Graphite Market Regional Analysis:
APAC Market Insights
The graphite market in Asia Pacific industry is likely to hold the largest revenue share of 47% by 2034 owing to increasing demand for consumer electronics and electric vehicles, rapid industrialization in countries such as China, India, South Korea, and Japan, and increasing demand for graphite from steel manufacturers. China dominates the market due to its abundant natural graphite resources, low production costs, and rising demand across several industries.
China is the world's largest consumer and producer of graphite electrodes. Based on USGS data, China produced 820,000 tons of graphite in 2021; this number increased to approximately 1.25 million tons in 2023. This accounts for 79% of the world's graphite production. China is also a significant producer of synthetic graphite, often used in high-tech applications, including lithium-ion batteries. In addition, the favorable government regulations to manage the environmental impacts of graphite mining and optimize resource use are expected to support market growth going ahead.
The graphite market in India is expected to register rapid growth during the forecast period. This growth can be attributed to rapid urbanization, increasing sales of electric vehicles, and growing domestic demand for steel, batteries, and electronics. India holds significant graphite reserves, estimated at around 11 million tonnes in Jharkhand, Odisha, Tamil Nadu, and Arunachal Pradesh. In addition, it exports raw or semi-processed graphite and according to the OEC, it exported USD 170K in natural graphite in 2022.
North America Market Insights
The North America graphite market is expected to register significant CAGR between 2025 and 2034, propelled by increasing production of electric vehicles in the U.S. and Canada, high demand for graphite in energy and consumer electronics applications, and government norms to promote clean energy and reduce carbon emissions. In addition, the presence of industry giants and tremendous investments in research and development activities to increase graphite production is expected to fuel market growth during the forecast period.
The U.S. currently has minimal natural graphite production, relying heavily on imports to meet its industrial needs. However, to reduce the dependence on imports, the country is investing in synthetic graphite production. For instance, Novonix, an Australian company is constructing a large-scale synthetic graphite factory in Chattanooga with a conditional loan of USD 755 million from the U.S. Department of Energy. The company aims to supply graphite for 3,25,000 EVs by 2028.
In 2022, Canada exported USD 22 million worth of natural graphite and USD 14 million of synthetic graphite, primarily to the U.S. The graphite market is rapidly expanding due to rising EV production, high focus on renewable energy storage, and strong government support. In addition, rising investments in enhancing graphite production capabilities and increasing applications of graphite across several sectors are expected to boost market growth in the country.
