Synthetic Graphite Market Size

Global Synthetic Graphite Market size was valued at USD 3.6 billion in 2023 and is poised to grow from USD 3.83 billion in 2024 to USD 6.35 billion by 2032, growing at a CAGR of 6.5% during the forecast period (2025-2032). 

The swift uptake of electric vehicles (EVs) worldwide is fueling demand for lithium-ion batteries, where synthetic graphite is an essential material to improve battery performance. The growing renewable energy sector also needs energy storage solutions, and hence there is a growing demand for synthetic graphite in lithium-ion batteries for grid-scale energy storage systems. Moreover, the growing application of consumer electronics necessitates high-performance batteries, and synthetic graphite is critical to ensuring battery efficiency and stability for smartphones, laptops, and wearables. The growing need for energy storage solutions to help balance intermittency in renewable energy resources further boosts the demand for synthetic graphite-based lithium-ion batteries in grid-scale applications.

Continuously being in R&D in material science delivers the innovation for the process of production for synthetic graphite and contributes toward better performance and economics for battery applications. Global governmental policies supporting electric mobility through subsidization, tax credits, and regulation mandates are arousing the demand for synthetic graphite in lithium-ion batteries for electric vehicles.

• For instance, India's Ministry of Heavy Industries launched the Electric Mobility Promotion Scheme 2024 with a budget of Indian rupees 5 billion (USD 60.34 million) aimed at electric two-wheelers and three-wheelers. The scheme offers incentives for vehicles with superior batteries, promoting the adoption of cutting-edge technology in the EV sector.

What Role Does AI Play in Enhancing Synthetic Graphite Manufacturing for EV Batteries?

AI is increasingly being used in the synthetic graphite industry, especially in the production and quality control processes. By using machine learning and data analytics, the production of synthetic graphite can be enhanced, increasing efficiency, preventing waste, and improving material properties. Artificial intelligence (AI)-enabled technologies can also assist in forecasting how a material will perform in different applications, e.g., lithium-ion batteries for electric vehicles (EVs). In addition, by predicting demand and optimizing the use of resources, AI can streamline the supply chain. This is especially significant as demand for synthetic graphite increases in the energy storage and electric vehicle industries.

• For instance, Graphjet Technology in Malaysia is pioneering in November 2024 a green solution to produce graphite from palm kernel shells. The company uses AI algorithms to optimize the pyrolysis process to increase output and save energy. The AI integration helps the company achieve its target of manufacturing 3,000 tonnes of synthetic graphite per year, scalable to 100,000 tonnes within five years.