Anode-grade graphite is a sought-after material for lithium-ion batteries. Despite the demand, however, the market faces several challenges. These include the high cost of purifying graphite to achieve 99.99 per cent purity — the quality that manufacturers of lithium-ion batteries and electric carmakers require for their products.
As a result, the graphite price trend in the last couple of years has fluctuated. This affected the downstream markets that rely on the supply of natural and synthetic graphite.
The electric vehicle (EV) manufacturing industry is one of the markets affected by graphite prices and supply. Graphite is a primary component in rechargeable batteries for handheld devices, which has now made its way into the production of lithium-ion battery packs for electric vehicles.
The world’s biggest automakers are now pushing through with the mass production of EVs. Governments, especially those bound by the Paris Agreement, are expected to pass policies against combustion engines and support the production of eco-friendly vehicles to reduce air pollution.
These events are driving the EV industry today. As a result, the demand for raw materials used in lithium-ion battery packs and other manufacturing essentials is also increasing.
The graphite market is expected to ride the growth of the EV and lithium-ion battery industries. But while this is the forecasted outcome for the market, fluctuations in demand could still occur. Investors, manufacturers, and budding graphite producers need to put a buffer between their businesses and such events.
One of the ways to do that is to obtain accurate and real-time industry data, which includes analysis on the cost of graphite and the availability of supply. Benchmark Minerals can provide that information.
Information on graphite market prices and trends will be advantageous to investors and companies involved in the production of rechargeable lithium-ion batteries and EVs. Our data can help you make smart business decisions and prepare you for trends that could challenge your company.
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