Graphite

Graphite is a critical component of lithium-ion batteries and electric vehicle production will drive increased demand for the material.

Graphite

Graphite has multiple applications, particularly in refractories where it is used in steelmaking. However, future demand for graphite is likely to be driven by electric vehicle manufacturers as the material is a key component of lithium-ion batteries. China is the largest graphite producer, accounting for about 78% of total global graphite production in 2024, up from 65% in 2022, pointing to increasing supply chain concentration. Within the overall supply chain, China is home to nearly 100% of graphite refining, and moved in late 2024 to tighten export controls in light of graphite’s importance in electric vehicle production and dual-use applications. China and Brazil have the largest known reserves at an estimated 81,000,000 and 74,000,000 metric tonnes respectively.

While graphite is used in the clean energy transition, it has been linked to several ESG issues. These included air and water pollution from graphite mining in China and risks of forced labour, as graphite production takes place in countries which have high risks of forced labour.

Main uses and applications

Natural graphite is a form of elemental carbon, which is crystalline, opaque and soft. It exhibits metal and non-metal attributes. Metallic attributes include thermal and electrical conductivity, while non-metallic attributes include inertness, high thermal resistance and lubricity. These physical and chemical attributes makes it difficult to substitute graphite with other materials in industrial applications.

Natural graphite is used for refractories, batteries, foundries and recarburising. Graphite accounts for 90% of the anode materials used in lithium-ion batteries, widely known for being used in electric vehicles. It is increasingly being used in other renewable energy technologies such as large-scale fuel cells, solar cells, nuclear reactors, and rechargeable batteries.