What is Synthetic Graphite?

What are the uses of synthetic graphite?

Synthetic graphite uses cover a variety of applications, including energy storage applications and steel manufacturing, and its particular uses are dependent on its form.

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.

• Electrodes: Synthetic graphite 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: Synthetic 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: Secondary synthetic graphite is a by-product material of synthetic graphite production, and it is typically yielded as a powder. This by-product is 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 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. Unlike its secondary counterpart, primary synthetic graphite is not a by-product material.

Is synthetic graphite better than natural graphite?

As for how synthetic graphite compares to natural graphite, synthetic graphite is purer than natural graphite in terms of carbon content and tends to behave more predictably. This makes synthetic graphite a better option than natural for use in high-performance applications that require higher efficiency and reliability such as lithium-ion batteries for electric vehicles.

On the flip side, as the process is energy intensive, synthetic graphite production can be significantly more expensive than that of natural graphite, and the environmental impact of synthetic graphite is worse as well.

‘Synthetic graphite anode production can be over four times more carbon intensive than natural graphite anode production, due to its use of energy and fossil fuels as a feedstock,’ according to Benchmark.

These higher economic and environmental costs for producing synthetic graphite has led graphite end users to substitute natural graphite for synthetic graphite in battery anodes.

How big is the synthetic graphite market?

The global synthetic graphite market size is expected to come in at US$3.41 billion in 2025, according to Mordor Intelligence, and is projected to growing at a CAGR of 6.83 percent to reach more than US$4.74 billion by 2030.

In terms of overall graphite demand, Benchmark Mineral Intelligence expects to see a supply deficit from growth in the battery sector moving forward.

As a whole, it appears graphite’s future is bright. However, synthetic graphite will still face somewhat of an uphill battle. For one, improvements in natural graphite 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 synthetic graphite prices are expected, as are higher natural graphite prices, as demand rises and electric vehicle battery manufacturers vie for the limited supply outside of China.