US Graphite Demand Expected to Soar by Over 600% by 2034; Fastmarkets Introduces Regional Price Benchmark

LONDON, Oct. 3, 2024 — Fastmarkets, a leading price-reporting agency (PRA) known for its cross-commodity market analysis and price data, has introduced a new price assessment for US graphite flake. This benchmark aims to provide transparency and reliability for battery manufacturers, graphite producers, and investors.

(PRNewsfoto/Fastmarkets)

The timing of this price launch coincides with shifts in global regulations and growing demand for battery-grade materials. Graphite is a key ingredient in the anode of lithium-iron phosphate (LFP) and nickel-cobalt-manganese (NCM) batteries.

Interest in regional graphite prices has increased due to China’s export controls on graphite and the US Inflation Reduction Act (IRA) along with updated Section 301 tariffs. These recent US regulatory changes indicate the government’s push for a more independent graphite supply chain, which Fastmarkets expects to create a distinct pricing market.

US graphite demand is projected to increase by over 600% to nearly 700,000 tonnes by 2034, according to Fastmarkets principal analyst Amy Bennett.

“This is a significant moment for the US graphite sector, as the US strives to reduce its dependence on China and become more self-sufficient in graphite, particularly for battery-grade materials,” Bennett said. “The combination of rapid growth and the impact of the IRA and Section 301 tariffs will necessitate the development of a US pricing premium – Fastmarkets has the expertise to deliver this new price to the market.”

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

“The launch of this US graphite flake price assessment is a major 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

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