Thrifty Banker
  • Politics
  • Business
  • World
  • Investing
  • Politics
  • Business
  • World
  • Investing

Thrifty Banker

Investing

What is Synthetic Graphite? (Updated 2024)

by January 18, 2024
January 18, 2024
What is Synthetic Graphite? (Updated 2024)

Synthetic graphite is a unique material that’s often used in metal fabrication and in devices like batteries and solar panels. Composed of high-purity carbon, it’s able to withstand high temperatures and corrosion.

Those points make it a great option for highly specialized industries that need predictable results from carbon materials.

Understanding the difference between synthetic and natural graphite is important for investors, as each industry typically needs a specific type of graphite. Here’s a look at the synthetic graphite market and what it has to offer.

Is synthetic graphite better than natural graphite?

Synthetic graphite may be intriguing for investors because of its presence in lucrative industries with rising demand. However, before diving into the space it’s important to understand the nuances and misconceptions surrounding synthetic graphite, as well as how it differs from natural graphite.

One key point is that synthetic and natural graphite have their own applications and generally do not have a relationship in the broader marketplace — except of course that they are both called graphite.

Synthetic graphite is purer in terms of carbon content and tends to behave more predictably, which is why it has found a niche in solar energy storage and electric arc furnaces. Synthetic graphite can also be significantly more expensive to produce than natural graphite, as the process is fairly energy intensive. In fact, the cost can be double or triple the standard price for natural graphite.

Restrictively high prices and specific use cases mean synthetic graphite doesn’t often compete with natural graphite.

What are the types and uses of synthetic graphite?

Synthetic graphite typically comes in two forms: electrodes and graphite blocks. The form of synthetic graphite directly determines which industries it will be used in. Here’s a look at a few of them:

Electrodes — Electrodes are primarily created using petroleum coke as a precursor and are almost exclusively found in electric-arc furnaces — these furnaces are used for melting steel and iron, and producing ferroalloys.Graphite blocks — Graphite blocks, or isotropic graphite, are primarily used for energy storage in the solar industry. These blocks are made using the same petroleum coke process as electrodes, but differ slightly in the structure of the coke used.Secondary synthetic graphite — Producing synthetic graphite also creates a by-product known as secondary synthetic graphite that is typically yielded as a powder. It’s considered a low-cost graphite material and some forms of it can compete with natural graphite in applications like brake linings and lubricants.Primary synthetic graphite — Primary synthetic graphite is not a by-product like its secondary counterpart. It is typically manufactured in powder form and used for high-end lithium-ion batteries. However, it is more expensive to produce and can cost the same amount as manufacturing an electrode.

How big is the synthetic graphite market?

The outlook for the graphite market is positive, and is tied to the battery industry and energy storage applications.

The global synthetic graphite market size was valued at more than US$2.37 billion in 2022, according to Straits Research, and is projected to growing at a CAGR of 4.7 percent to reach more than US$3.93 billion by 2031.

In terms of graphite demand, Benchmark Mineral Intelligence expects to see gradual growth from the battery sector moving forward. Tony Alderson, price and data analyst at Benchmark Mineral Intelligence, has said the firm attributes this expected growth to strong long-term fundamentals for the battery market.

As a whole, it appears graphite’s future is bright. However, synthetic graphite will still face somewhat of an uphill battle. Natural graphite is set to be the fastest-growing graphite subset through 2030 — and improvements in purity are helping it enter the nuclear technology and high-end battery markets, which have typically been owned by synthetic graphite.

Price will certainly continue to be a determining factor in the competition between natural and synthetic graphite. Data from S&P Global Market Intelligence shows that processing synthetic graphite is three times as energy intensive as processing natural graphite, which translates into higher costs for the artificial material.

Going forward, higher prices are expected for graphite, whether natural or synthetic, as demand rises and electric vehicle battery manufacturers vie for the limited supply outside of China and Russia. “We believe that the average price of graphite will continue to rise in the future due to supply and demand imbalances, including Russia, which was one of the major graphite suppliers before the Russia-Ukraine war,” said Ivan Lam, senior analyst at Counterpoint Research.

Which companies make synthetic graphite?

The global synthetic graphite market is “partially consolidated” and dominated by a handful of major companies, according to a report by Mordor Intelligence. The top five players in this space are: GrafTech International (NYSE:EAF); Resonac Holdings (TSE:4004), formerly Showa Denko; BTR New Material Group (BSE:835185); Lianyungang Jinli Carbon; and Shanshan Technology (SHA:600884).

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
Top 10 Uranium Mines in the World (Updated 2024)
next post
Israeli war cabinet divided over plans to scale back Gaza war

Related Posts

Large Scale Uranium Project Secured in Canada

January 19, 2024

QX Resources: Tier 1 Lithium Assets in the...

January 13, 2024

Bitcoin: A Brief Price History of the First...

November 30, 2023

Zeni Resources

February 6, 2024

Alianza Minerals Moves Ahead with New Focus on...

August 15, 2023

VVC Resources Ramps Up Drill Work at Syracuse...

September 7, 2023

David Erfle: Gold Stock Mean Reversion About to...

March 8, 2024

VIZSLA COPPER ANNOUNCES UPSIZE OF NON-BROKERED PRIVATE PLACEMENT...

March 20, 2024

Nextech3D.ai Lands $1.8 Million 3D Modeling Deal with...

February 14, 2024

Analyst Deems Brightstar Resources an Active Agitator Amid...

May 20, 2024

    Sign up for our newsletter to receive the latest insights, updates, and exclusive content straight to your inbox! Whether it's industry news, expert advice, or inspiring stories, we bring you valuable information that you won't find anywhere else. Stay connected with us!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      Top 10 Countries for Natural Gas Production (Updated 2024)

      April 6, 2024
    • 2

      Understanding Lithium Mineralogy from an Investment Perspective

      September 12, 2023
    • 3

      US Capital Global Facilitates $50MM Financing to Accelerate Charbone Hydrogen’s North American Expansion

      June 6, 2025
    • 4

      Israel confirms it is arming Hamas rivals in operation opposition calls ‘complete madness’

      June 6, 2025
    • 5

      A GOP operative accused a monastery of voter fraud. Nuns fought back.

      January 3, 2025
    • 6

      Crypto Market Recap: Strategy Eyes US$1B Raise for Bitcoin Push, UK Regulator Reverses ETN Ban

      June 6, 2025
    • 7

      China’s aircraft carriers send message in the open Pacific for the first time – and bigger and more powerful ships are coming

      June 16, 2025

    Categories

    • Business (1,054)
    • Investing (2,081)
    • Politics (2,977)
    • Uncategorized (20)
    • World (3,389)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: thriftybanker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thriftybanker.com | All Rights Reserved