June 23, 2024

Flake Graphite Market driven by Increasing Demand from Expanding Li-ion Battery Applications

Flake graphite is used as anode material in lithium-ion batteries due to its high purity, good electrical conductivity, and ability to intercalate lithium ions reversibly. Flake graphite is processed into spherical graphite or purified graphite to enhance its battery performance. The global demand for lithium-ion batteries is increasing due to growing demand from consumer electronics, electric vehicles, and energy storage applications. Increasing battery manufacturing activities worldwide is expected to augment the demand for flake graphite, which is predominantly used as anode material in lithium-ion batteries. 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 2024-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One major trend in the flake graphite market is the increasing demand from the lithium-ion battery industry. This trend can be attributed to rapid adoption of electric vehicles and increasing penetration of consumer electronics across the globe. According to Coherent Market Insights Analysis, global sales of electric vehicles crossed 6 million units in 2021 as compared to about 2.5 million electric vehicles sold in 2020. Rapid EV adoption is augmenting the demand for lithium-ion batteries and thereby boosting the demand for flake graphite used as anode material in batteries. Another key trend boosting the market is capacity expansion by flake graphite producers to cater to growing demand from the battery industry. For instance, in 2021, AMG expanded its spherical purification plant capacity by 10,000 metric tons per annum to cater to increasing demand from lithium-ion battery manufacturers.

Porter’s Analysis
Threat of new entrants: Low presence of barriers to entry such as technology, scale economies, or government policies makes it easier for new companies to enter the market and compete with existing players. However, high capital requirements for flake graphite mining and need for well-established supply chains are barriers for new companies.

Bargaining power of buyers: Large buyers such as steel producers have significant bargaining power over suppliers due to their bulk purchases and ability to play suppliers against each other. This allows them to negotiate for better prices and other trade terms.

Bargaining power of suppliers: Major flake graphite miners have strong bargaining power over customers due to the oligopolistic nature of supply and lack of substitutes. This enables them to influence prices and trade terms in their favor.

Threat of new substitutes: No cost-effective or widely available substitutes for flake graphite currently exist in most applications. However, continuous R&D in graphene and other carbon nanomaterials may pose a long-term threat.

Competitive rivalry: The market has several global players with large production capacities. However, barriers to enter graphite mining and high costs of expansion restrict aggressive competition in the long run.

Key Takeaways

The global flake graphite market is expected to witness high growth over the forecast period.

Asia Pacific currently dominates the market with leading producers located in China. The region accounted for nearly 50% of global supplies in 2024 owing to abundant reserves and strong manufacturing base of steel and lithium-ion batteries in China and India.

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. The market remains fairly consolidated with the top five players accounting for over 50% of global production capacity. Leading players are focusing on capacity expansions and vertical integration to gain market share.