Global Hard Carbon Market 2022-2028

Global Hard Carbon Market 2022-2028

Global Hard Carbon Market Size, Share & Trends Analysis Report, By Battery Type (Lithium-Ion Batteries and Sodium-Ion Batteries), and by Application (Power Battery, Digital Battery, and Energy Storage Battery) Forecast Period (2022-2028)

Battery Industry Overview

Batteries are vital in the global energy transition to maintain a balance between supply and demand within the power industry. The ever-increasing demand for battery technology poses concerns related to the availability of raw materials and environmental impacts. As of now, lithium-ion batteries (LIBs) dominate the battery industry, which uses raw materials such as cobalt, lithium (Li), and natural graphite. According to the United States Geological Survey, global mine production of graphite was 954,000 tons in 2021, witnessing a 14% fall compared to the previous year and global consumption of graphite reached 2.7 million tons in 2021. Rapidly growing demand can disrupt the supply chain due to the scarcity of raw materials. The emergence of new battery materials such as sodium ion batteries (SIBs) can avoid such critical raw material shortages. Sodium is more abundant than the metals used in lithium-ion batteries, which makes it less expensive and more environmentally friendly at the source.

Hard Carbon Industry Overview

The global hard carbon market size was $430 million in 2021 which is projected to reach $1.6 billion by 2021, growing at a CAGR of 20.9% during the forecast period. The market is still in its initial phase due to the dominance of the fully commercialized anode material, graphite. Around 85% of commercial LIBs have graphite (including artificial and natural graphite) as an anode active material. Hence, hard carbon production capacities are limited due to a lack of demand. However, the market for hard carbon is expected to accelerate with the successful commercialization of sodium-ion batteries, as the most promising anode material for commercial SIBs that can be applied in large quantities is expected to be hard carbon. SIBs are considered one of the most promising post-lithium batteries. Due to the shared electrochemical fundamentals with LIBs, SIBs can reach the market by leveraging R&D experience and the existing production lines of LIBs. The common anode material in LIBs, graphite, cannot be used in SIBs due to the inefficient intercalation of sodium ions. Therefore, a variety of material types have been examined as potential anodes for SIBs, such as metal-based oxides and sulfides, alloys (phosphorus or tin), and hard carbon. Among them, hard carbon is considered the most promising candidate for first-generation SIBs, considering its exceptional specific energy and sufficient capacity at low redox potential.

Segmental Outlook

Hard carbon is primarily commercialized for lithium-ion batteries. The hard carbon market for lithium-ion batteries was $480.50 million in 2021 and is projected to reach $1.4 billion by 2028. Whereas the hard carbon market for the sodium-ion battery is growing at the highest CAGR of 37.5% during the forecast period. The growth is attributed to significant R&D in sodium battery technology and demand for sustainable battery solutions to reduce carbon footprints globally. The hard carbon market size for the sodium-ion battery was $21.5 billion in 2021, which is anticipated to reach $216.95 million by 2028.

Hard carbon-based lithium-ion batteries are fully commercialized and are suitable for a wide range of applications, including consumer electronics such as smartphones and PCs, industrial robots, production equipment, and automobiles. Sodium-ion batteries, on the other hand, are a promising technology for electric vehicles, the energy grid, and other applications. Power battery applications of hard carbon include electric vehicle (EV) batteries and rechargeable batteries used in machinery and marine equipment, industrial automation systems, agricultural machinery, defense and aviation, electronics, oil and gas, and civil infrastructure. The hard carbon market for power battery applications was worth $107.50 million in 2021 and is estimated to reach $455.75 million by 2028, growing at the highest CAGR of 23.0% during the forecast period. This growth is attributed to significant demand from all-electric vehicles, plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). Digital batteries include consumer electronics such as smartphones and laptops, digital devices, and others. The hard carbon market for the digital battery is growing at a CAGR of 20.0% during the forecast period. The market size was $283.80 million in 2021 and is projected to reach $1.0 billion by 2028. The hard carbon market for energy storage battery applications was valued at $38.70 million in 2021 and is estimated to reach $150.24 million in 2028, growing at a considerable CAGR of 21.4% during the forecast period. The growth is driven by significant demand from off-grid and on-grid energy storage systems in the renewable energy industry.

Regional Outlook

The hard carbon market in Asia-Pacific held the highest market share of 68.0% in 2021. The market size in Asia-Pacific was $292.61 million in 2021 and is projected to reach $1.2 billion in 2028, growing at the highest CAGR of 21.7% during the forecast period. China and Japan dominated the global hard carbon industry with a 50.4% market share, followed by Europe with a 19.2% market share in 2021. The three most active countries in the hard carbon industry in terms of patent numbers include China (CN, 112 patents), South Korea (KR, 42 patents), and Japan (JP, 14 patents). North American and European markets are growing considerably, which can be attributed to more R&D investment and more efficient commercialization of innovations during the forecast period.

Market Players Outlook

The key players operating in the global hard carbon market include Kuraray Co., Ltd, Stora Enso Oyj, Xiamen Lith Machine Limited, Aekyung Industrial Co., Ltd., JFE Chemical Corporation, Wuhan Bixidi Battery Material Co. Ltd, HayCarba Group, and others. Other players engaged in the market include Sumitomo Bakelite, Indienergy (Indigenous Energy Storage Technologies Pvt. Ltd.), Better New Material Group Co., Ltd., and others. These players are actively participating in the market through their R&D investments and patent filings. For instance, Stora Enso invested around $12 million in the pilot facility for producing biobased carbon materials from lignin, began operations in July 2021. Pilot production of Lignode by Stora Enso, a wood-based carbon for batteries, is being ramped up post-investment. Its applications include electric vehicles and consumer electronics as well as large-scale energy storage systems.