurcated into graphite anode, graphite block (fine carbon), and other types (graphite electrode, etc.). The graphite anode segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.6% during the forecast period.
- Based on application, the global synthetic graphite market is bifurcated into metallurgy, parts and components, batteries, nuclear, and other applications. The metallurgy segment is the highest contributor to the market and is estimated to grow at a CAGR of 3.57% during the forecast period.
- Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 5.66% during the forecast period.
Market News
- In May 2022, Shanshan Technology, The Vancouver-headquartered company, announced a memorandum of understanding (MOU) with Sunrise (Guizhou) New Energy Material Co., Ltd., a lithium-ion battery anode producer based in Guizhou Province, China. Sunrise is a subsidiary of Global Internet of People, Inc., an online knowledge-sharing and enterprise service platform that trades on the Nasdaq under the symbol SDH.
- In December 2022- NOVONIX Limited, a leading battery materials and technology company, announced an update on its plans to scale its U.S. production of high-performance synthetic graphite anode materials following the recent announcement that KORE Power, Inc. (“KORE”) closed its initial USD 75 million of an anticipated total USD 150 million in funding.
Global Synthetic Graphite Market: Segmentation
By Type
- Graphite Anode
- Graphite Block (Fine Carbon)
- Other Types (Graphite Electrode, etc.)
By Applications
- Metallurgy
- Parts and Components
- Batteries
- Nuclear
- Other Applications
By Regions
- North America
- Europe
- Asia-Pacific
- LAMEA
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