Global Graphite Price Rise in October 2023 Amidst Supply Curtailment and Rising Battery Demand

The price of Graphite increased in the Global market as the supply decreased amidst curtailing exports from major manufacturers such as China. The demand from the downstream battery industries remains rising as the electric vehicle industry observes bullish market sentiments. The global market players are raising the quantity of their orders before the Chinese government bans the export of Graphite. Several companies across the globe in the European and US regions, along with the Asian market, are expected to launch a few new projects showing an uprising price trend for Graphite for the forthcoming months in the last quarter of 2023.

The unexpected export controls imposed by the Chinese government on Graphite have left market participants pondering the potential impact on both Chinese Graphite exports and the global supply chain for anode raw materials. The move, which China's Ministry of Commerce announced last Friday, aims to protect national security by subjecting certain types of Graphite to export controls. Recently, the III. Hungarian Battery Day brought together major investors and battery manufacturers through an event organized by the Hungarian Battery Association. The gathering was a forum to discuss the growth of the Graphite and battery markets across Europe. Prominent battery manufacturer Contemporary Amperex Technology Co., Limited (CATL) is committed to establishing a sustainable battery production value chain.

Similarly, Fiamm celebrated the production of its 100 millionth battery at its Veronella plant in Italy, leading to increased demand for Graphite. In the United States, the battery manufacturing sector saw increased production rates as Indian battery manufacturer Epsilon Advanced Materials (EAM) announced a $650 million investment in a manufacturing facility in North Carolina to strengthen the Electric Vehicle (EV) battery industry. The establishment of these plants, coupled with rising demand for batteries in the renewable energy and electric vehicle sectors, contributed to a rise in Graphite prices in the global spot market.

Furthermore, in the Asian market, the demand for Graphite is rising as the battery manufacturing group GS Yuasa is set to supply two battery storage systems to the Japanese petroleum group ENEOS. Yuasa will install a 202MWh lithium-ion container-type BESS at ENEOS' Chiba Refinery and an 88MWh system at the group's Muroran plant. Additionally, Indian lead and battery manufacturer Exide announced a $12 million investment in its subsidiary, Exide Energy Solutions (EES), as part of its second investment in as many months. This investment aims to support the construction of a lithium-ion battery cell manufacturing plant in Karnataka state, further boosting global demand for Graphite.

According to ChemAnalyst, the price of Graphite is expected to exhibit steady growth in the last quarter of 2023 worldwide. The export restrictions imposed by Chinese manufacturers are likely to reduce inventory levels and create a supply shortage in major warehouses. Demand from the automotive and renewable energy sectors is expected to remain strong, as many countries are committed to reducing CO₂ emissions.