Focus on: Graphite, a Crucial Clean Energy Mineral

Graphite is a crystalline form of carbon, and occurs naturally as a mineral in metamorphic rocks. It can also be produced synthetically, for industrial applications.

The global graphite market is expanding, driven by increasing demand from the electric vehicle and renewable energy sectors. This growth has prompted several countries to explore new graphite deposits and expand their production capabilities to meet future demand projections.

Here, we explore how this vital mineral is mined, the major companies and countries behind its extraction, and how graphite's unique properties make it invaluable  to multiple industries.   

How is graphite mined?

Graphite mining operations vary based on the deposit type and location. Open-pit mining is the favoured method of extraction, particularly for deposits near the surface, with underground mining used for deeper deposits. 

Once extracted, the ore undergoes processing, involving crushing, grinding, and flotation, which uses the hydrophobic nature of graphite to separate it from other minerals.

The final stages of production include drying and screening and the resulting graphite is then graded based on its carbon content and flake size.

Which countries are major graphite producers? 

China dominates global graphite production, with an average annual production of around 820,000 tonnes – about 79% of the world's total output. 

Brazil is the second-largest producer, with an annual production of 68,000 tonnes. Mozambique ranks third, contributing 30,000 tonnes to the global supply.

Madagascar and Russia complete the top five producers, with outputs of 28,000 and 27,000 tonnes respectively. Canada, which has been investing in its graphite industry, produced 22,000 tonnes in the same year.

India and Ukraine each contributed 20,000 tonnes to the global market, while Germany produced 15,000 tonnes. Norway rounded out the top ten with an annual production of 10,000 tonnes.

Which companies dominate graphite mining?

The graphite mining industry is dominated by several key players, with Chinese companies holding significant market share. Aoyu Graphite Group, headquartered in Heilongjiang Province, is one of China's largest graphite producers. Another major Chinese organisation is BTR New Energy Materials, which supplies graphite for lithium-ion batteries.

Outside China, Syrah Resources, an Australian company, operates the Balama mine in Mozambique, one of the world's largest graphite mines. Canada's Northern Graphite Corporation, meanwhile, has been expanding its operations, including the acquisition of producing mines in Namibia and Brazil.

Graphite India Ltd and HEG Ltd are prominent players in the Indian market, with significant production capacities. In North America, Nouveau Monde Graphite is developing a mine in Quebec, aiming to become a key supplier to the Western market.

Japan's Tokai Carbon and SEC Carbon are notable for their production of high-quality graphite for specialised applications. As demand grows, these established miners are expanding capacity, while new entrants are seeking to develop graphite deposits globally.

What are the industrial uses of graphite?

Graphite conducts electricity and heat, resists high temperatures and has a low density, properties that mean it is used extensively across various industries. In steelmaking, its heat resistance makes it ideal in the production of refractory materials used in furnace linings.

In the automotive industry, graphite’s heat resistance makes it ideal for use in brake linings and clutch materials, while it lubricating properties make it useful in the manufacture of lubricants for machinery and engines.

The aerospace sector relies on graphite’s high strength-to-weight ratio for composite materials for aircraft components while in electronics, it is used in electrodes and conductive coatings.

In nuclear reactors, graphite acts as a moderator, slowing down neutrons to sustain the fission reaction.

But it is the energy sector that is most strongly driving demand for graphite, which is an essential component in lithium-ion batteries, which power electric vehicles and portable electronics. 

What are the geopolitics of graphite production?

The global shift towards clean energy is reshaping the geopolitical landscape of graphite production. As demand for electric vehicles and renewable energy storage solutions rises, graphite – a key component in lithium-ion batteries – has become a strategically important resource.

China's dominance in graphite production has raised concerns among Western nations about supply chain security. In response, countries such as the US, Canada and Australia are developing domestic graphite resources and seeking partnerships with other producers to diversify their supply chains.

The European Union has classified graphite as a critical raw material, prompting efforts to secure supplies and develop European sources. This has led to increased interest in potential graphite deposits in countries like Sweden and Finland.

African nations, particularly Mozambique and Tanzania, are emerging as significant players in the graphite market. Their growing production capacity is attracting investment from both Western and Chinese companies, potentially altering the global supply dynamics.

The race to secure graphite resources is intensifying diplomatic and economic relationships between producing and consuming nations, mirroring patterns seen with other critical minerals essential for the energy transition.