Adroit Market Research - Industry Insights

Graphite is a form of crystalline carbon that occurs naturally. Hence, it is a natural element mineral established in igneous and metamorphic rocks. Graphite is the mineral of extravagances. It is enormously soft, chops with light pressure and have low specific gravity. Whereas, it is exceptionally resistant to heat and inert in contact with other materials. Thus, extreme properties are offering it with extensive range of usages in manufacturing and metallurgy.

Graphite is one of the essential raw material used in appliances of our daily use, Graphite is used in manufacturing of television, smartphone, tablet, computer and lithium-ion batteries. Graphite is the form of two natural

Graphite is a form of crystalline carbon that occurs naturally. Hence, it is a natural element mineral established in igneous and metamorphic rocks. Graphite is the mineral of extravagances. It is enormously soft, chops with light pressure and have low specific gravity. Whereas, it is exceptionally resistant to heat and inert in contact with other materials. Thus, extreme properties are offering it with extensive range of usages in manufacturing and metallurgy.

Graphite is one of the essential raw material used in appliances of our daily use, Graphite is used in manufacturing of television, smartphone, tablet, computer and lithium-ion batteries. Graphite is the form of two natural carbons, non-metallic mineral. With the stiffness and natural strength of material, graphite is the best conductor of electricity and heat. Graphite is also a refractory material with high melting point i.e. almost 3650°. Graphite also has natural lubricity and lightest of strengthening agents. Whereas graphite has high resistance to corrosion.

Topographic Occurrence:

Graphite is the mineral formed when carbon is exposed to pressure and heat in Earth’s crust and upper mantle. Pressures in the range of almost 80,000 pounds per square inch and range of temperatures around 760°C are required to generate graphite. However, these resemble to granulite metamorphic faces.

Graphite from Coal Metamorphism:

Graphite forms the metamorphism of coal seams. Hence, organic material in coal is formed majorly of oxygen, carbon, nitrogen, sulfur and hydrogen. On the other hand, heat of metamorphism destroys organic molecules of coal, volatilizing hydrogen, oxygen, sulfur and nitrogen.

The graphite arises in “seams” corresponding to the main layer of coal. On mining, the material is identified as ‘amorphous graphite’. Word ‘amorphous’ is not correct in usage, having a crystalline structure. However, from mine the material has the appearance that is similar to lumps of coal instead of dull and bright banding.

Graphite from the provincial metamorphism

A huge amount of graphite is seen at the surface of Earth formed at convergent plate boundary where limestones as well as organic-rich shales were exposed to pressure and heat of regional metamorphism. Also, creates gneiss, schist and marble consisting of tiny flakes and crystals of graphite.

When graphite is of high concentrations, where rocks can be crushed, mined to the particle size liberating the graphite flakes and administered by specific gravity froth flotation or separation to remove low-density graphite. However, the product generated is known as ‘flake graphite’.

Graphite in Meteorites and Igneous Rocks

Small amounts of graphite occurs as primary mineral in igneous rocks which is known as tiny particles in syenite and basalt flows. However, it is considered for forming pegmatite. Thus, iron meteorites contain less amounts of graphite and form graphite deprived of economic importance.

Graphite from Hydrothermal Metamorphism:

Small amount of graphite is formed by the reaction of carbon compounds in rock during hydrothermal metamorphism. However, carbon is deposited and metabolized in veins related to hydrothermal minerals. On precipitation, it has high degree of crystallinity and makes the preferred material for electrical uses.

Some Graphite facts:

United States has no domestic production of natural graphite, on consuming by around 95 U.S. companies. Main manufacturers of natural graphite involve North Korea, Brazil and China.

The good-quality graphite has observed an increase in demand in the forecast period, where supply looks to be steady and concerns regarding the exports controlling China.

However, Graphite is the complex strategic mineral. Where United States imports around 100% of the graphite consumed.

Even though there are more than 200 applications of graphite, one with the significant and enduring demand of future is lithium-ion batteries.

Types of Graphite used in batteries:

Graphite is not the frank commodity product, which comes in different specifications and forms. However, two main forms of natural graphite, sourced directly from synthetic graphite and mines is made of petroleum coke. Consecutively, there are 3 main types of natural graphite: vein, amorphous and flake. Synthetic and natural graphite are using li-ion anode material, where natural flake graphite considers the material with high carbon grades and best suited for use in batteries. It is the flake graphite upgraded to purity to make ‘spherical’ graphite using the li-ion batteries. Hence, purified natural flake graphite is having high crystalline structure and provides better thermal and electrical conductivity as compared to synthetic material, whereas synthetic material are having long lifespan.

Size is an important factor on coming to natural graphite for batteries. Basically, medium and small flake sizes or fines are used for production of spherical graphite for the production of battery. However, flake sizes are larger than the mesh not being used.

Drivers for Demand:

The growth and demand of market for graphite comes from lithium-ion batteries. Hence, batteries represent the most important driver for demand for battery-grade graphite (CSPG or coated spherical).

However, due to the performance and cost, various battery manufacturers are switching to natural graphite.

In the market of lithium-ion battery, there are around three main segments of market:

Stationary Storage Battery: Stationary Storage Battery are used as energy storage for electrical grid, residential and commercial buildings, referring to grid-storage batteries. Stationary storage battery sales will increase from 678 MWh to 8.3 GWh with a CAGR of 50% in the coming years.

Transportation Battery: Transportation battery is used to power electric vehicles, where electrification of automotive is increasing from niche to mainstream. Customer Electronic Battery: Customer Electronic Battery present in laptops, smartphones, tablets, power tools, wearable electronics and battery-powered devices.

How is natural graphite priced?

Mined graphite ore is beneficiated in graphic concentrate and screened and sized in several mesh sizes. Flake prices are determining on the basis of range of factors like impurity levels, flake size and graphite content. Basically, XL flake and large flakes with high purity command the premium price.

On considering the other illiquid market like lithium, market price for graphite is opaque. Whereas price references occurs, that are used as reference and not in contracts. The other factor where the prices of references are based on the huge range of graphite qualities and make tying contracts to the index complex to accomplish. Therefore, pricing is converted bilaterally within sellers and buyers.

Natural graphite prices

On the combination of tightening supply in China for the high purity grades in small sizes and encouraging EV growth helpful for graphite prices in long term, normal selling prices in market remain quiet. High growth markets like li-ion batteries have a substantial impact on consumption and demand.