Needle Coke Market Size
Market Overview
| Study Period | 2019 - 2030 |
| Market Volume (2025) | 2.22 Million metric tons |
| Market Volume (2030) | 4.49 Million metric tons |
| Growth Rate (2025 - 2030) | 15.11% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Needle Coke Market Analysis
The Needle Coke Market size is estimated at 2.22 million metric tons in 2025, and is expected to reach 4.49 million metric tons by 2030, at a CAGR of 15.11% during the forecast period (2025-2030).
The needle coke industry is experiencing significant transformation driven by the rapid evolution of the electric vehicle (EV) sector and energy storage solutions. Global EV sales demonstrated remarkable growth, reaching 10.5 million units in 2022, representing a 55% increase compared to the previous year. This surge in EV adoption has catalyzed substantial investments in battery manufacturing infrastructure, with major automotive manufacturers and battery producers forming strategic partnerships to establish regional production capabilities. The electronics and IT industry's production value reached USD 3,436.8 billion in 2022, further supporting the demand for high-quality needle coke in various applications.
The manufacturing landscape is witnessing unprecedented expansion through strategic collaborations and facility establishments. In 2023, Ford partnered with CATL to construct a USD 3.5 billion joint venture facility for manufacturing lithium-iron phosphate batteries, while Honda and LG Energy Solution announced plans to establish a new manufacturing facility for lithium-ion batteries in Ohio. These developments reflect the industry's commitment to building robust regional supply chains and reducing dependency on imports. Additionally, Taqat Development Company's announcement to establish a 75,000-ton-per-annum needle coke complex in Rabigh demonstrates the industry's focus on expanding production capabilities.
The battery manufacturing sector has shown remarkable progress in technological advancement and capacity expansion. China's battery industry demonstrated exceptional growth, with new additions in NEVs Li-ion battery capacity totaling 183.8 GWh in 2022, marking a substantial 130.2% increase from the previous year. This growth is complemented by significant developments in other regions, such as India's milestone achievement with Log9's establishment of the country's first indigenous Li-ion battery cell production facility in 2023, marking a significant step toward regional manufacturing capabilities.
The industry is experiencing a notable shift toward sustainable practices and technological innovation in battery production. Global battery usage witnessed a significant uptick, increasing by 72% from 2021 to 2022, driven by growing demand from electric vehicles and energy storage applications. This trend has prompted manufacturers to invest in research and development of advanced battery technologies, focusing on improving energy density, reducing costs, and enhancing sustainability. The integration of needle coke in these advanced applications continues to evolve, with manufacturers exploring new formulations and production techniques to meet the increasingly stringent requirements of modern battery systems. The needle coke price trend is also being closely monitored as it impacts the cost dynamics of battery production.
Needle Coke Market Trends
Increasing Investments in EAF Steel Manufacturing
The steel industry is witnessing substantial investments in Electric Arc Furnace (EAF) technology as companies aim to reduce carbon emissions and improve operational efficiency. In November 2023, JFE Steel announced plans to construct a large-scale electric arc furnace at its Kurashiki plant, scheduled for completion by 2027, with the potential to reduce annual emissions by 2.6 million tons. This strategic investment demonstrates the industry's commitment to sustainable steel production through EAF technology. Similarly, HEG Limited expanded its graphite electrode capacity to 100 kilotons per annum in November 2023, with a significant investment of USD 143.741 million, positioning itself as the third-largest graphite electrode company in the Western world.
The growing adoption of EAF technology is driving increased demand for graphite electrodes, which are essential components in the electric arc furnace steelmaking process. These electrodes can withstand extremely high temperatures of up to 1,600°C and possess crucial properties such as high thermal conductivity and low electrical resistance, making them indispensable for melting iron scrap. The manufacturing process of these electrodes is complex and time-intensive, requiring up to six months for processing, including baking and rebaking stages to convert coke into graphite. This sophisticated production process, combined with increasing EAF installations, is creating a robust demand for needle coke, the primary raw material used in graphite electrode manufacturing. The needle coke price trend is a critical factor for manufacturers as it influences production costs and market dynamics.
