The Global Synthetic Graphite market is forecast to grow at a CAGR of 7.9%, reaching USD 5.4 billion in 2031 from USD 3.7 billion in 2026.
The demand for synthetic graphite is driven by its usage in electrodes. The rise in the usage of electric arc furnaces (EAFs) due to the growing application of steel in various end-user industries is propelling the synthetic graphite market. The refractory industry is one of the largest users owing to the product’s extreme resistance to heat or higher temperatures.
Further, increasing investments in electric vehicle batteries, supported by various government schemes, and rising consumer demand provide growth for synthetic graphite. The growing use of electronic devices, digitalization, and an increasing number of internet users worldwide is also boosting this market.
According to the WITS (World Integrated Trade Solution), in 2023, the top importers of artificial graphite are the European Union with 155,175,000 Kg, Malaysia with 553,538,000 Kg, the United States with 94,290,000 Kg, followed by Poland with 66,293,300 Kg, and Hungary with 39,246,800 Kg.
The rise in the adoption of electric vehicles
Transport is a fundamental requirement of modern life. The use of the traditional combustion engine is becoming outdated. The rise of electric vehicles is due to their several benefits, such as EVs having very low maintenance costs because they don’t have as many moving parts as an internal combustion vehicle. Driving an electric vehicle reduces carbon footprint. Registration fees and road tax on purchasing EVs are lesser than petrol or diesel vehicles.
According to the IEA (International Energy Agency), the sales of EVs have been increasing. In China, 6 million EV cars were sold in 2022, which rose to 10.1 million in 2024. In Europe, the sales reached 3.4 million in 2024 from 2.7 million in 2022. The sales of EVs in the United States have been 1.7 million in 2024.
The metallurgy segment is expected to witness substantial growth in the application segment.
Synthetic graphite has been used extensively in the metallurgy industry. Global industrialization and building infrastructure have led to growth in metal demands, including steel and aluminum. For instance, as per the Ministry of Steel in India, in 2023-24, the production of crude steel and finished steel was 144.299 MT and 139.153 MT, respectively. Additionally, synthetic graphite serves a significant purpose in producing steel by being used as electrodes in EAFs.
Moreover, synthetic graphite enables sustainability worldwide by facilitating highly energy-efficient metallurgical processes. High thermal and electrical conductivity means low energy input and lower emissions of greenhouse gases. For instance, the IEA projected that global carbon dioxide (CO2) emissions from energy use and industrial activity in 2020 were almost 34.03 gigatons of CO2, bearing the pollution generated within and beyond the country’s territory. This rose in the following years, but as of 2022, the total touched only 36.8 Gt CO2 and set up a new emissions index, which stands at 8.1%. In this regard, the European Commission has further proposed measures to align the climate change and energy, transport, and taxation policies of the EU to lower net greenhouse gas emissions by at least 55% by 2030 compared to the level of 1990.
Additionally, continuous improvements in metallurgical technologies culminate in the development of newer, more efficient, high-performance processes. Synthetic graphite is well-suited to the new technologies available and finds usage in high-temperature applications, where resistance to thermal shock and chemical stability are highly prized.
Government policies related to sustainable development and energy efficiency also lead to the indirect growth of synthetic graphite. President Biden's Executive Order 14057 on catalyzing American clean energy industries and jobs through Federal sustainability, along with the accompanying Federal Sustainability Plan (collectively referred to as "The Federal Sustainability Plan"), sets out a range of ambitious goals to deliver an emissions reduction pathway consistent with President Biden's goal of reducing U.S. greenhouse gas emissions by 50-52% from 2005 levels by 2030 and limiting global warming to 1.5 degrees. Additionally, regulations that favor electric vehicles and renewable energy sources boost demand for lithium-ion batteries, which significantly use synthetic graphite as the anode material.
Thus, increased demand for metals, focus on energy efficiency and sustainability, and advancements in metallurgical technologies, with the right kind of support from the government, fuels the synthetic graphite market expansion.
Asia Pacific to hold significant shares of the global synthetic graphite market.
The USA holds the largest market share in the North American region owing to several factors highlighting the growth and its increasing importance across various industries. One of the major growth drivers is the use of lithium-ion batteries to power EVs and energy storage systems. Electric mobility has picked up momentum over time, and the increase in the production of lithium-ion batteries is quite high. According to the U.S. Environmental Protection Agency’s Automotive Trends Report, the electric vehicle sales in the first quarter of 2021 were 1,25,000, which increased to 1,85,000 in the fourth quarter of 2021. Similarly, in the first quarter of 2023, the electric vehicle sales in the United States were 3,00,000, which increased to 3,75,000 in the fourth quarter of 2023.
The trend is further supported by technological advances in batteries, where higher-performance materials like synthetic graphite are required for the anode. Additionally, the steel industry's growth significantly generates the demand for synthetic graphite. It is used abundantly in any steel manufacturing process as an additive that improves the quality and performance of the steel products. Domestic steel production has also witnessed a renaissance with a thrust from the U.S. government to adopt sustainable manufacturing methods since this is majorly produced using EAF methods that are synthesized using synthetic graphite electrodes.
In May 2023, Amotion Technologies (Amotion) announced its first large-scale expansion of manufacturing capacity for the production of its premium synthetic graphite anode materials in Decatur County, Southwest Georgia. Amotion chose this location for its 1,500,000-square-foot facility based on its proximity to existing and planned low- and carbon-free energy sources. This would produce 40,000 metric tonnes of synthetic graphite anode material for lithium-ion batteries per annum.
March 2022, ACP Technologies LLC, a developer of high-performance synthetic graphite for batteries in the United States, signed a deal with Navetas Systems, a pioneer in integrated energy storage systems and a Department of Defence (DoD) contractor. Under this agreement, the graphite anode materials shall be supplied by ACPT based in the United States.