US graphite demand is seen rising more than 600% to almost 700,000 tonnes by 2034, as the country seeks a domestic supplier alternative to China.
Pricing agency Fastmarkets’ principal analyst Amy Bennett said: “This is a pivotal moment in the US graphite sector, with the US aiming to de-risk from China and become more self-sufficient in the graphite space, particularly for battery-grade materials.”
Fastmarkets said interest in regional graphite prices has spiked following the implementation of China’s export controls on graphite, which we first reported in October 2023 . The US Inflation Reduction Act (IRA) and updated Section 301 tariffs, which reflect the US government’s ambition to establish a more independent graphite supply chain, are also driving demand.
Graphite is a crucial raw material in the anode of lithium-iron phosphate (LFP) and nickel-cobalt-manganese (NCM) batteries. China is the world leader in graphite production.
In its Global EV Outlook 2024 report, the International Energy Agency stated almost 14 million new electric cars were registered globally in 2023, bringing their total number on the roads to 40 million. Electric car sales in 2023 were 3.5 million higher than in 2022, a 35% year-on-year increase. This is more than six times higher than in 2018.
Fastmarkets has launched a price assessment for US graphite flake to reflect interest.
