Orbia Disrupts Mining Supply Chain With Recycling Tech

China controls 95% of the world's natural and synthetic graphite supply, according to Orbia. This concentration creates supply chain vulnerabilities for the battery sector.

Natural graphite mining requires extensive processing that generates substantial CO₂ emissions. Orbia's Fluor and Energy Materials (FEM) business has secured a £1.4m (US$1.87m) grant from the UK Government to establish the country's first graphite recycling project, which could reduce reliance on mined graphite.

Preliminary assessments by Orbia's sustainability team indicate that its recycled graphite could generate up to two times less CO₂ than mined natural graphite. The recycled material could also produce up to four times less CO₂ than synthetic graphite.

The environmental footprint of natural graphite extends beyond mining. According to Orbia, the material requires grading and extensive processing after extraction, while synthetic graphite is produced via high temperature graphitisation at up to 3,000°C, consuming substantial energy.

Reducing dependence on overseas supply

The UK project forms part of the country's £4bn (US$5.4bn) DRIVE35 programme, delivered by the Department for Business and Trade in partnership with the Advanced Propulsion Centre UK and Innovate UK. The partnership aims to accelerate research and development in the automotive industry and increase scale for a low or zero emission future.

By 2035, global graphite demand is projected to outpace supply by roughly 2.3m tonnes. The UK's investment aims to reduce reliance on overseas supply chains, particularly from regions like China.

"This investment marks a significant milestone in enabling a huge step toward building a domestic, circular supply chain for battery materials and supporting the UK's transition to a more sustainable, zero-emission future," says John Jaddou, Global Director, New Business Development at Orbia FEM.

"It also lays the foundation for the creation of highly skilled jobs that are critical to electrified mobility, circularity and long‑term decarbonisation."

John adds that Orbia is uniquely positioned to demonstrate that graphite recovery can be both technically robust and commercially feasible. The company brings decades of industrial and process expertise in complex fluorine-based chemistries at scale.

Recovering graphite from black mass

Lithium-ion batteries contain more graphite than lithium, according to Orbia. Graphite is used in the anode to store lithium ions and makes up about 30% of a lithium-ion battery's weight.

According to Orbia, most graphite from end-of-life batteries is sent to landfill or incinerated, resulting in material waste and CO₂ emissions. By 2030, it is estimated that more than 236,000 tonnes of graphite could be available for a circular life annually, generating a US$2.6bn market opportunity.

Orbia's FEM business has developed a proprietary technology to recover, purify and upcycle graphite from domestic feedstocks. The process focuses on graphite extracted from black mass residue, the powder generated after end-of-life batteries are shredded and valuable metals such as lithium, nickel and cobalt are removed.

Using a multi-step purification method that incorporates hydrofluoric acid, Orbia refines the recovered graphite to meet physical and chemical standards required for battery anodes. The result is ultra-high-purity upcycled graphite that performs comparably to virgin material.

Commercial viability and scale

Traditionally, graphite recycling has been uneconomical because graphite carries a lower market value than other battery materials like lithium, nickel and cobalt. Orbia's innovation changes that dynamic by enabling recycled graphite to compete cost-effectively with virgin graphite while also offering a lower carbon footprint.

The UK project is set to operate at kilogram-scale batches. This could provide a foundation for a future large-scale industrial plant.

Orbia's multi-phase project is in the planning stage and is expected to begin early 2026. Installation and outputs are expected in late 2026.

The company brings established UK-based research and development capabilities through its Energy Materials Business Unit, with a dedicated technology centre in Chester. The site plays a central role in advancing battery materials innovation, including electrolyte and solvent system development, Li-ion battery prototyping and testing and inorganic materials research.

Closing the loop with OEMs

To support large-scale commercialisation, Orbia is building a fully circular supply model in collaboration with OEMs and battery cell manufacturers. Through these partnerships, the company aims to return upcycled graphite directly into customers' supply chains for use in batteries and other automotive applications.

With rising EV demand, renewable energy and storage components and increased digitalisation, graphite is essential for the energy transition. The UK project is set to support the domestic battery supply chain and advance the circular economy.

"The projects announced demonstrate the UK's determination to lead the shift to zero-emission mobility," says Ian Constance, CEO at Advanced Propulsion Centre UK.

"By facilitating the UK Government's DRIVE35 grants, we are turning world-class innovation into industrial capability."

Ian adds that the partnership is backing manufacturers, empowering SMEs and strengthening the UK's sovereign supply chain. "This multi-million-pound support package is more than an investment in technology; it is an investment in the people, skills and companies that will define the future of clean transport."

The recycling centre could help OEMs and battery manufacturers advance their net zero goals while reducing dependence on mining operations concentrated in a single region.