Flake Graphite Market

Flake Graphite Market Snapshot

The global flake graphite market is expected to grow with a significant CAGR of 7.2% during forecast period of 2023 to 2033. The market is anticipated to attain a valuation of US$ 2,450.4 Million by 2033 end, from a valuation of US$ 1,222.6 Million in 2023. Significant demand growth from a wide array of industries is keeping the Year over year graph of the market high.

Flake graphite is a type of natural graphite that has a plate-like structure and occur in earth’s crust. It is mined through open-pit or underground mining techniques. Excellent thermal stability and electrical conductivity makes it ideal for applications in numerous industries. Batteries, refractories and lubricant industries are forerunners in consumption of flake graphite.

Flake graphite also finds crucial applications across automotive and aerospace industries. The product is utilized in production of components and improve surface properties across these industries. It is also substantially utilized in energy sector, primarily across nuclear reactors to absorb excessive energy.

Historic (2018 to 2022) Vs Forecast (2023 to 2033) Market Outlook

As compared to the historical CAGR of 6.1% during 2018 to 2022 period, the global flake graphite market is projected to expand at a significant growth rate of 7.2% from 2023 to 2033. This growth gain in BPS points in CAGR is attributed to the rising demand from end-use industries. High production of EVs, rising electrical appliances and high growth rate registered by consumer electronics industry, are leading factors that are anticipated to promote the additional growth of market.

The refractory industry is a prominent consumer of flake graphite, which is used to make high-temperature items like furnaces, kiln linings, reactors, and incinerators. Refractory materials typically contain large crystals and the steel industry is the leading producer of refractory products. Due to these factors, the global market for flake graphite is projected to grow significantly in the coming years.

Market Dynamics

Which Key Industries Are Driving Market Expansion?

Flake graphite is a commonly used anode material in the production of lithium-ion batteries. It plays a crucial role in the storage and release of energy. The large surface area and high conductivity make it an ideal choice as an anode. The demand for high-performance, energy-dense batteries has increased the use of graphite flakes in lithium-ion batteries, which is used in various applications, including electric vehicles, portable electronics, and energy storage systems.

Flake graphite is also used in refractories due to its high thermal stability and electrical conductivity. It improves the durability and lifespan of these materials by acting as a lubricant and reducing thermal stress. It is also used in high-temperature industrial applications, such as furnace linings and kiln linings, for its ability to distribute heat evenly and maintain the shape of the structure.

Flake graphite is used as a moderator in some nuclear reactors to slow down the speed of neutrons and sustain the chain reaction. It is also used as a structural material due to its high-temperature resistance and stability. The graphite blocks in these reactors form the core structure and provide thermal insulation to maintain the desired operating temperature.

Aside from these, the material has various uses in the chemical, paints, and coatings industries. The expansion of these industries will increase the demand for graphite and put pressure on the graphite market. Out of all the types of graphite, it is expected that the demand for flake graphite will remain resilient in the upcoming forecast period.

Which Factors Are Limiting The Market Growth?

Volatile pricing of the product is the leading factor hampering the market expansion. COVID-19 has negatively impacted the mining industry which created disruptions in the production of graphite. Particularly, Chinese market has witnessed 56% hikes in prices of flake graphite as a result of COVID-19.

Apart from COVID-19, numerous macro-economic factors has also hampered the growth. Geopolitical instability and economic recession are the leading factors that disrupted the growth rate, these factors are anticipated to impose long-term effects on the market.

Nikhil Kaitwade

Principal Consultant

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Segment-wise Analysis

Which application has a robust demand for flake graphite?

Steel-making applications hold a prominent share in the consumption of flake graphite. In the steelmaking process, graphite acts as a deoxidizing agent and inoculant, aiding the removal of impurities from the molten steel. This enhances the strength and uniformity of end product. Flake graphite is preferred for this application due to its high purity, large particle size, and high carbon content. The flake shape also provides a larger surface area for the reaction, making it more efficient than other forms of graphite. Owing to all these benefits of flake graphite in the steel-making process, it is likely irreplaceable in this industry and its usage expanding steadily with the rising production of steel.

