US graphite demand projected to surge more than 600% by 2034; Fastmarkets introduces regional price benchmark

LONDON, Oct. 3, 2024 /PRNewswire/ — Fastmarkets, a leading price-reporting agency (PRA) renowned for its cross-commodity market analysis and price data, is proud to announce the launch of a price assessment for US graphite flake. This new pricing benchmark aims to provide greater transparency and reliability for battery manufacturers, graphite producers and investors.

The timing of this price launch aligns with recent shifts in the global regulatory landscape and burgeoning demand for battery-grade materials. Graphite is a crucial raw material in the anode of lithium-iron phosphate (LFP) and nickel-cobalt-manganese (NCM) batteries.

Interest in regional graphite prices has spiked following the implementation of China’s export controls on graphite as well as the US Inflation Reduction Act (IRA) and updated Section 301 tariffs. These last two regulatory changes reflect the US government’s ambition to establish a more independent graphite supply chain, which Fastmarkets anticipates in turn to create a distinct market in terms of pricing.

US graphite demand is set to rise by more than 600% to almost 700,000 tonnes by 2034, according to Fastmarkets principal analyst Amy Bennett.

“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,” Bennett said. “The combination of incredible growth and the impact of the IRA and Section 301 tariffs will by necessity prompt the development of a US pricing premium – Fastmarkets has the expertise to deliver this new price to the market.”

Fastmarkets is committed to bringing transparency to commodity markets that support the transition to a low-carbon economy. This new graphite price is tailored to meet the needs of the energy transition, focusing on battery-grade graphite. It will serve as a valuable tool for domestic graphite producers and consumers, as well as the broader battery supply chain. This aligns with Fastmarkets’ commitment to supporting the growing interest in sustainable and efficient energy solutions.

“The launch of this US graphite flake price assessment marks a significant step forward for the industry, providing much-needed transparency and a reliable benchmark for market participants and potential investors,” said Grace Asenov, Fastmarkets’ base and energy metals editor for the Americas. “This new price complements existing benchmarks in Europe and Asia, providing a comprehensive view of the global graphite market.”

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ABOUT FASTMARKETS

Fastmarkets is an industry-leading PRA and information provider for the agriculture, forest products, metals and energy transition commodities’ markets. Fastmarkets serves its customers with commodity benchmark prices and assessments, forecasts, analytics, insights, news and events. Its data is critical for customers seeking to understand and predict dynamic, sometimes opaque markets, enabling trading and risk management.

Fastmarkets is a global business with a history dating from 1865 and is built on trust and deep market expertise. It has more than 650 employees spread across several global locations including the UK, US, China, Singapore, Brazil, Bulgaria, Belgium, Ukraine and Finland.

Fastmarkets is a privately held UK-registered company owned by its shareholders and Astorg, a European private equity firm.

SOURCE Fastmarkets