Critical Minerals and Energy Intelligence

What is graphite

Graphite is a naturally occurring form of crystalline carbon (atomic number 6), renowned for its unique combination of high thermal stability, electrical conductivity, and lubricating properties1. It appears as a soft, gray to black mineral and is one of only two naturally occurring forms of pure carbon, the other being diamond. Graphite’s structure consists of layers of carbon atoms arranged in a hexagonal lattice, allowing the layers to slide over each other easily—this underpins its use as a lubricant and in pencils.

The name “graphite” derives from the Greek word graphein, meaning “to write,” reflecting its long-standing use in writing materials.

Today, graphite is indispensable for a wide range of industrial and technological applications, including steelmaking, batteries, refractories, lubricants, and emerging clean technologies.

Why graphite matters: strategic applications

Batteries and energy storage

• graphite is the dominant anode material in lithium-ion batteries, accounting for up to 95% of the anode composition. The rapid growth of electric vehicles (EVs) and renewable energy storage is driving unprecedented demand for both natural and synthetic graphite

• the battery sector is projected to be the fastest-growing application for graphite, with demand expected to rise by more than 1,400% between 2020 and 2050

Steelmaking

• in the steel industry, graphite is used as a carbon raiser to adjust carbon content in molten steel and as a lubricant in high-temperature processes

• the steel sector remains one of the largest consumers of graphite globally

Refractories and foundries

• graphite’s high thermal resistance makes it essential in refractories for lining furnaces, crucibles, and molds in metal production

• expanded graphite and graphite foils are used in high-performance gaskets and fire-resistant materials

Lubricants and industrial uses

• thanks to its layered structure, graphite is an effective dry lubricant for machinery operating under extreme temperatures or conditions

• it is also used in brake linings, foundry facings, and as a component in advanced composites

Emerging technologies

• graphite is increasingly used in fuel cells, lightweight composites, and as a precursor for graphene, a material with revolutionary potential in electronics and materials science

Supply and Demand Dynamics

Production concentration

• China dominates global graphite supply, followed by India and Brazil34. This concentration creates significant supply chain vulnerabilities, especially as geopolitical tensions and export controls intensify

• the US and EU have classified graphite as a critical raw material and are seeking to diversify sources, including new projects in Kazakhstan and North America

Natural vs. Synthetic Graphite

• natural graphite is mined, while synthetic graphite is produced from petroleum coke. Synthetic graphite is less exposed to Chinese supply risks but is more energy-intensive to produce

• both types are essential for battery applications, but natural graphite is currently facing a supply deficit, while synthetic graphite has experienced a temporary oversupply

Market trends

• the global graphite market is forecast to grow at a CAGR of 9.41% from US$15.90 billion in 2025 to US$24.93 billion by 2030, driven by surging demand in batteries and energy storage

• by 2050, graphite supply will need to increase nearly 500% to meet clean energy and electrification targets, requiring the development of hundreds of new mines worldwide

Mining and processing

• graphite is mined using both open-pit and underground methods, then beneficiated through crushing, grinding, flotation, and sometimes acid leaching to achieve high purity

• after concentration, graphite is classified by flake size and carbon content to suit various industrial needs

• environmental management is increasingly important, with efforts to minimize air and soil contamination during processing

Graphite’s unique properties and critical role in the global energy transition make it a linchpin for both established industries and emerging technologies. As battery demand surges and supply chain security becomes paramount, graphite’s strategic importance is set to grow sharply in the coming decades.