Flake graphite is a crystalline form of carbon that is soft and opaque. It is an essential raw material used in foundry products, steelmaking, lubricants, electronics, and refractories among others. Flake graphite has high thermal conductivity and electrical properties. It is widely used in lithium-ion batteries as anode material. The rising demand for lithium-ion batteries from consumer electronics and electric vehicles is expected to drive the growth of flake graphite market.
The Flake Graphite Market is estimated to be valued at US$ 16.05 Bn in 2023 and is expected to exhibit a CAGR of 8.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving the flake graphite market growth is rising demand from lithium-ion battery manufacturers. Lithium-ion batteries have emerged as one of the major end-use application for flake graphite owing to its properties like high energy density and longer run time. Flake graphite forms the anode material in lithium-ion batteries due to its electronic and thermal conductivity properties. With increasing penetration of electric vehicles and focus toward clean energy, the demand for lithium-ion batteries is growing exponentially. This is positively impacting the consumption of flake graphite by battery manufacturers. Various initiatives by governments across regions to boost the adoption of electric vehicles using subsidies and incentives is further supporting the market growth.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the flake graphite market is moderate as it requires high capital investment for mining, processing and product innovations. Bargaining power of buyers: The bargaining power of buyers is moderate as prices are determined by key players and substitutes are limited. However, growth in renewables industry empowers buyers. Bargaining power of suppliers: The bargaining power of suppliers is high due to scarcity of raw material sources and dependence of end-use industries on consistent supply. Threat of new substitutes: The threat of new substitutes is moderate as graphite cannot be directly replaced in applications requiring its unique properties like heat resistance and electrical conductivity. Competitive rivalry: Competition is intense with technological developments and acquisitions.
SWOT Analysis
Strength: High demand from lithium-ion batteries for electric vehicles and power storage. Dependable physical and electrical properties of flake graphite enable diverse industrial applications. Weakness: Overdependence on China for graphite supply. Vulnerability to cost fluctuations due to limited mining sites and environmental regulations. Opportunity: Expanding usage in concrete, plastics and nuclear power generation. Growing adoption of solar panels and wind turbines driving demand. Threats: Alternatives like synthetic graphite gaining traction in specialty applications. Disruptions from geopolitical issues add to supply chain risks.
Key Takeaways
The global flake graphite market is expected to witness high growth, exhibiting CAGR of 8.2% over the forecast period, due to increasing usage of lithium-ion batteries in electric vehicles. North America and Europe are expected to be the fastest growing regional markets due to stringent environmental norms favoring cleantech. Regional analysis indicates that China will continue dominating global production and supply, accounting for over 70% of the market share owing to abundant reserves.
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 is fragmented with top 5 players holding less than 30% share. Notable M&A activities reflect focus on augmenting resources and diversifying product portfolios.
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