Government Policies to Increase Scrap Steel Consumption
Governments worldwide are implementing supportive policies to promote the use of steel scrap in manufacturing processes, particularly through EAF technology. The Indian government has taken significant steps by eliminating customs duty on scrap imports, directly benefiting EAF steel manufacturers and encouraging the transition to more sustainable production methods. These policy initiatives are complemented by broader environmental regulations that favor electric arc furnace technology over traditional blast furnaces, as EAFs rely primarily on steel scrap and electricity, making them more environmentally sustainable.
Chinese authorities are actively promoting Electric Arc Furnace technology as a cornerstone of their environmental strategy in the steel industry. The government's focus on developing eco-friendly means of steel production has led to supportive national policies that encourage the adoption of EAF technology. This transition is particularly significant as it aligns with the country's broader environmental goals and sustainable development initiatives. The policy framework not only supports the increased use of steel scrap but also creates a favorable environment for investments in EAF technology, which in turn drives the demand for graphite electrodes and, consequently, needle coke. This policy-driven transformation is reshaping the industry landscape, with graphite electrode manufacturers expanding their production capabilities to meet the growing demand from EAF operators. Additionally, the use of premium coke and specialty coke in the production process is gaining attention, further influencing market trends.
Segment Analysis: Product Type
Petroleum-Based Segment in Needle Coke Market
The petroleum needle coke segment dominates the global needle coke market, commanding approximately 84% of the total market share in 2024. This segment's prominence is attributed to the easier availability and processing of petroleum-based raw materials compared to other alternatives. The segment has maintained its leadership position due to its extensive application in manufacturing graphite electrodes and lithium-ion battery anodes. Petroleum needle coke is produced from either petroleum oil (light/heavy crudes), petroleum residue products, or petroleum by-products during petroleum oil refining. The segment is experiencing robust growth with an expected growth rate of around 15% from 2024 to 2029, driven by increasing investments in EAF steel manufacturing and the rapidly expanding lithium-ion battery industry. The growth is further supported by the rising adoption of electric vehicles globally and the subsequent demand for high-quality needle coke in battery production.
Coal-Tar Pitch-Based Segment in Needle Coke Market
The coal-tar pitch-based segment represents a smaller but significant portion of the needle coke market. This segment offers unique advantages such as excellent physical properties, including a low coefficient of thermal expansion, low electric resistance, and reduced spalling and breakage compared to petroleum-based alternatives. Coal-based needle coke is derived from coal tar pitch, a by-product of coking metallurgical coal for blast-furnace steelmaking. The segment faces certain challenges in production, including the need to remove primary quinoline insoluble matter and address the stability of nitrogen heterocyclics in the coke matrix. Despite these challenges, the segment maintains its importance in specific high-performance applications where its superior physical properties are essential.
Segment Analysis: Application
Graphite Electrodes Segment in Needle Coke Market
The graphite electrodes segment continues to dominate the global needle coke market, commanding approximately 66% of the total market share in 2024. This significant market position is primarily driven by the increasing adoption of electric arc furnace (EAF) technology in steel manufacturing worldwide. The segment's dominance is further strengthened by major steel producers investing in new EAF facilities and expanding their existing capacities. For instance, ArcelorMittal's investment in new EAF facilities and Liberty Steel's construction of electric arc furnaces demonstrate the growing preference for this technology. Additionally, various government initiatives promoting the use of EAF technology for reducing carbon emissions in steel production have contributed to the segment's market leadership. The segment's robust performance is also supported by the superior properties of needle coke-based graphite electrodes, including high thermal conductivity, excellent resistance to heat and impact, and low electrical resistance, making them essential for steel manufacturing applications.
Lithium-Ion Batteries Segment in Needle Coke Market
The lithium-ion batteries segment is emerging as the fastest-growing application in the needle coke market, projected to grow at approximately 22% during 2024-2029. This remarkable growth is primarily fueled by the exponential rise in electric vehicle adoption globally and increasing investments in battery manufacturing facilities. Major automotive manufacturers and battery producers are establishing new production facilities and expanding existing ones to meet the surging demand. For example, CATL's significant investment in battery production expansion projects and Ford's collaboration for Li-iron phosphate battery manufacturing demonstrate the segment's growth potential. The segment's growth is further accelerated by government initiatives supporting electric vehicle adoption and battery manufacturing, such as the United States' National Blueprint for Lithium Batteries 2021-2030 and various European countries' investments in battery production facilities. The increasing focus on energy storage solutions and the growing consumer electronics market are also contributing to the segment's rapid expansion.
