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Overview
Report Coverage
Key Takeaways
- APAC held the largest market share with 52.50% in 2023. with more than 50% of the market's total volume coming from the Asia-pacific region, China was the area's largest consumer. China is the primary focus of the entire lithium-ion battery production process. China is by far the biggest and fastest-growing market for lithium-ion batteries, which is boosting demand for artificial graphite.
- The high demand for batteries and other electrical gadgets coming from European countries will fuel the graphite market. the developed automotive industries in Germany, the UK, and other nations are currently concentrating on developing electric vehicles (EVs) that are powered by lithium-ion batteries. Europe wants to lead the way in next-generation batteries as a way to demonstrate technological independence. SGL Carbon from Germany and Carbon Savoie from France have been gathered into a significant battery partnership that Brussels will launch in 2020.
- North America, Africa, and South America are anticipated to see significant market expansion due to their developing industrial economies and improved economic conditions for end-user industries like automotive, metallurgy, solar, electronics, and others.
By Product Type - Segment Analysis
Graphite anodes dominated the artificial graphite market in 2023. since the invention of lithium-ion batteries, graphite has dominated anode materials due to its unmatched combination of low cost, abundance, high energy density, high power density, and extremely long cycle life. graphite is an ideal anode. recent studies show that graphite's lithium storage capacity can be further enhanced, highlighting the material's significant potential for use in advanced libs for electric vehicles and grid-scale energy storage facilities. according to the most recent data from the China association of automobile manufacturers, China’s Nev output climbed by 167.40% from January to November 2021 to 3.02 million units, while total sales increased by 166.80% compared to the first 11 months of 2020 to 2.99 million units (CAAM).
By Type - Segment Analysis
Synthetic graphite dominated the artificial graphite market in 2023. high-purity carbon makes up synthetic graphite, which is prized for its resistance to corrosion and extreme temperatures. a few extremely niche sectors heavily rely on synthetic graphite. due to its use in lucrative industries with increasing demand, synthetic graphite is attractive to investors. but before exploring the area, it's critical to comprehend the subtleties of synthetic graphite and some common misconceptions about it. because synthetic graphite has a purer carbon composition and exhibits more predictable behavior, it has found applications in solar energy storage and arc furnaces. given that the process requires a large amount of energy, synthetic graphite can be significantly more expensive to make than natural graphite. the price can be double or triple what raw graphite is typically sold for.
By Form - Segment Analysis
Secondary synthetic graphite dominated the artificial graphite market in 2023. electrodes used in heavy industry and manufacturing result in the production of secondary synthetic graphite as a by-product. secondary synthetic graphite, which is frequently produced as a powder, is another byproduct of the production of synthetic graphite. it is regarded as a low-cost version of graphite, and in some applications, such as brake linings and lubricants, it can compete with natural graphite.
By Application - Segment Analysis
Electrodes and electrolytic processes dominated the artificial graphite market in 2023. because graphite is such a good conductor, graphite electrodes are typically used in electrolysis. because of the way that its atoms are organized, graphite has a lot of free-floating electrons between its various layers (graphite bonds are formed of only three out of the four electron shells of the carbon atom, leaving the fourth electron to move freely). the electrolysis process can go without interruption because of these electrons' strong conductivity. graphite is also inexpensive, stable at high temperatures, and durable. graphite electrodes are widely used in electrolysis due to all of these factors. since many electrons are not linked in graphite due to their atomic structure, they can move freely between its layers. the abundance of free electrons (also known as electron delocalization) in graphite is what gives it exceptional conductivity. in addition to being a strong conductor, graphite is also inexpensive, durable, and widely available, which are all further reasons why it is frequently employed as an electrode.
By End User- Segment Analysis
Automotive dominated the artificial graphite market in 2023. one kilogram of graphite is required to produce one kilowatt-hour (kwh) of battery energy, making it the most significant component of the battery cell by weight. graphite makes up the great majority of the anode (95%) of a typical Li-ion battery installed in a battery electric vehicle (BEV). A memorandum of understanding [MoU] for the provision of synthetic graphite and silicon oxide to be utilized in specific stages of Britishvolt's battery production processes was signed in 2022 by Britishvolt, a battery manufacturer, and BTR, a company based in China.
