April 18, 2024

Flake Graphite Market Estimated to Witness High Growth Owing to Increasing Demand in Lithium-ion Batteries

Flake graphite is natural graphite that has been crushed and screened to remove the fines and separate the flakes. It has high purity and is extensively used in refractories, steelmaking, pencils, lubricants and a range of other industrial applications owing to its excellent thermal resistance and electrical conductivity. Moreover, flake graphite is a key anode material for lithium-ion batteries and growing adoption of electric vehicles in recent years has surged its demand. The Global Flake Graphite Market is estimated to be valued at US$ 16.05 Bn in 2024 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030.

Key Takeaways
Key players operating in the Flake Graphite market are AMG, Asbury Carbons, Eagle Graphite, EPM Group, Grafitbergbau Kaisersberg GmbH, Graphite India Limited (GIL), Imerys, and Nacional de Grafite. These players are focusing on capacity expansion and adoption of clean production technologies to cater to the growing demand from various end-use industries.

The key opportunities in the market include increasing usage of flake graphite in lithium-ion batteries for applications in electric vehicles and energy storage systems. According to forecasts, electric vehicles sales are expected to grow over 25% annually till 2030 which will drive the demand for battery-grade flake graphite.

Technological advancements are also being witnessed in developing new production methods for spherical graphite which has better conductivity than flake graphite and can increase battery performance. Companies are investing in research & development to commercialize new methods like thermal diffusion bonding, coating, and vapor deposition that offer advantages over existing production routes.

Market drivers
The major market driver is the increasing demand for lithium-ion batteries from electric vehicles and energy storage systems. Flake graphite accounts for over 50% of the total anode material used in lithium-ion batteries. As per estimates, over 850 GWh of lithium-ion battery demand will emerge from electric vehicles alone by 2030 which will require massive amounts of battery-grade natural graphite. Strong government support for clean mobility solutions in key markets along with falling battery pack prices are stimulating electric vehicles sales growth. This will continue boosting consumption of flake graphite in the coming years.

Current Challenges in Flake Graphite Market
The flake graphite market is facing many challenges currently. One of the major challenge is environmental and safety regulations related to mining activities. Graphite mining involves removal of large amount of overburden which poses risk to the environment. Rising awareness about climate change and sustainability has led governments to impose stricter environmental norms for mining. This increases compliance cost for companies.

Another challenge is volatility in graphite prices. Being a commodity, graphite prices fluctuate depending on demand-supply dynamics. Any disruption in major graphite producing regions can impact global supply and cause price swings. This introduces uncertainty for participants in the value chain.

SWOT Analysis
Strength: High functionality and thermal conductivity of flake graphite makes it suitable for diverse applications. Availability of high-grade deposits in key producing nations.
Weakness: Environmental regulations add to compliance cost. Dependency on few major producing countries increases supply risk.
Opportunity: Growing demand from lithium-ion batteries due to rising electric vehicles and energy storage offers significant upside. New applications in advanced materials can open new markets.
Threats: Substitution threat from synthetic and recycled graphite. Country specific trade policies and geo-political tensions pose supply disruption risks.

Europe accounts for the largest share of the global flake graphite market in terms of value currently. Countries like Germany, Italy and UK have strong presence of end-use industries fuelling demand. Asia Pacific region is poised to emerge as the fastest growing market during the forecast period. Rising electric mobility and energy storage infrastructure build-out in China and India will be the major growth drivers.

North America is another major geographical region accounting for significant market share currently. Presence of lithium-ion battery gigafactories in the US and Canada supports regional demand growth. Growing battery recycling industry in the region also offers opportunity for recycled flake graphite usage.

*Note:

1.Source: Coherent Market Insights, Public sources, Desk research

2.We have leveraged AI tools to mine information and compile it