Demand for Expandable Graphite Growth and Projections
Figure 1 – Expandable Graphite demand and growth – Source:- Benchmark Mineral Intelligence
Expandable graphite is one of the fastest growing markets along with Li-ion batteries and is the only graphite market to have experienced price increases over the last couple years which is largely based on Jumbo and Large flake material.
Development of Expandable Graphite involves treating flake graphite and heating it to cause the flakes to split apart, expand and increase hundreds of times in volume. This material is pressed into sheets to create a foil which can then be cut into shapes and used in many applications including consumer electronics, high end gaskets that are heat and corrosion resistant, fire retardants, smart building products, flow batteries and fuel cells.
Fuel cells are already a billion-dollar industry with commercial buses, forklift trucks, standby power plants, etc already in operation. Commercial fuel cell cars currently exist now and many observers expect them to increase in popularity quicker than EVs.
Due to the growth in demand, and declining production from Shandong Province, China, there are now shortages of large and jumbo flake concentrates. Prices and margins for Expandable Graphite are high and expected to grow further as demand increases.
Rapid demand growth is also forecasted due to the increasing use of high-energy-density batteries in mobile devices.
Industry News
Figure 1: Expandable Graphite Market Size - source Mordor Intelligence
Recent data from Benchmark Mineral Intelligence (2024) uncovered that flake graphite production will require a staggering $7.5 billion investment to meet projected demand by 2035. As the largest component by volume in Li-ion batteries, graphite requires up to 10x more material than lithium. To meet projected demand for electric vehicle and energy storage batteries, over 300 new graphite mines will need to be built before 2035, according to Benchmark's data (2024).
The global demand for expandable graphite is increasing, fueled by its unique properties and wide-ranging industrial applications. As a modified form of natural graphite that expands upon heating, expandable graphite provides key advantages such as fire resistance, electrical conductivity, and chemical stability. These attributes have established it as an essential material in numerous sectors, including construction, automotive, and energy storage, among others.
Benchmark Intelligence (2024), 'Flake graphite needs at least $7.5 billion to meet 2035 battery demand'. https://source.benchmarkminerals.com/article/flake-graphite-needs-more-than-7-5-billion-to-meet-2035-battery-demand.