Graphite, a lightweight material with both metallic and non-metallic properties, is essential for industries that require high conductivity, chemical resistance, and high-temperature stability. Valued at USD 15.67 billion in 2024, the worldwide graphite market is projected to grow at a 15.1 % compound annual growth rate (CAGR) to reach USD 36.40 billion by 2030. This growth will be fueled by the increasing demand for electric vehicles and energy storage systems, positioning graphite as a key material in developing clean energy and battery materials.1,2
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Natural vs. Synthetic Graphite
Natural graphite, a crystalline form of carbon found in flake, amorphous, and vein types, is mined from natural mineral deposits, while synthetic graphite is produced through high-temperature processing of carbon precursors such as petroleum coke and coal tar pitch.
Natural graphite is less expensive due to lower energy costs, whereas synthetic graphite production is highly energy-intensive but results in superior material quality. However, synthetic graphite offers higher purity, greater thermal stability, low thermal expansion, and improved consistency across production batches. It also shows improved lithiation and de-lithiation kinetics and a longer operational life compared to natural graphite.
Natural graphite is utilized in the refractory and automotive industries, with demand projected to increase due to rising industrial applications. Synthetic graphite held the highest share in the graphite market in 2024 and is forecast to maintain dominance due to its superior performance, consistency, and growing adoption in specialized industries requiring high-quality carbon materials.2,3
Global Graphite Mining Landscape
Natural graphite production involves open-cast graphite mining, followed by crushing, milling, and a multi-stage flotation process to produce a concentrate with 85–98 % carbon content.
Synthetic graphite production begins with refining heavy oils into green petroleum coke, which is then calcined into needle coke, baked at 850–1300 °C, and graphitized above 2500 °C to produce high-purity graphite.
China dominates global production of natural and synthetic graphite, accounting for over 70 % of total output. For instance, the United States (US) produced no natural graphite in 2021, importing its entire supply from China (33 %), Mexico (21 %), Canada (17 %), India (9 %), and other countries (20 %) between 2017 and 2020.
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North America collectively contributed about 12 % of global natural graphite production in 2021. The US produced 276,000 metric tons of synthetic graphite in 2019, meeting approximately 85 % of its domestic demand.
In 2024, China retained its dominant position in graphite production. The other major producers were Madagascar, Mozambique, Brazil, India, and Tanzania.3,4
China Minmetals operates the Yunshan graphite mine in Heilongjiang Province, China, one of the world’s largest, producing 200,000 metric tons per year.
Madagascar’s graphite industry is growing with new projects like NextSource Materials’ Molo mine, which started commercial production of its SuperFlake graphite concentrate in June 2023. By the end of October 2024, the company shipped its first SuperFlake consignments to the US and Germany and is increasing output toward its 17,000 MT annual capacity.5
Mozambique hosts two major graphite producers, Syrah Resources and Triton Minerals. Syrah’s Balama project is the world’s largest integrated natural graphite mining and processing operation, producing 23 graphite products across various mesh sizes.
Production was temporarily reduced in mid-2023 due to falling prices, but later resumed at a lower rate. Triton Minerals’ Ancuabe project received its environmental license in November 2024, with the company planning to divest 70 % of its Mozambique assets to China’s Shandong Yulong.5
In Brazil, South Star Battery Metals launched Phase 1 commercial production at its Santa Cruz large-flake graphite project in October 2024, with 12,000 MT annual capacity and expansion plans up to 50,000 MT. India also contributes significantly, led by Tirupati Carbons & Chemicals.5
Graphite: Market Demand and Applications
Graphite plays a key role as an anode material in lithium-ion batteries, particularly in vehicles and renewable energy storage systems. Its superior conductivity and stability ensure high energy density and efficiency in batteries, making it suitable for the global transition toward electrification.
The adoption of electric vehicles, expansion of renewable energy projects, and surging battery manufacturing capacities are boosting demand for battery-grade graphite. Graphite is commonly used in electrodes, linings, and high-heat industrial applications. In the steel and aluminum industries, it maintains structural integrity in high-temperature environments.1,2
The refractory industry, accounting for nearly half of global graphite demand, relies on graphite’s exceptional resistance to extreme heat.