Which End-use Industry has high growth prospects for flake graphite?

Latest study has estimated automotive industry to present high growth prospects for flake graphite over the 2023-2033 period. Diversified applications of flake graphite to aid this growth trend. From friction material for brake linings to corrosion-less engine components, and from anode material in EV batteries to catalysts in fuel cells, graphite flakes are widely implemented in the manufacturing of automobile components.

The production of electric vehicles requires significant amounts of graphite, with an average EV requiring 70 kg and a hybrid requiring 10 kg. With the growing demand for EVs, the demand for natural graphite is increasing, with 1 million EVs requiring 75,000 tonnes of graphite, resulting in a 10% increase in the demand for flake graphite.

By the end of 2033, the industry is expected to grow with a significant CAGR of about 8.7% and will occupy a prominent share of the global flake graphite market.

Region-wise Analysis

Why is China a dominating country in the global flake graphite market?

The market for flake graphite in China is significant and growing due to the country's status as the world's largest producer and consumer of graphite products. China dominates the global market due to its low production costs, large reserves, and well-established production infrastructure. Though, the market has also been facing challenges such as environmental concerns, restrictions on mining, and increasing competition from synthetic graphite. The Covid-19 restrictions in China have decreased graphite production and supply from the country. Despite these challenges, the demand for graphite flakes in China is expected to grow in the coming years, driven by the increasing demand from the lithium-ion battery industry and other high-tech applications.

How is the USA faring in the flake graphite market?

The market for flake graphite in the United States is smaller compared to China, but it is still an important market due to the country's strong industrial base and technology sector. The demand for flake graphite in the USA is driven by various industries, such as batteries, nuclear reactors, and refractories. Still, the USA currently relies heavily on imports to meet its graphite demand, as the country has limited domestic production capabilities. There has been a recent increase in interest in developing the domestic graphite market in the USA, driven by concerns over supply chain disruptions and a desire to reduce dependence on foreign suppliers. These initiatives are likely to propel the growth of the flake graphite market in the country.

What Is Growth Potential Of Indian Flake Graphite Market?

India is a growing market for flake graphite, driven by increasing demand from various end-use industries such as steelmaking, lithium-ion batteries, and refractory materials. The country has a large demand for graphite due to its expanding steel and automotive industries, as well as its growing lithium-ion battery market. In recent years, the Indian government has taken steps to increase domestic production of flake graphite to reduce dependence on imports and support the growth of local industries. This has created opportunities for the participants in the Indian market. During the forecast period of 2023 to 2033, the Indian flake graphite market is anticipated to expand rapidly and emerge as a key country in the global market.

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Market Competition

Players in the flake graphite market are using various strategies, including mergers and acquisitions, to expand their businesses. Leading manufacturers are also expanding their global presence by entering emerging economies to establish mines and production facilities. This helps them reduce their capital expenditures and operating expenses while maximizing profits.

Few of the recent developments in the industry are:

• In May 2022, The Northern Graphite Company acquired the facility to produce 40,000 to 50,000 tonnes of graphite annually in Quebec and Namibia, making it the third largest producer of natural graphite not based in China.
• In their second quarter report of 2022, Tirupati Carbon & Chemicals Pvt. Ltd. revealed plans for rapid expansion. Their 18,000 tonnes per year Sahamamy facility expansion is expected to be finished by 2022 and they intend to establish another production facility with a capacity of 54,000 tonnes per year in Madagascar by 2023.

Scope of the Report

Key Segments Profiled in the Market

By Application:

• Battery
• Lubricant
• Refractory
• Foundry Facing
• Steel-Making
• Neutron-Moderator
• Others

By End-Use:

• Automotive
• Electrical and Electronics
• Metallurgy
• Chemical
• Energy Generation
• Paints & Coatings
• Others

By Region:

• North America
• Latin America
• Western Europe
• Eastern Europe
• South Asia and Pacific
• East Asia
• Central Asia
• Russia & Belarus
• Balkan & Baltic Countries
• Middle East and Africa