Remaining Segments in Application Segmentation
The other applications segment in the needle coke market, while smaller in market share, plays a crucial role in diverse industrial applications. This segment primarily includes specialty coke products used in semiconductor manufacturing equipment, solar power generation, and nuclear power core materials. The growing technological advancements in semiconductor manufacturing and increasing investments in solar power infrastructure are driving demand in this segment. The segment also serves various advanced manufacturing applications, particularly in research fields and nuclear plants, where graphitized coke materials are essential for separating fusion and fission materials from coolants. The expansion of semiconductor manufacturing facilities and growing investments in renewable energy infrastructure continue to create new opportunities for needle coke applications in these specialized sectors.
Needle Coke Market Geography Segment Analysis
Needle Coke Market in Asia-Pacific
The Asia-Pacific region dominates the global needle coke market, driven by significant investments in electric arc furnace (EAF) steel manufacturing and rapid growth in lithium-ion battery production. China leads the regional needle coke market with extensive manufacturing capabilities, followed by Japan, India, and South Korea. The region's growth is supported by government initiatives promoting electric vehicle adoption, increasing steel production through EAF technology, and expanding battery manufacturing facilities. Countries across the region are investing heavily in research and development while focusing on technological advancements in both steel and battery sectors.
Needle Coke Market in China
China maintains its position as the largest needle coke market in Asia-Pacific, commanding approximately 78% of the regional market share. The country's dominance is attributed to its extensive steel manufacturing infrastructure and rapidly growing electric vehicle battery sector. China's needle coke industry benefits from strong government support through policies like the 'Fourteenth Five-Year Plan for Industrial Green Development' and the 'Efficient Resource Utilisation Promotion Project'. The country's leadership in graphite electrode production and its position as the world's largest steel producer through EAF technology continue to drive market growth. Additionally, China's near monopoly in the lithium-ion batteries market strengthens its position in the needle coke industry.
Growth Dynamics in Chinese Needle Coke Market
China is projected to maintain the highest growth rate in the Asia-Pacific region, with an expected CAGR of approximately 15% from 2024-2029. This exceptional growth is driven by aggressive expansion in the electric vehicle battery sector and increasing adoption of EAF technology in steel production. The country's battery manufacturing sector is witnessing unprecedented growth with major players like CATL expanding their production capacities. The government's commitment to achieving carbon neutrality and promoting sustainable manufacturing practices further supports this growth trajectory. China's strategic initiatives in both the steel and battery sectors continue to create robust demand for needle coke.
Needle Coke Market in North America
The North American needle coke market demonstrates strong growth potential, characterized by technological advancement and an increasing focus on sustainable manufacturing practices. The United States dominates the regional landscape, followed by Canada and Mexico. The region's market is primarily driven by the expanding electric vehicle sector and the growing adoption of EAF technology in steel production. Government initiatives supporting domestic battery production and steel industry modernization are creating favorable conditions for market growth across all three countries.
Needle Coke Market in United States
The United States maintains its position as the largest needle coke market in North America, holding approximately 91% of the regional market share. The country's market leadership is supported by its advanced manufacturing capabilities and strong presence in both steel and battery sectors. The implementation of the National Blueprint for Lithium Batteries 2021-2030 and various government initiatives promoting domestic battery production has strengthened the market position. The country's extensive EAF steel production infrastructure and growing investments in battery manufacturing facilities continue to drive market growth.
Growth Dynamics in United States Needle Coke Market
The United States is expected to maintain the highest growth rate in North America, with a projected CAGR of approximately 10% from 2024-2029. This growth is primarily driven by increasing investments in electric vehicle battery manufacturing and the expansion of EAF steel production facilities. The country's focus on developing domestic battery supply chains and reducing dependency on imports is creating new opportunities for needle coke manufacturers. The implementation of the Inflation Reduction Act and other supportive policies is expected to further accelerate market growth.
Needle Coke Market in Europe
The European needle coke market is characterized by a strong focus on sustainable manufacturing and technological innovation. Germany leads the market, followed by Italy, France, and the United Kingdom. The region's transition towards electric vehicles and green steel production is driving market growth. The European Union's emphasis on developing domestic battery production capabilities and reducing carbon emissions in the steel industry is creating new opportunities for market expansion.
