The natural graphite industry is an essential part of the broader materials and energy sector, driven by its applications in a variety of industries such as electric vehicles (EVs), batteries, metallurgy, lubricants, and refractories.

Supply and Demand Trends

• Supply: The global supply of natural graphite primarily comes from countries like China, Brazil, and Mozambique. China dominates production, accounting for more than 60% of global output, although some other nations are ramping up production to diversify supply chains.

• Demand: The rising demand for graphite is closely tied to the electric vehicle (EV) revolution and the growth of lithium-ion batteries. Graphite is a critical material in the anode of these batteries, with EVs and energy storage solutions driving consumption. Beyond EVs, traditional sectors like steel production and lubricants still consume large quantities of natural graphite

The natural graphite industry is poised for substantial growth, particularly driven by the electric vehicle and energy storage markets. In the next 5 to 10 years, demand for high-purity natural flake graphite is expected to increase significantly, largely due to its critical role in lithium-ion battery production. The global shift toward clean energy and sustainable technology will also keep graphite consumption high.

However, competition from synthetic graphite and potential supply chain disruptions could impact market dynamics. Countries outside China are likely to increase their graphite mining efforts, while environmental and technological pressures may drive further innovation in extraction and processing methods.