Global Graphite Market Grows Steadily at a CAGR of 6.05%

Introduction

The global graphite market is experiencing robust growth, largely fueled by its essential role in the steel and foundry industries. Graphite electrodes are critical for electric arc furnace steelmaking and are valued for their superior conductivity and durability. Its exceptional thermal resistance and lubricating qualities also make graphite vital in high-temperature industrial uses, including refractories and brake linings.

Moreover, increasing government initiatives to secure critical mineral resources have elevated graphite’s strategic importance, driving greater investment in the production of both natural and synthetic variants. The electronics industry further contributes to market expansion, with graphite widely used in thermal management systems such as heat sinks and conductive elements. Together, these factors are propelling graphite’s diverse applications and sustained market growth.

Market Dynamics

Expanding EV and renewable energy markets drive the global market

The rapid expansion of the electric vehicle (EV) and renewable energy sectors is significantly fueling growth in the global graphite market. With global efforts intensifying toward sustainable transportation and clean energy, the need for lithium-ion batteries—where graphite serves as the primary anode material—has risen sharply.

• According to the International Energy Agency (IEA), demand for EV batteries exceeded 950 GWh in 2024, marking a 25% increase from 2023. That year, the combined battery demand from EVs and energy storage systems reached 1 TWh, matching the global annual consumption level from a decade earlier.

Each EV battery typically contains between 50 and 100 kilograms of graphite, underscoring the sector’s substantial impact on graphite usage. This growing demand not only benefits EV production but also drives the adoption of renewable energy storage solutions, further propelling the global graphite market.

Strategic partnerships and investments to localize graphite supply chains create tremendous opportunities

Strategic alliances and targeted investments focused on localizing graphite supply chains are creating substantial growth opportunities in the global graphite market. Driven by the fostering demand for electric vehicles (EVs) and energy storage systems, many countries are emphasizing domestic production to reduce dependence on imports—especially from China.

• For example, in January 2025, General Motors signed a multimillion-dollar agreement with Norway-based Vianode to procure synthetic anode-grade graphite, with shipments beginning in 2027. The partnership includes establishing production facilities in North America, effectively bypassing Asian suppliers and significantly cutting the carbon emissions associated with battery materials. This collaboration not only bolsters regional supply chain resilience for EV batteries but also lessens reliance on Chinese sources.

Such initiatives can enhance supply chain security, stimulate local industry growth, and unlock access to government incentives. As global battery manufacturing continues to expand, these efforts will be essential in achieving both environmental sustainability and strategic geopolitical goals.

Regional Analysis

The Asia Pacific region dominates the global graphite market, driven by strong industrial demand and a well-established battery manufacturing ecosystem. China leads both natural and synthetic graphite production, supplying over 60% of the world’s graphite and serving as a hub for lithium-ion battery anode materials. Emerging economies like India are investing in domestic mining projects, such as the Arunachal Pradesh graphite deposits, to reduce import reliance.

South Korea and Japan are accelerating R&D in solid-state batteries, further boosting high-purity graphite demand. Moreover, Southeast Asian countries like Vietnam and Sri Lanka are attracting foreign investment in graphite mining due to their rich reserves and favorable policies. The region’s rapid growth in electric vehicles, energy storage, and steel production continues to fuel graphite consumption, positioning Asia Pacific as a critical player in shaping future graphite supply and demand dynamics.

Key Highlights

• The global graphite market size was valued at USD 11.12 billion in 2024 and is estimated to grow from USD 11.79 billion in 2025 to reach USD 18.87 billion by 2033, growing at a CAGR of 6.05% during the forecast period (2025–2033).
• By type, the global graphite market is divided into natural graphite and synthetic graphite. The synthetic graphite segment dominated the market.
• By application, it includes refractories, battery production, electrodes, foundries, lubricants, friction products, conductive materials, nuclear reactors, and other industrial applications.
• By end-use industry, the market is categorized into metallurgy, automotive, electronics, energy storage, construction, and aerospace.
• Asia-Pacific is the highest shareholder in the global market.

Competitive Players

1. Syrah Resources Limited
2. SGL Carbon SE
3. Tokai Carbon Co., Ltd.
4. Showa Denko K.K.
5. Imerys Graphite & Carbon
6. GrafTech International Ltd.
7. Northern Graphite Corporation
8. Graphite India Limited
9. Mason Graphite Inc.

Recent Developments

• In June 2025- Graphite One Inc. expanded its partnership with Lucid Motors, a leading electric vehicle manufacturer, to establish a fully domestic supply chain for advanced graphite materials. This collaboration includes a new non-binding agreement to supply Lucid and its battery cell suppliers with natural graphite, complementing a previous agreement covering synthetic anode active materials. The initiative aims to strengthen U.S. competitiveness and reduce reliance on foreign sources for critical battery materials.

Segmentation

1. By Type
   1. Natural Graphite
   2. Synthetic Graphite
2. By Application
   1. Refractories
   2. Battery Production
   3. Electrodes
   4. Foundries
   5. Lubricants
   6. Friction Products
   7. Conductive Materials
   8. Nuclear Reactors
   9. Other Industrial Applications
3. By End-Use Industry
   1. Metallurgy
   2. Automotive
   3. Electronics
   4. Energy Storage
   5. Construction
   6. Aerospace
   7. Others
4. By Regions
   1. North America
   2. Europe
   3. Asia-Pacific
   4. Latin America
   5. The Middle East and Africa