Supply Chain

Graphite Supply Chain: From Mine to Market

China dominates every stage of the graphite battery supply chain: mining (~77% of natural graphite), processing (~100% of spherical graphite production until recently), and coating for anode production (~97%). Natural graphite must undergo flotation, purification (to 99.95%+C), spheronization, and surface coating before use in Li-ion batteries. This processing chain adds 5-10x value to raw concentrate. Synthetic graphite (made from petroleum coke) is an alternative anode feedstock but is more expensive and energy-intensive. Chinas December 2023 export controls on graphite products directly targeted the battery supply chain, prompting emergency Western investment in graphite processing capability. Syrah Resources (Mozambique mine + US Vidalia processing) and Nouveau Monde Graphite (Quebec mine + processing) are the most advanced non-Chinese integrated anode material projects.

Production Geography

Global Graphite production is led by China, which accounts for approximately 77% of world output, followed by Mozambique. The full list of major producing nations includes China, Mozambique, Brazil, Madagascar, India. This geographic concentration means that disruptions in key producing regions can have outsized impacts on global supply and pricing.

Extraction Methods

Graphite is extracted using the following primary methods:

• Open-pit mining
• Underground mining

Processing and Intermediate Products

Graphite is primarily sourced from Flake graphite (crystalline), Amorphous graphite, Vein (lump) graphite. After extraction, the raw material undergoes multiple processing steps including beneficiation, chemical treatment, and refining to reach the purity levels required by downstream industries. Typical ore grades range from 3-15% C (flake graphite).

Key Supply Chain Participants

The Graphite supply chain involves these major companies:

Supply Chain Vulnerabilities

Key vulnerabilities in the Graphite supply chain include concentration of 77% of production in China, limited processing capacity diversification, and long lead times for new mining projects. The high supply risk rating reflects the severity of these concentration risks and the difficulty of rapidly establishing alternative supply sources.