Needle coke is a specialty petroleum pitch coke that is processed into highly crystalline and pure carbon materials with needle-like structures. It is used primarily in the production of graphite electrodes for electric arc furnaces in steelmaking. Due to its high electrical conductivity and strength, needle coke is also increasingly being used as an anode material in lithium-ion batteries for electric vehicles and energy storage systems.
The global needle coke market is estimated to be valued at US$4.2 billion in 2024 and is expected to exhibit a CAGR of 1.2% over the forecast period 2024 to 2031.
Needle coke Market Size possesses characteristics that make it ideal for producing the graphite anodes used in lithium-ion batteries. Its high purity, low impurities, and well-aligned crystalline structure allows for maximum conductivity. With the rising demand for electric vehicles and efforts to adopt renewable energy sources, the lithium-ion battery market is growing rapidly. Manufacturers are investing in expanding production capacities and developing advanced battery chemistries that require high-quality coke. Major anode producers such as Tokai Carbon, GrafTech International, and Phillips 66 are increasing their needle coke output to meet this growing market need.
Key Takeaways
Key players operating in the needle coke market are Tokai Carbon, GrafTech International, Phillips 66, Indian Oil Corporation Ltd., and Mitsubishi Chemical Corporation.
The increasing sales of electric vehicles worldwide is fueling demand for lithium-ion batteries. Needle coke is a critical raw material in the manufacture of high-performance lithium-ion batteries.
Major needle coke producers are investing in expanding production capacities across regions. This will help them cater to the growing global demand, especially from the battery and steel industries in Asia.
Market Key Trends
One of the key trends in the Needle Coke Companies is the shift towards developing synthetic versions through fluidized bed reactors. Companies are researching techniques to produce needle coke that has similar purity and crystalline quality through chemical vapor deposition methods. This could help eliminate dependencies on petroleum feedstock and minimize environmental footprint.
Porter's Analysis
Threat of new entrants: High capital requirement for setting up new plants acts as barrier for new entrants. Bargaining power of buyers: Large buyers like steel producers have significant bargaining power over needle coke suppliers. Barganing power of suppliers: Few global players control needle coke production leading to their strong bargaining power. Threat of new substitutes: Limited substitutes are available for needle coke in graphite electrode and lithium ion battery anode production. Competitive rivalry: Intense competition exists among established players to gain additional market share through capacity expansion.
Geographical Regions
China is currently the largest consumer of needle coke in the world due to strong domestic demand from its massive steel and lithium-ion battery industries. The United States is also a major geographical region concentrated with needle coke production facilities and consumption.
Fastest growing region
Asia Pacific region excluding China is expected to witness the highest growth in needle coke consumption over the forecast period driven by increasing electric vehicle sales and massive infrastructure development projects underway in various countries like India. Countries are aggressively promoting domestic manufacturing of lithium-ion batteries which will further boost regional demand.
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)