Graphite-based refractories are used in linings for furnaces, kilns, reactors, and smelting operations, and in magnesia-carbon, alumina-carbon, and alumina-magnesia-carbon compositions.
These applications make graphite key to steelmaking and metal processing operations worldwide. The batteries segment holds the second-largest share of the global graphite market and is projected to grow at a double-digit CAGR through 2032.
Lithium cobalt oxide batteries use graphite anodes to achieve energy densities of 150–200 Wh/kg. Graphite is also used as a recarburizer in steel and cast-iron production, in lubricants such as oils and greases, and in friction materials like brake pads and clutches. Its versatility across industries underscores graphite’s vital role in supporting industrial manufacturing and the global transition to clean energy.1,2
Supply Chain and Strategic Concerns of Graphite
The current supply of natural and synthetic graphite is highly concentrated in China, creating strategic risks due to low recycling rates of end-of-life batteries.
Synthetic graphite faces additional supply constraints due to its reliance on needle coke, a petroleum by-product. Future demand uncertainty, potentially a three- to seven-fold increase by 2040, and the high concentration of graphite use in lithium-ion batteries (up to 80 %) exacerbate supply concerns.6,7
Efforts to diversify supply include expanding mining outside China, particularly in Africa, and developing US macrocrystalline deposits (19?Mt), which could support domestic electric vehicle and clean energy demand from 2025-2040.
Alternative feedstocks for synthetic graphite and higher use of natural graphite (>75 %) may alleviate supply pressures. Environmental challenges exist across the graphite supply chain. Natural graphite mining causes ecosystem disruption, water pollution, and habitat loss, while synthetic graphite production is energy-intensive, generating substantial greenhouse gas emissions. Sustainable mining practices, recycling, and cleaner processing methods are necessary to mitigate these risks.1,6,7
Future Outlook of the Graphite Market
The global graphite market is projected to grow rapidly, driven by rising demand from electric vehicles, renewable energy storage, and battery manufacturing, with technological advances improving graphite purity and performance.
Recycling of spent lithium-ion batteries and development of alternative carbon materials are expected to supplement supply and reduce reliance on China. Price volatility may persist due to supply bottlenecks, concentrated production, and needle coke constraints, underscoring the need for diversified mining and sustainable processing.
References and Further Reading
- Graphite Market [Online] Available at https://www.marketsandmarkets.com/Market-Reports/graphite-market-120270209.html (Accessed on 05 November 2025)
- Graphite Market Size, Share & Industry Analysis, By Product (Synthetic and Natural), By Application (Refractories, Foundries, Batteries, Friction Products, Lubricants, Recarburizing, and Others), and Regional Forecast, 2025-2032 [Online] Available at https://www.fortunebusinessinsights.com/graphite-market-105322 (Accessed on 05 November 2025)
- Iyer, R.K., Kelly, J.C. (2022) Updated Production Inventory for Lithium-lon Battery Anodes for the GREET® Model, and Review of Advanced Battery Chemistries [Online] Available at https://www.osti.gov/servlets/purl/1891640 (Accessed on 05 November 2025)
- Leading graphite producing countries worldwide in 2024 [Online] Available at https://www.statista.com/statistics/267366/world-graphite-production/ (Accessed on 05 November 2025)
- Pistilli, M. (2025) Top 10 Graphite-producing Countries [Online] Available at https://investingnews.com/daily/resource-investing/battery-metals-investing/graphite-investing/top-graphite-producing-countries/ (Accessed on 05 November 2025)
- Hegeman, P., & Zhou, L. (2025). Towards a sustainable supply of graphite: a geological way forward. Earth Science, Systems and Society, 5(1), esss2024-014. DOI: 10.1144/esss2024-014, https://www.lyellcollection.org/doi/full/10.1144/esss2024-014
- Gorman, S. et al. (2025). US graphite sourcing for electric vehicle battery applications. Journal of Industrial Ecology. DOI: 10.1111/jiec.70104, https://onlinelibrary.wiley.com/doi/10.1111/jiec.70104
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