The global spherical graphite market is projected to grow at a CAGR of 27.58% during the forecast period to reach US$5.602 billion by 2026, from US$1.018 billion in 2019. 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 and 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.
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 for 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 positively impact the growth of the market. With the speedy improvements and innovations in the transportation sector, the spherical graphite market is assumed to give wide possibilities to revolutionize the emerging lithium-ion industries in which spherical graphite is used. Moreover, the huge 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 industries 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 sources of energy. The sustainability issue is 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 a lot of development to complete the energy requirements efficiently. These factors add to the increasing growth of the market of spherical graphite globally.
Despite all this, the increasing price of spherical graphite and rigorous government regulations in regards to 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 for the growth of the market.
The market for the global spherical graphite is dominated by the region of Asia Pacific. The growth is majorly due to the increase of 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 to drive the majority 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 observing growth as many lithium-ion battery manufacturers are actively exploring alternative supply options. Barriers to entry for spherical graphite production are high, especially in the rest of the world, due to China's low energy and labor costs and due to its 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 methods of purification. 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.
The primary impact of COVID-19 on the graphite supply chain was critical, keeping most graphite operations within China closed until mid-March, adding to a long period of closure. This reduced market activity and any operations which tried to deliver orders faced important logistical disruption. Prices began to fall concerning the virus in March, due to suffocated downstream demand caused by subdued activity in industrial markets and a reduction in anode orders.
Nonetheless, the drop in pricing was comparatively limited, as demand from domestic Chinese spherical graphite producers remained consistent during the virus period. China's flexibility in the pandemic arises from the fact that flake and synthetic production zines are located far away from the locations with the highest cases in the country. Even with regards to the intermediate-stage production of anode material, there has been resilience to the impact of the pandemic in Korea and Japan. Also, irrespective of prevailing surplus, graphite and anode markets are supported by the regional governments of China which have resulted in plans of many major developments which indicate the country's sustained efforts of establishing China's supply base. This allowed China to get a more powerful state in the market and slow down the diversification of the supply chain.
Spherical graphite is at a growing stage and has the potential to tackle the increasing concern regarding emissions, which is expected to positively impact the growth of the market
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 for 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 positively impact the growth of the market. With the speedy improvements and innovations in the transportation sector, the spherical graphite market is assumed to give wide possibilities to revolutionize the emerging lithium-ion industries in which spherical graphite is used. Moreover, the huge 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 industries 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 sources of energy. The sustainability issue is 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 a lot of development to complete the energy requirements efficiently. These factors add to the increasing growth of the market of spherical graphite globally.
Despite all this, the increasing price of spherical graphite and rigorous government regulations in regards to 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 for the growth of the market.
The market for the global spherical graphite is dominated by the region of Asia Pacific. The growth is majorly due to the increase of 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 to drive the majority 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 observing growth as many lithium-ion battery manufacturers are actively exploring alternative supply options. Barriers to entry for spherical graphite production are high, especially in the rest of the world, due to China's low energy and labor costs and due to its 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 methods of purification. 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.
COVID-19 Insights
The primary impact of COVID-19 on the graphite supply chain was critical, keeping most graphite operations within China closed until mid-March, adding to a long period of closure. This reduced market activity and any operations which tried to deliver orders faced important logistical disruption. Prices began to fall concerning the virus in March, due to suffocated downstream demand caused by subdued activity in industrial markets and a reduction in anode orders.
Nonetheless, the drop in pricing was comparatively limited, as demand from domestic Chinese spherical graphite producers remained consistent during the virus period. China's flexibility in the pandemic arises from the fact that flake and synthetic production zines are located far away from the locations with the highest cases in the country. Even with regards to the intermediate-stage production of anode material, there has been resilience to the impact of the pandemic in Korea and Japan. Also, irrespective of prevailing surplus, graphite and anode markets are supported by the regional governments of China which have resulted in plans of many major developments which indicate the country's sustained efforts of establishing China's supply base. This allowed China to get a more powerful state in the market and slow down the diversification of the supply chain.
Key Market Segments
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
- Germany
- France
- United Kingdom
- Spain
- Others
- Middle East and Africa
- Saudi Arabia
- UAE
- Israel
- Others
- Asia Pacific
- China
- Japan
- South Korea
- India
- Thailand
- Taiwan
- Indonesia
- Others
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. GLOBAL SPHERICAL GRAPHITE MARKET, BY TYPE
6. GLOBAL SPHERICAL GRAPHITE MARKET, BY APPLICATION
7. GLOBAL SPHERICAL GRAPHITE, BY GEOGRAPHY
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
9. COMPANY PROFILES
Companies Mentioned
- Aoyu Graphite Group
- Yingkou Botian Material Technology Limited Comp
- Battery Minerals Limited
- Qingdao Yanxin Graphite Products Co., Ltd
- Jixi BTR Graphite Industrial Park
- Black Rock Mining
- Imerys Graphite & Carbon
- Syrah Resources Limi
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 120 |
| Published | January 2022 |
| Forecast Period | 2019 - 2026 |
| Estimated Market Value ( USD | $ 1.02 Billion |
| Forecasted Market Value ( USD | $ 5.6 Billion |
| Compound Annual Growth Rate | 27.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 8 |
