Graphite Mining Market Size, Share, and Industry Analysis By Mining Type (Open-pit and Underground), By Grade (Crystalline and Microcrystalline), and Regional Forecast, 2024-2032

Graphite is a crystal form of carbon that consists of a ring of six carbon atoms closely bonded together hexagonally in widely spaced layers. The bonds within the layers are strong. However, the bonds between the layers are less in number and, therefore, weaker.

The growing demand for electric vehicles is expected to ensure a steady and robust demand for graphene (made from graphite), mainly used for energy storage. In addition, the growth in the refractory industry led to an increased demand for graphite. Refractory materials are high-temperature-resistant materials. Graphite is used in refractory materials in several ways: It produces refractory bricks such as magnesia-carbon (MgO-C), crucibles, ladles, and molds containing molten metals.

• In September 2023, an Alaska Native company invested in a project that could lead to the first graphite production in the U.S. in decades. Bering Straits Native Corp. (BSNC) invested USD 2 million in the Graphite One project, which is being explored approximately 35 kilometers north of Nome. BSNC's board approved a USD 2 million investment as part of the deal, which includes an option to invest USD 8 million in the future, the company said in a statement. The funds are intended to help Vancouver-based Graphite One Inc. conduct a feasibility study and preliminary development work.

However, government regulations to reduce carbon emissions and meet environmental targets have inhibited the graphite market. For example, many graphite producers in China (the center for processing flake graphite and nodular graphite) were shut down during the 2017-2018 environmental inspections to meet the government's environmental targets. Such graphite mine closures led to a decline in graphite production and increased prices for graphite mined in China.

After a drastic decline in 2020 due to the COVID-19 pandemic, the global natural graphite production increased in 2021. This was primarily due to the resumption of mining activities under maintenance or temporarily closed due to pandemic lockdown restrictions. China’s production experienced an upsurge in 2021 compared to 2020 due to a quick and early recovery from the pandemic. During the first quarter of 2020, several mining sites temporarily suspended their operations due to the lack of workers who could not reach mining sites due to travel restrictions.

IMPORTANT INSIGHTS

The report includes the following key findings:

• Recent Advances in Graphite Mining


• Key Industry Trends


• Regulatory Landscape in the Graphite Mining Market


• Impact of COVID-19 on the Market

SEGMENTATION

ANALYSIS BY TYPE

Based on mining type, the graphite mining market is bifurcated into open pit and underground mining. Open-pit mining methods are used when the ore is close to the ground and the surface material covering the deposit is thin. Quarrying is a form of open pit mining used to extract graphite by breaking up the rocks by drilling or using dynamite explosives to cut the rocks open and compressed air or water to split them. It is generally used to collect crushed stone, sand, rock, phosphates, aluminum, copper, presses, and coal.

Underground mining is another method/process across the industry generally used to extract mining ores and materials deep beneath the surface. Most minerals and metals, including graphite, are extracted from underground mining, which is a primary factor driving the growth of this segment.

ANALYSIS BY GRADE

Based on grade, the graphite mining market is bifurcated into crystalline and microcrystalline. All graphite deposits mined today are from the metamorphism of carbonaceous sedimentary rocks and the geological environment determines the ore type. Thermally converted carbon is the common source of amorphous graphite. Disseminated crystalline flake graphite mined from carbonaceous metamorphic rocks and lump or flake graphite mined from veins in high-grade metamorphic regions. A study by the U.S. Geological Survey (USGS) shows that in 2021, U.S. natural graphite imports were an estimated 53,000 tons, about 57% flake and high-purity, 42% amorphous, and 1% lump and chip graphite.

REGIONAL ANALYSIS

By region, the graphite mining market is divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. As per the U.S. Geological Survey (USGS), Turkey, China, Brazil, Madagascar, and Mozambique were the top five countries with 286 metric tons of the remainder, Tanzania and India together for 25 metric tons of natural graphite reserves. The graphite industry is expected to witness significant growth over the coming years as the booming electric vehicle market is expected to increase the demand for graphite. China was the top natural graphite producer in 2020, followed by Brazil, Mozambique, and others. Mozambique has emerged as a significant producer of battery-grade flake graphite with the opening of Syrah Resources' Balama project in February 2021. China refines most of the world's graphite into the material used in nearly all-electric car battery anodes, the negatively charged part of the battery.

In Europe, investments were made in new graphite mines, in addition to Norway, Sweden, and Finland. Several new natural graphite mines are being developed in North America, Africa, and Asia. Most flake graphite and the excitement around batteries and graphene fuels them. However, China remains the world's largest supplier of natural graphite, while Brazil, India, Canada, Tanzania, and Mozambique are also some of the major countries in the market.

KEY PLAYERS COVERED

The report provides the profiels of key players  such as Syrah Resources Ltd., Northern Graphite Corp, Resonac Corporation, Mason Graphite Inc., Triton Mineral Ltd., Graphite India Ltd, SGL Carbon, Eagle Graphite, and Nouveau Monde Graphite Inc.