Global Spherical Graphite Market - Forecasts from 2024 to 2029

Global Spherical Graphite Market - Forecasts from 2024 to 2029

The global spherical graphite market is evaluated at US$1,608.16 million for the year 2022 and is projected to grow at a CAGR of 33.40% to reach a market size of US$12,809.33 million by the year 2029.

Spherical graphite is also known as battery-grade graphite and is manufactured from the concentrates of flake graphite that are produced by graphite mines and is consumed as an anode in lithium-ion batteries. The concentrates of flake graphite are prepared into ultra-high-purity and microscopic spheres, which are used as a battery anode material. This minimizes the surface area to enable more graphite into a smaller volume, thus producing a lighter, smaller, and more effective anode product for the battery. It also improves the rate at which the cell can be charged.

MARKET TRENDS:

The major factor for the growth of the global spherical market is the increasing demand for lithium-ion batteries by several end-users such as transportation, energy, and more. In addition to this, the growing demand for portable devices and electric vehicles also acts as a factor in the increasing growth of the global spherical graphite market. Spherical graphite is at a growing stage and has the potential to approach the growing concern regarding emissions, and this factor is also expected to impact the market’s growth emphatically. With the speedy improvements and innovations in the transportation sector, the spherical graphite market is assumed to give immense possibilities to revolutionize the emerging lithium-ion industries in which spherical graphite is used.

Moreover, the massive demand for smart devices like laptops, smartphones, and many other consumer electronic goods coupled with the high adoption of graphite in refractories is anticipated to allow a diversity of growth openings for the spherical graphite market. Moreover, the burgeoning demand for superior-quality graphite from the automotive industry is one of the factors that will add to the growth of the graphite market in the coming years during the forecast period. Reasons like instability in climate and the growing concern over pollution linked with the depleting reserves of fossil fuel have hastened the adoption of alternative energy sources.

Additionally, the sustainability issue to satisfy the global energy demand has led to a shift from using fuel reserves to renewable energy sources like batteries. Over many years, the battery industry has gone through much development to complete the energy requirements efficiently. These factors add to the increasing growth of the spherical graphite market globally.

MARKET DRIVERS:

Growing demand for electric vehicles is anticipated to drive the market’s growth.

Spherical graphite market development is expected to be significantly fueled by the increasing demand for electric vehicles (EVs). The main energy storage component of electric vehicles (EVs), lithium-ion batteries, depends heavily on spherical graphite. Global efforts to mitigate climate change and cut greenhouse gas emissions have led to a drive for the electrification of transportation, with electric vehicles (EVs) emerging as a critical component of this electrification.

Government incentives, laws requiring fewer emissions, advances in battery technology, and growing consumer awareness of environmental problems are some of the causes driving the shift to electric vehicles (EVs). Because of this, major automakers are making significant investments in the research and manufacturing of electric vehicles (EVs), and the global automotive industry is rapidly shifting toward electric mobility which in turn fuels the spherical graphite market.
Increasing demand for smart devices might impact the global spherical graphite market growth.

The growth of the worldwide spherical graphite market is expected to be significantly impacted by the growing demand for smart gadgets. Lithium-ion batteries play a major role in powering smart devices, including tablets, smartphones, smartwatches, and other Internet of Things gadgets. These batteries' anodes include spherical graphite, which is essential for maintaining stability and conductivity throughout charge and discharge cycles.

The demand for lithium-ion batteries is predicted to rise along with the global use of smart gadgets, which is being driven by factors such as changing consumer tastes, increased disposable incomes, and technical breakthroughs. As a result, spherical graphite is anticipated to continue to be in high demand as long as these batteries are produced.

RESTRAINTS:

Despite all the drivers, the increasing price of spherical graphite and rigorous government regulations regarding the mining process can act as chief restraints towards the market growth of spherical graphite. Adding to this, the insufficient production potential can also be a hurdle to the market's growth.

Asia Pacific is anticipated to be the major regional market.

The global spherical graphite market is anticipated to be dominated by the Asia Pacific region. The growth is majorly due to the increase in the consumer electronics sector in the region, notably owing to the rapid escalation of smartphones and surging demand for electric vehicles that raised the demand for lithium-ion batteries. China is the major producer and consumer of anode material, lithium-ion batteries, and battery components. The country is responsible for driving most of the lithium-ion battery supply chain. Haida Group, a major Chinese graphite miner, is one of the world’s largest producers of spherical graphite.

The spherical graphite market in Europe and North America is also predicted to observe growth as many lithium-ion battery manufacturers are actively exploring alternative supply options. Barriers to entry for spherical graphite production are high due to China’s low energy and labor costs and less stringent environmental restrictions. Although environmental expenses are rising in China, the conventional method of flake graphite processing to manufacture spherical graphite remains.

Producers outside China who are looking to distance themselves from this process have been observed to produce their exclusive purification methods. It is essential to the economic and national security of the United States to scale up to market production at costs that are competitive with China. Though China remains the dominant producer of coated spherical graphite, there is an increasing interest in alternative sources as electrical vehicle production gains friction in the U.S. and Canada.

Key Developments:

In January 2023, the U.S. subsidiary of Graphex Group Limited and Northern Graphite Corporation announced that Graphex would take part in Northern's previously announced selection process for a site suitable for the construction of a large-scale graphite processing facility in the Baie-Comeau region.
In June 2021, together with its technological partner in the US, South Star Battery Metals Corp. announced that it has successfully produced uncoated and coated spherical purified graphite (SPG) suitable for use as anode active material for lithium-ion batteries (LiB).

Segmentation:

By Type
Natural
Synthetic
By Application
Consumer Electronics
Transportation Batteries
Energy Storage
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
United Kingdom
Germany
France
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Israel
Others
Asia Pacific
China
Japan
India
South Korea
Taiwan
Thailand
Indonesia
Others