Needle Coke Market in Germany
Germany maintains its position as the largest needle coke market in Europe, driven by its robust automotive industry and strong presence in steel manufacturing. The country's leadership in industrial technology and commitment to sustainable manufacturing practices have established it as a key market. Germany's strategic focus on electric vehicle production and battery manufacturing, coupled with its advanced steel industry, continues to drive market growth.
Growth Dynamics in German Needle Coke Market
Germany demonstrates the strongest growth potential in the European region, supported by its aggressive expansion in electric vehicle battery production and steel industry modernization. The country's commitment to reducing carbon emissions and promoting sustainable manufacturing practices is driving the adoption of EAF technology. Significant investments in battery manufacturing facilities and the development of green steel production capabilities are creating sustained demand for needle coke.
Needle Coke Market in South America
The South American needle coke market is developing steadily, with Brazil emerging as both the largest and fastest-growing market in the region, followed by Argentina. The region's market growth is primarily driven by the modernization of steel manufacturing facilities and emerging opportunities in the electric vehicle battery sector. While the market currently represents a smaller share of global consumption, increasing investments in EAF technology and a growing focus on electric vehicle production are creating new growth opportunities.
Needle Coke Market in Middle East & Africa
The Middle East & Africa needle coke market is experiencing steady growth, with Saudi Arabia emerging as both the largest and fastest-growing market, followed by South Africa. The region's market is primarily driven by investments in steel manufacturing infrastructure and a growing focus on diversifying industrial capabilities. Government initiatives promoting industrial development and increasing adoption of EAF technology in steel production are creating new opportunities for market expansion.
Needle Coke Industry Overview
Top Companies in Needle Coke Market
The needle coke market is led by established players like Phillips 66 Company, Liaoning Baolai Bioenergy, China National Petroleum Corporation (CNPC), and Shandong Yida Rongtong Trading Co., who have built strong manufacturing capabilities and distribution networks. Companies are focusing on technological advancements in production processes to improve product quality and meet the growing demand from electric vehicle battery and steel manufacturing sectors. Strategic expansions through capacity additions, particularly in the Chinese market, have reshaped market dynamics and competitive positions. Players are increasingly pursuing vertical integration strategies to secure raw material supply and optimize costs, while also investing in R&D for developing specialized grades of needle coke. The industry has witnessed a shift toward long-term agreements with key consumers to ensure steady supply chains and maintain market positions.
Consolidated Market with Strong Regional Players
The global needle coke market exhibits a highly consolidated structure outside China, dominated by multinational corporations with integrated operations across the value chain. These established players leverage their technological expertise, extensive distribution networks, and long-standing relationships with end-users to maintain their market positions. The Chinese market segment presents a different dynamic, with numerous domestic manufacturers actively expanding their production capacities and gradually increasing their global market presence. The industry has witnessed strategic mergers and acquisitions, such as the absorption-type merger between Nippon Steel Chemical & Material Co. Ltd and C-Chem, indicating a trend toward consolidation to achieve operational synergies and market expansion.
The competitive landscape is characterized by a mix of specialized needle coke manufacturers and diversified chemical conglomerates that have integrated needle coke production into their broader portfolio. Major players are continuously investing in capacity expansions and technological upgrades to meet the increasing demand from growing end-use industries. The market has seen limited new entrants due to high capital requirements, technical expertise needs, and the importance of established supply chain relationships, contributing to the maintained positions of incumbent players.
Innovation and Sustainability Drive Future Success
Success in the needle coke market increasingly depends on companies' ability to develop high-quality products while maintaining cost competitiveness through operational efficiency. Manufacturers are focusing on developing specialized grades of needle coke to meet the specific requirements of emerging applications in electric vehicle batteries and advanced carbon materials. The ability to secure stable raw material supply through vertical integration or strategic partnerships has become crucial for maintaining competitive advantage. Companies are also investing in sustainable production processes and environmental compliance to address growing regulatory pressures and changing customer preferences.
Market participants must navigate the challenges of end-user concentration in the steel and battery industries while developing strategies to mitigate substitution risks from alternative materials. Future success will depend on building strong technical capabilities, establishing efficient distribution networks, and maintaining close relationships with key customers. Companies entering or expanding in the market need to focus on differentiation through product quality, technical support, and service reliability. The increasing focus on environmental regulations and sustainability goals will require continued investment in cleaner production technologies and sustainable practices, potentially creating new opportunities for innovation and market differentiation. The development of premium coke as a specialized product could also provide a competitive edge in meeting specific industry needs.
