The World Steel Association stated that global crude steel production reached 1,880.1 million tons (Mt) in 2019. As per this organization, 1,461.2 Mt of crude steel was produced from January 2021–September 2021. The surge in steel production can be attributed to the increasing use of steel products in several end-use industries, such as automotive, construction, oil and gas, and manufacturing. Steel producers use a considerable volume of graphite in manufacturing processes, due to its beneficial properties such as high durability, excellent corrosion resistance, and exceptional strength at extreme temperatures.
Additionally, the surging demand for lithium-ion (Li-ion) batteries will help the graphite market advance at a CAGR of 7.4% between 2020 and 2030. According to P&S Intelligence, the market revenue stood at $19,092.9 million in 2019, and it will reach $36,889.1 million by 2030. Each Li-ion battery requires more graphite than lithium as increased graphite content enhances the capacity to intercalate lithium. A notable quantity of graphite is used in such batteries as an anode because natural graphite is less expensive than synthetic graphite and lithium titanate.
Currently, the needs of end-use industries are being met by GrafTech International Ltd., Syrah Resources Ltd., Qingdao Guangxing Electronic Materials Co. Ltd., Tokai Carbon Co. Ltd., SGL Carbon SE, Graphite India Ltd., Shanshan Corporation, Fangda Carbon New Material Technology Co. Ltd., HEG Ltd., and Showa Denko K.K. Nowadays, these companies are focusing on mergers and acquisitions to cater to a greater number of end users. For example, in December 2019, Showa Denko K.K. acquired Hitachi Chemical Ltd. for $8.8 billion to emerge as one of the leading suppliers of graphite to manufactures of Li-ion batteries.
Globally, the Asia-Pacific region led the graphite market in the preceding years, due to the flourishing manufacturing sector and mounting investments being made in the electric vehicle (EV) industry. Additionally, the high-volume integration and production of graphite electrodes in India and China will also accelerate the consumption of graphite in the region. In the recent past, China consumed the highest volume of graphite among APAC countries, due to the escalating crude steel production and rising share of electric-arc-furnace-based steel production in the nation.
Therefore, the expanding steel industry and the booming demand for Li-ion batteries will augment the need for graphite in the upcoming years.