Spherical Graphite Market Size, Share & Trends Growth [2030]

Report Description

Spherical Graphite Market Outlook

The global spherical graphite market was estimated at USD 532.4 Million in 2021 and is anticipated to reach USD 2,393.3 Million by 2030, expanding at a CAGR of 22.4% during the forecast period 2022-2030.

Spherical graphite, also referred to as battery-grade graphite, is used in the anode component in lithium-ion batteries. 

Graphite flake is used to create spherical graphite. Flake graphite concentration is processed into microscopic (15 to 5 micron) and ultra-pure (>99.95% C), spheres that are used as a battery anode material.

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This results in a compact, light, & efficient battery anode by lowering the surface area and packing a lot of graphite into a small region. It significantly accelerates the charging of the cell. In battery applications, spherical graphite offer a number of benefits over flake graphite. Spherules with a low specific surface area (BET) experience few capacity losses.

Spherical graphite has high crystallinity, low cost, low charge, discharge potential, and flatness. It is an essential component of lithium-ion battery anode material and a cathode material.

Macro-economic Factors

International Trade

International trade is the purchase and sale of goods & services by companies in different countries. Consumer goods, raw materials, food, and machinery are bought and sold in the international marketplace. Graphite is mined and exported by producing countries. For example, according to United States Geological Survey (USGS), China produces approximately 67% of global output of natural graphite and is the dominant exporter of graphite.

Moreover, in 2018, China exported around 16% of spherical graphite. Furthermore, China has the ability to affect the market price of graphite and, in turn, the prices of spherical graphite, as it is one of the large graphite-producing countries.

Availability of Raw Material

Availability of raw materials for manufacturing products is an important part of the manufacturing process. Manufacturing companies ensure the availability of raw materials inventory to secure the good flow of the production process with good quality, proper time, and effective cost.

Graphite is either naturally found and mined or produced synthetically by the high temperature processing of amorphous carbon materials. Spherical graphite is produced through graphite, which is used to manufacture anodes that are used in the production of lithium-ion batteries.

Investments

An investment involves putting a capital to use today in order to increase its value over time. An investment refers to any medium or mechanism used for generating future income, including bonds, stocks, real estate property, or alternative investments. Graphite is one of the non-toxic and chemically inert metal found on Earth, which makes it useful for batteries and energy storage systems. Many companies are increasing investments in the production of graphite.

For example, Renascor Resources, a company in South Australia, is proposing a project that yields up to 150,000 tons of graphite concentrate annually and is investing more than USD 100 million towards capital expenditure on the project.

Mining Industry

Profit generated by the mining sector boosts the economy of a country. The mining sector is engaged in obtaining metals, minerals, and other products needed for diverse industrial applications. The mining sector involves in the extraction of coal, oil & gas, metals, and non-metallic minerals.

Moreover, the sector is making use of modern technologies to complete the task at a fast pace and efficiently. Increasing in graphite mining is increasing, as lithium-ion batteries are becoming common across the globe. These batteries are used in everything from phones to electric vehicles (EVs). Graphite is one of the key raw materials used in these batteries. Hence, the demand for graphite is expected to rise, as demand for lithium-ion batteries grows during the forecast period.

GDP

Gross domestic product (GDP) per capita is a country’s GDP divided by midyear population. GDP tracks the health of a country’s economy, by representing the value of goods and services produced over a specific time period. Revenue generated from the mining industry and the automotive industry contributes to the country’s economy and GDP. Presently, China, India, and the US are the largest producers of graphite across the globe.

Graphite is used in pencils, lubricants, batteries, solar panels, and others. One of the major uses of graphite is in the production of battery anode. Spherical Graphite is used in lithium-ion batteries, which are used to run electric vehicles. Electric vehicles are increasingly replacing diesel/petrol run vehicles, as they produce less noise and emit less to no carbon. Thus, growing demand of spherical graphite

Spherical Graphite Market Dynamics 

Market Driver- Increase in Demand for Lithium-ion Batteries

Natural graphite typically contains flakes, which need to be converted to a spherical form before they are used as an anode material in lithium-ion battery. A lithium-ion (Li-ion) battery is part of an advanced battery technology that uses lithium ions as a key component of its electrochemistry. Li-ion batteries use several materials for its anodes and cathodes.