By Geography - Segment Analysis
APAC artificial graphite market generated a revenue of $2 Billion in 2023 and is projected to reach a revenue of $5 Billion by 2030 growing at a CAGR of 13.88% during 2024-2030. China produces the majority of the artificial graphite that is produced in the Asia Pacific. For the development of their infrastructure and industrial expansion, countries like China are receiving significant investments. additionally, it is anticipated that during the forecast period, the growth of the industrial sector, particularly in this area, will fuel the market for artificial graphite. Chinese battery anode manufacturers revealed intentions to invest more than $3.9 billion in artificial graphite projects in 2022 in May as they seek to streamline their supply chains and cut prices. among the announcements is a new facility in Sichuan Province, Southwest China, whose operations can be fueled by renewable energy, assisting in lowering the carbon intensity of artificial graphite, which makes up a significant component of a battery's carbon footprint.
Drivers – Artificial Graphite Market
- Growing application in the automotive industry is a significant aspect
As the anode content usage of lithium-ion batteries rises in tandem with the adoption of electric vehicles and lithium-ion battery applications, demand has been expanding in recent years. In the auto industry, artificial graphite is a solution for producing lithium-ion batteries, which are used to power newer electric cars and boost energy density while shortening charging times. Additionally, it is utilized to create thermally conductive polymers, which are increasingly employed to build automotive parts instead of metal. China is also the world's largest producer of batteries, with the energy storage system and automotive industries experiencing the highest growth rates for lithium-ion battery production in the future years. Chinese anode suppliers have the biggest installed capacities internationally, and China is the main hub of the lithium-ion battery value chain.
- Market growth is driven by the metallurgy industry
In metallurgical applications, graphite is utilized in a variety of forms, including electrodes, refractories, bricks, monolithic crucibles, etc. artificial graphite is used as an anode in the electric arc furnace (eaf) process to produce steel, ferroalloys, and aluminum. in metallurgical processes, such as melting scrap iron in an electric furnace, polishing ceramics, producing compounds like calcium carbide, and others that call for high-temperature and clean energy sources, artificial graphite electrodes are used as a source of energy. the use of artificial graphite in metallurgical applications is anticipated to be driven by the increasing global production of crude steel and aluminum. however, it is anticipated that the market demand would be unpredictable due to erratic trends in the production of these metals. accordingly, based on the aforementioned factors, it is anticipated that as the production of important metals and alloys like steel and aluminum rises, artificial graphite will as well, drive the market.
Challenges – Artificial Graphite Market
The manufacture of artificial graphite comes with health risks that could restrict the market growth.
Calcined petroleum coke and coal tar pitch are the main ingredients used to make artificial graphite. these raw ingredients, though, are harmful to people's health. petroleum coke and coal tar pitch can irritate the eyes as well as cause a rash, inflammation, and burning on the skin in the event of contact. it can irritate the lungs, nose, and throat when inhaled. long-term exposure to these basic materials can also result in moderate symptoms like weariness, headache, and dizziness as well as severe ones like fainting and coma. additionally, occupational exposure to coal tar pitches raises the risk of developing skin cancer in addition to other cancers, such as lung, kidney, bladder, and, in some cases, digestive system cancer. therefore, the health risks related to using these raw materials to make artificial graphite may restrain market expansion.
Market Landscape
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the artificial graphite market. in 2023, the artificial graphite market share has been consolidated by the top seven players accounting for 65% of the share. major players in the artificial graphite market are SGL Carbon, Tokai Carbon, Elkem (Vianode), Imerys, Showa Denko, Toyo Tanso, Nippon Carbon Co Ltd, and Others.
Developments:
Ø In January 2021, Showa Denko announced the merger of between its consolidated branches, Showa Denko Carbon Holding GmbH (SDCH), and Showa Denko Europe GmbH (SDE). By combining the business management and business support functions of the two subsidiaries into one, this merger is expected to further expand the company’s business operation in Europe.
Ø In January 2021, Imerys Graphite & Carbon Ltd. launched its two new primary synthetic graphite namely KS6L and SFG6L. The main objective of the product development was to increase the company’s product portfolio.