The steel industry uses a large volume of graphite due to its high corrosion resistance, strength, and durability. In recent years, the production of steel has significantly surged due to the increasing requirement for steel products in the residential, automotive, construction, and oil and gas industries. Thus, the spurring demand for steel from these end-use industries will accelerate the graphite market at a 7.4% CAGR during 2020–2030. According to P&S Intelligence, the market will grow from $19,092.9 million in 2019 to $36,889.1 million by 2030.

Additionally, huge quantities of graphite are also used in the production of batteries, especially lithium-ion (Li-ion) batteries, owing to the rising installation of these energy storage units in electric vehicles (EVs), smartwatches, laptops, smartphones, and smart home appliances. Each Li-ion battery needs 10–20 times more graphite than lithium because a high quantity of this mineral increases the battery's capacity to intercalate lithium. A considerable amount of graphite is used in the anode of Li-ion batteries. Currently, battery manufacturers are shifting from synthetic graphite and lithium titanate to natural graphite.

Thus, Asia-Pacific (APAC) consumed the highest quantity of graphite, wherein China adopted the largest volume. Additionally, the APAC graphite market is also expected to demonstrate the fastest growth in the coming years due to the expanding EV and consumer electronics industries, which require Li-ion batteries in abundance. Moreover, the unearthing of new mineral deposits and escalating production and import of graphite in APAC will amplify its usage in the foreseeable future.

The widening application base of graphite has encouraged graphite producers to opt for mergers and acquisitions so that they can reach out to more customers. For instance, in December 2019, Showa Denko K.K. acquired Hitachi Chemical Ltd. for $8.8 billion to become a leading supplier of graphite to Li-ion battery manufacturers. Similarly, in April 2020, Tokai Carbon Co. Ltd. acquired TokaiCarbon Savoie SAS (formerly Carbon Savoie SAS), a France-based carbon and graphite manufacturer, for $183.0 million. With this acquisition, the former plans to diversify its portfolio with the products offered by the latter and attract more consumers in Europe.

Thus, the rising steel production and EV and consumer electronics adoption will augment the need for graphite in the immediate future.