The combination of lithium cobalt oxide (cathode) and graphite or spherical graphite (anode) is commonly found in portable electronic devices, such as cell phones and laptops.

Globally, industries are continuously developing more powerful lithium-ion batteries to power everything from electric vehicles to grid-scale energy storage stations, where spherical graphite plays an increasingly important role. Therefore, increasing demand for lithium-ion batteries is expected to drive the demand for spherical graphite.

Market Driver- Rising usage of Energy Storage Systems

Energy storage systems refer to a set of methods and technologies that are used to store energy. The stored energy is used at a afterwards to perform a useful operation. Many renewable energy sources, such as wind, solar energy, and tides are intermittent. Types of energy storage include pumped hydro, compressed air energy storage, batteries, flywheels, and capacitors.

The use of graphite allows for temperatures in the storage media to reach 1650°C. The rounded shape of spherical graphite allows for efficient packaging of particles in an anode, which increases the energy and recharge capacity in energy storage systems. Thus, the rising usage of energy storage systems is increasing the demand for spherical graphite.

Market Restraint- High price of the Product

Spherical graphite is made using high-quality high-carbon natural flake graphite as a raw material, and the graphite surface is modified by advanced processing technology to produce graphite products with different fineness and shapes, such as oval spheres. The resulted products from upgraded flake graphite are roughly spherical type particles with more than 99.9% carbon purity.

The yield of spherical graphite production is only 30%; thus, spherical graphite is three times more expensive when compared to flake graphite. The price of synthetic graphite is fluctuating. Synthetic graphite is significant premium to natural flake graphite, as it is a man-made environmentally damaging and energy-intensive product.

Market Opportunity- Increasing Exploration of Graphite

China is a key producer of graphite, producing an estimated 79% of total world output in 2021. Most countries import graphite, spherical graphite, and lithium-ion batteries from China. According to U.S. Geological Survey, in 2021, imports of natural graphite in the US were estimated at 53,000 tons of graphite to meet its increasing demand. Many major electric vehicle manufacturing companies have signed deals with graphite providers.

For instance, Tesla signed a deal with Syrah Resources, wherein Syrah Resources is expected to supply Tesla with natural graphite active anode material from its Vidalia production facility in the US at a fixed price for four years, starting with the first commercial production at the site.

This agreement is already in effect, as many countries are not able to meet the growing demand for graphite in electric vehicles and usually import graphite from China. Therefore, increasing demand for spherical graphite is boosting the demand for graphite exploration.

Market Opportunity- New lithium-ion Battery Production Plants

China is a key player in terms of production of lithium-ion battery. Many countries apart than China are planning to open lithium-ion factories to meet the growing demand for batteries. According to venture capitalists, the demand for lithium-ion batteries in electric vehicles (EVs) is rising rapidly. The demand for lithium-ion batteries is set to reach 9,300 gigawatt-hours (GWh) by 2030, up by over 1,600% from 2020 levels. Furthermore, the US is working on increasing the production of lithium-ion batteries.

For example, Tesla and Panasonic’s Giga Nevada accounts for the majority of lithium-ion batteries with 37 GWh of annual capacity, making it the one of the largest battery manufacturing plants in the world. Furthermore, Europe is working on increasing the manufacturing plants of lithium-ion batteries for its electric vehicles.

Countries in Europe collectively make up for 68 GWh or around 10% of lithium-ion battery manufacturing. Therefore, increasing number of production plants is expected to boost the demand for spherical graphite, as it is used in the production of lithium-ion batteries.

