The Global Spherical Graphite market is projected to grow at a CAGR of 32.59% during the forecast period to reach US$6,310.080 million by 2027, from US$875.814 million in 2020.
Spherical graphite is also known as battery-grade graphite and is manufactured from the concentrates of flake graphite that are produced by graphite mines and is consumed as an anode in lithium-ion batteries. The concentrates of flake graphite are prepared into ultra-high-purity and microscopic spheres, which are used as a battery anode material. This minimizes the surface area to enable more graphite into a smaller volume, thus producing a lighter, smaller, and more effective anode product for the battery. It also improves the rate at which the cell can be charged.
Spherical graphite is at a growing stage and has the potential to tackle the increasing concern regarding emissions, which is expected to impact the growth of the market positively.
The major factor for the growth of the global spherical market is the increasing demand for lithium-ion batteries by several end-users such as transportation, energy, and more. In addition to this, the growing demand for portable devices and electric vehicles also acts as a factor in the increasing growth of the global spherical graphite market. Spherical graphite is at a growing stage and has the potential to approach the growing concern regarding emissions, and this factor is also expected to impact the market’s growth emphatically. With the speedy improvements and innovations in the transportation sector, the spherical graphite market is assumed to give immense possibilities to revolutionize the emerging lithium-ion industries in which spherical graphite is used. Moreover, the massive demand for smart devices like laptops, smartphones, and many other consumer electronic goods coupled with the high adoption of graphite in refractories is anticipated to allow a diversity of growth openings for the spherical graphite market. Moreover, the burgeoning demand for superior-quality graphite from the automotive industries is one of the factors that will add to the growth of the graphite market in the coming years during the forecast period. Reasons like instability in climate and the growing concern over pollution linked with the depleting reserves of fossil fuel have hastened the adoption of alternative energy sources. The sustainability issue is to satisfy the global energy demand has led to a shift from using fuel reserves to renewable energy sources like batteries. Over many years, the battery industry has gone through much development to complete the energy requirements efficiently. These factors add to the increasing growth of the market of spherical graphite globally.
Despite all this, the increasing price of spherical graphite and rigorous government regulations regarding the mining process can act as chief restraints towards the market growth of spherical graphite. Adding to this, the insufficient production potential can also be a hurdle to the market's growth.
The market for the global spherical graphite is dominated by the region of Asia Pacific. The growth is majorly due to the increase in the consumer electronics sector in the region, notably owing to the rapid escalation of smartphones and surging demand for electric vehicles that raised the demand for lithium-ion batteries. China is the major producer and consumer of anode material, lithium-ion batteries, and battery components. The country is responsible for driving most of the lithium-ion battery supply chain. Haida Group, a major Chinese graphite miner, is one of the world’s largest producers of spherical graphite.
The spherical graphite market in Europe and North America is also observing growth as many lithium-ion battery manufacturers are actively exploring alternative supply options. Barriers to entry for spherical graphite production are high, especially in the rest of the world, due to China’s low energy and labor costs and less stringent environmental restrictions. Although environmental expenses are rising in China, the conventional method of flake graphite processing to manufacture spherical graphite remains. Producers outside China who are looking to distance themselves from this process have been observed to produce their exclusive purification methods. It is essential to the economic and national security of the United States to scale up to market production at costs that are competitive with China. Though China remains the dominant producer of coated spherical graphite, there is an increasing interest in alternative sources as electrical vehicle production gains friction in the U.S. and Canada.
The primary impact of COVID-19 on the graphite supply chain was critical, keeping most graphite operations within China closed until mid-March, adding to a long period of closure. This reduced market activity and operations that tried to deliver orders faced noteworthy logistical disruption. Prices began to fall concerning the virus in March due to suffocated downstream demand caused by subdued activity in industrial markets and a reduction in anode orders.
Nonetheless, the drop in pricing was comparatively limited, as demand from domestic Chinese spherical graphite producers remained consistent during the virus period. China’s flexibility in the pandemic arises from the fact that flake and synthetic production zines are located far away from the locations with the highest cases in the country. Even with regard to the intermediate-stage production of anode material, there has been resilience to the impact of the pandemic in Korea and Japan. Also, irrespective of the prevailing surplus, graphite and anode markets are supported by the regional governments of China, which have resulted in plans for many significant developments which indicate the country's sustained efforts of establishing China’s supply base. This allowed China to get a more powerful state in the market and slow down the diversification of the supply chain.
|Market size value in 2020||US$875.814 million|
|Market size value in 2027||US$6,310.080 million|
|Growth Rate||CAGR of 32.59% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Application, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Aoyu Graphite Group, Yingkou Botian Material Technology Limited Comp, Battery Minerals Limited, Qingdao Yanxin Graphite Products Co., Ltd, Jixi BTR graphite industrial park, Black Rock Mining, Imerys Graphite & Carbon, Syrah Resources Limited, Focus Graphite Inc., Qingdao Black Dragon Graphite Group|
|Customization scope||Free report customization with purchase|
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Frequently Asked Questions (FAQs)
Q1. What will be the spherical graphite market size by 2027?
A1. The global spherical graphite market is projected to reach a market size of US$6,310.080 million by 2027.
Q2. What is the size of the global spherical graphite market?
A2. Spherical Graphite Market was valued at US$875.814 million in 2020.
Q3. What are the growth prospects for the spherical graphite market?
A3. The spherical graphite market is projected to grow at a CAGR of 32.59% over the forecast period.
Q4. Which region holds the largest market share in the spherical graphite market?
A4. North America and Europe hold the largest share in the spherical graphite market.
Q5. What factors are anticipated to drive the spherical graphite market growth?
A5. The major factor for the growth of the global spherical market is the increasing demand for lithium-ion batteries by several end-users such as transportation, energy, and more.
Yingkou Botian Material Technology Limited Comp
Battery Minerals Limited
Qingdao Yanxin Graphite Products Co., Ltd
Jixi BTR graphite industrial park
Black Rock Mining
Imerys Graphite & Carbon
Syrah Resources Limited
Focus Graphite Inc.
Qingdao Black Dragon Graphite Group
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