What's Happening?
The global graphite market, valued at USD 15.67 billion in 2024, is projected to grow at a 15.1% CAGR, reaching USD 36.40 billion by 2030. This growth is driven by increasing demand for electric vehicles and energy storage systems, positioning graphite as a key
material in clean energy and battery development. Natural graphite is mined from mineral deposits, while synthetic graphite is produced through high-temperature processing. China dominates global production, accounting for over 70% of output, with the U.S. relying heavily on imports.
Why It's Important?
Graphite is essential for lithium-ion batteries, which are crucial for electric vehicles and renewable energy storage. The market's growth reflects the global transition towards electrification and clean energy. However, the concentration of production in China poses strategic risks, highlighting the need for diversified supply chains. The U.S. and other countries are exploring alternative sources and sustainable practices to mitigate these risks and support domestic demand.
Beyond the Headlines
The environmental impact of graphite mining and production, including ecosystem disruption and greenhouse gas emissions, necessitates sustainable practices. Efforts to recycle spent batteries and develop alternative carbon materials are crucial for reducing reliance on China and ensuring long-term supply chain resilience.
