Why did graphite prices go up in the first half of 2024?

This trend continued during the first half of 2024 as graphite supply from China ballooned, adding headwinds to global prices for the battery metal and threatening capacity outside of the Asian nation.

Why is graphite important in battery technology?

Battery metals like graphite are becoming increasingly important for their role in battery technologies. Both synthetic and natural graphite, in the form of spherical graphite, are currently used in the anodes of lithium-ion batteries, an end-use segment that continues to consistently grow its market share.

Will graphite play a role in electric vehicle batteries?

Market watchers and analysts are optimistic about graphite's role in electric vehicle (EV) batteries for the foreseeable future; however, significant increases in supply out of China continue to keep prices for both types of graphite muted.

Why are graphite prices so low?

Graphite prices have retreated and remained depressed with the rise of Chinese production of the battery metal, making it challenging for miners outside of China to keep their projects economically viable. "It's been especially difficult for projects in North America, where we actually have only one operating mine,” said Georgiev.

Why is graphite a challenge in the graphic market?

Exponential growth from the electric vehicle sector has propelled the industry’s graphite requirements and created challenges for in the graphic market. Various widely-used lithium-ion batteries – from LFP to NCM cathodes – use graphite anodes.

How big is the graphite market in 2023?

Fortune Business Insights says that the global market size was valued at USD 7.32 billion in 2023 and is projected to reach USD 13.35 billion by 2032. At what CAGR is the graphite market projected to grow during the forecast period?