Study: Growing Demand for Graphite to Boost Cost of EAF Electrodes

Worldwide demand for graphite is forecast to grow at a strong annual rate of 5-7 percent through 2027. U.S. minimills rely on graphite for the electrodes used in electric arc furnaces to melt steel scrap. As China transitions to the more environmentally friendly EAF steelmaking process, and the proliferation of electric vehicles calls for more lithium-ion batteries, competition for graphite could raise the price of electrodes significantly for U.S. steel mills.

Graphite demand is about to enter a period of rapid growth and price escalation, says London-based Roskill Information Services, in its recent report Natural and Synthetic Graphite: Global Industry, Markets and Outlook to 2027. Consumption of graphite was previously led by steel market applications, but it will be surpassed by demand for natural flake graphite and synthetic graphite used in lithium-ion battery production, Roskill predicts. By 2027, consumption of graphite in battery applications could be up to 10 times higher than the current level, depending on the uptake of electric vehicles and other lithium-ion battery applications.