Scope of Spherical Graphite Market Report      

The report on the global spherical graphite market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Spherical Graphite Market Segmental Outlook

On the basis of type, the global spherical graphite market is segmented into natural and synthetic. The natural segment is expected to expand at significant growth rate during the forecast period. Growing demand for portable gadgets and electric vehicles is expected to boost the growth of the natural spherical graphite segment in the coming years. Increasing demand for alternative energy sources and consumer electronics is expected to drive the natural spherical graphite segment during the forecast period. 

The synthetic spherical graphite segment held substantial market share in 2021. Increasing use of synthetic spherical graphite electrodes in battery the manufacturing industries is driving the market. Synthetic spherical graphite is highly used in the production of electric and hybrid automobiles. High global demand for such automobiles is driving the price of synthetic spherical graphite.

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On the basis of end-use, the global spherical graphite market is segmented into electric vehicles, energy storage systems, and consumer electronic devices. The electric vehicles segment is expected to hold 37.8% market share in 2021. Electric vehicles (EVs) have a significant pollution advantage over traditional fuel-powered vehicles, due to the absence of transit-related emissions.

Increasing concerns about climate changes have forced regulatory agencies to enact stringent fuel efficiency requirements. Governments provide appealing incentives and policies to stimulate the purchase of EVs. EVs offer users a variety of perks, including low-selling prices, free or low-cost registration fees, and free EV charging infrastructure at various charging points.

The energy storage systems segment is anticipated to expand at a substantial growth rate during the forecast period. Globally, people are becoming aware of the negative impact of CO₂ emissions and other greenhouse gases on the environment. This has created a significant interest in renewable energy sources. These factors are expected to propel the energy storage systems segment. Rising awareness of energy-efficient products and the availability of low-cost raw materials for battery manufacture are anticipated to boost the energy storage systems segment during the forecast period.

The consumer electronic devices segment held a significant market share in 2021 and is expected to hold 28.0% market share in 2030. Growing demand for portable gadgets and electric cars is expected to have a positive impact on the growth of the spherical graphite market. Increasing demand for alternative energy sources in consumer electronics devices is expected to be a significant factor boosting the growth of the spherical graphite market.

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Regional Outlook

Based on region, the market is separated into five regions, namely, North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. The market in Asia Pacific held a significant share of the market during the forecast period.

The market in Asia Pacific is projected to expand at substantial growth rate during the forecast period, owing to the increasing demand for electric vehicles, consumer electronics, and energy storage systems in the region. China is one of the major consumers of spherical graphite, as it is one of the largest producers of lithium-ion batteries in the region. This is attributed to large investments in research & development, government policies, and foreign direct investment inflows.

Moreover, countries such as Japan and South Korea are increasing the production of lithium-ion batteries to meet the growing demand for electric vehicles. The market in North America is projected to expand at a significant growth rate during the forecast period, owing to the increasing demand for electric vehicles. Electric vehicles are efficient and light.

Furthermore, they emit less carbon as compared to other diesel/petrol vehicles, as electric vehicles use lithium-ion batteries to run. These batteries are rechargeable. Panasonic Tesla is one of the largest manufacturers of lithium-ion batteries located in the US. Increasing production of Lithium-ion batteries is expected to increase the demand for spherical graphite in the region. 

The growth of the spherical graphite market in Europe is attributed to the rising penetration of environment-friendly vehicles and energy storage systems in the region. Governments of various countries in Europe are working towards making both passenger cars and electric commercial fleets. They are encouraging Asia Pacific-based companies to open manufacturing plants in Europe to reduce the import cost of lithium-ion batteries.

Furthermore, Europe-based countries are turning towards sustainable and environment-friendly methods to save energy. Therefore, they are focusing on the use of solar and wind power plants. Energy storage systems require lithium-ion batteries as fuel. Therefore, the demand for spherical graphite is increasing in Europe, as it is used in the production of lithium-ion batteries.

The market in the Middle East & Africa and Latin America is projected to expand at a CAGR of XX.X% and XX.X% respectively.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the Global Spherical Graphite Market
• Historical, Current, and Projected Market Sizes in terms of Value
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Spherical Graphite Market Performance