Needle Coke Market Leaders
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Phillips 66 Company
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China National Petroleum Corporation (CNPC)
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Shandong Yida Rongtong Trading Co.
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Shandong Jing Yang Technology Co. Ltd
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Mitsubishi Chemical Corporation
- *Disclaimer: Major Players sorted in no particular order
Needle Coke Market News
• January 2024: CNPC hoisted and docked the top tower of the 400,000 tons/year of needle coke at the construction site in Jinzhou, China. The project is likely to be completed in the coming years.
• December 2022: Gazprom Neft announced its plans to launch a project to produce needle coke in its Omsk refinery, which will be utilized in manufacturing Li-ion batteries and graphite electrodes. This project is expected to be completed by 2024.
• December 2022: POSCO Chemical announced the agreement with Ultium Cells LLC to supply graphite anode material for the expansion of EV battery cells in the United States. In POSCO Chemical, the entire product was sourced from needle coke.
Needle Coke Industry Segmentation
Needle coke is a high-quality carbon raw material produced from coal tar and petroleum. It is generally formed as highly crystalline graphene-like carbons exhibiting long-range microstructural order with few impurities and a low coefficient of thermal expansion. It is primarily used for the manufacturing of graphite electrodes and lithium-ion batteries.
The needle coke market is segmented by product type, application, and geography. By type, it is divided into petroleum-based and coal-tar pitch-based. By application, it is divided into graphite electrodes, lithium-ion batteries, and other applications. The report also covers the market sizes and forecasts for the needle coke market in 15 countries across major regions. For each segment, the market sizing and forecasts were made on the basis of volume (kilotons).
| Product Type | Petroleum Based | ||
| Coal-tar Pitch Based | |||
| Application | Graphite Electrodes | ||
| Lithium-ion Batteries | |||
| Other Applications | |||
| Geography | Asia-Pacific | China | |
| India | |||
| Japan | |||
| South Korea | |||
| Rest of Asia-Pacific | |||
| North America | United States | ||
| Canada | |||
| Mexico | |||
| Europe | Germany | ||
| United Kingdom | |||
| Italy | |||
| France | |||
| Rest of Europe | |||
| South America | Brazil | ||
| Argentina | |||
| Rest of South America | |||
| Middle East and Africa | Saudi Arabia | ||
| South Africa | |||
| Rest of Middle East and Africa | |||
| Petroleum Based |
| Coal-tar Pitch Based |
| Graphite Electrodes |
| Lithium-ion Batteries |
| Other Applications |
| Asia-Pacific | China |
| India | |
| Japan | |
| South Korea | |
| Rest of Asia-Pacific | |
| North America | United States |
| Canada | |
| Mexico | |
| Europe | Germany |
| United Kingdom | |
| Italy | |
| France | |
| Rest of Europe | |
| South America | Brazil |
| Argentina | |
| Rest of South America | |
| Middle East and Africa | Saudi Arabia |
| South Africa | |
| Rest of Middle East and Africa |
Needle Coke Market Research Faqs
How big is the Needle Coke Market?
The Needle Coke Market size is expected to reach 2.22 million metric tons in 2025 and grow at a CAGR of 15.11% to reach 4.49 million metric tons by 2030.
What is the current Needle Coke Market size?
In 2025, the Needle Coke Market size is expected to reach 2.22 million metric tons.
Who are the key players in Needle Coke Market?
Phillips 66 Company, China National Petroleum Corporation (CNPC), Shandong Yida Rongtong Trading Co., Shandong Jing Yang Technology Co. Ltd and Mitsubishi Chemical Corporation are the major companies operating in the Needle Coke Market.
Which is the fastest growing region in Needle Coke Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2025-2030).
Which region has the biggest share in Needle Coke Market?
In 2025, the Asia Pacific accounts for the largest market share in Needle Coke Market.
What years does this Needle Coke Market cover, and what was the market size in 2024?
In 2024, the Needle Coke Market size was estimated at 1.88 million metric tons. The report covers the Needle Coke Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Needle Coke Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
