Natural graphite is emerging as a critical material in the clean energy transition, driven by rising demand from electric vehicles and large-scale energy storage systems.

Asia Pacific, led by China which produces about 80% of the world's graphite, held over 52% of the market share in 2024, benefiting from rapid industrialization and high production levels.

The market's growth is mainly fueled by increasing demand for lithium-ion batteries in EVs and energy storage, along with lightweight components in aerospace and automotive sectors.

Major applications include battery anodes for EVs, renewable energy storage, refractories, foundry, friction products, and other industrial uses, with Asia-Pacific expected to lead in demand.

Growth factors include rising EV adoption, energy storage needs, and industrial applications, while challenges involve supply chain issues, environmental regulations, and competition from synthetic graphite.

The global natural graphite market was valued at USD 32.5 billion in 2024 and is projected to reach USD 49.51 billion by 2032, growing at a CAGR of 5.4%, with further growth expected to USD 7.2 billion by 2034 at a CAGR of 9.5%.

Environmental concerns related to mining, chemical processes, and carbon footprints are prompting the industry to adopt recycling and sustainable practices.

Recycling initiatives, including over 99% recovery technology for EV batteries, are gaining importance, supported by regulations such as the EU's battery recycling mandates.

Leading industry players like AMG Critical Materials, Superior Graphite, and others are focusing on reducing carbon footprints and improving sustainability, with companies worldwide working on enhancing purity and scaling production.

China's dominance in graphite supply creates geopolitical vulnerabilities, prompting efforts to diversify sources in regions like Southeast Africa.

ESG considerations and regulatory compliance are increasingly shaping industry practices and strategic decisions.