Overview
Graphite has been on the list of the minerals considered critical to the economic and national security of the United States since an initial list published by the U.S. Department of the Interior on May 18, 2018. Graphite is the most used anode in lithium-ion batteries, benefitting from its high energy and power density. The global need for high-quality, low impurity graphite is directly related to the growth in electric vehicle (EV) adoption as discussed above. According to recent publication from Benchmark Mineral Intelligence, a well-respected mineral consultancy, to meet demand for anode materials, an estimated 97 natural flake graphite mines will need to be built by 2035, assuming an average size of 56,000 tonnes a year and no contribution from recycling.
Graphite plays a critical role in steel production, automotive manufacturing, lubricants, and battery technology—particularly as the anode material in most lithium-ion batteries. It also is used extensively in military applications including rocket and missile nozzles, jet engine components, submarine hulls to reduce acoustic signatures, and more.
China accounts for 77% of the world’s graphite production, with the U.S. sourcing 44% of its supply from China. Despite its reliance on imports, the U.S. has no active graphite mines.
Natural graphite is a naturally occurring form of carbon that is characterized by its crystalline structure and unique properties, including excellent electrical and thermal conductivity. It is primarily found in three forms: flake, amorphous, and lump graphite. Flake graphite is the most commercially valuable form, used in various applications due to its high purity and conductivity. Natural graphite is essential in numerous industries, particularly in the production of batteries, lubricants, and refractories, making it a critical mineral in the modern economy.
Countries with significant natural graphite reserves include China, Brazil, Mozambique, Madagascar, and India. As of 2023, China holds the largest reserves, estimated at around 78 million metric tons, which accounts for approximately 28% of the global total. Brazil follows with about 74 million metric tons, while Mozambique and Madagascar have reserves of 25 million and 24 million metric tons, respectively. Despite these reserves, the mining and processing of natural graphite are not evenly distributed globally. China dominates the processing sector, controlling over 60% of the world’s graphite production and refining capabilities. This concentration of processing capacity raises concerns about supply chain vulnerabilities for countries that rely heavily on imported graphite.
Natural graphite is used in a wide range of applications, with the most significant demand coming from the battery industry, particularly for lithium-ion batteries (LIBs). As the world transitions to electric vehicles and renewable energy storage solutions, the demand for natural graphite is expected to surge. In 2023, approximately 33% of natural graphite was used in batteries, while other applications included lubricants, refractories, and foundry products. The unique properties of natural graphite, such as its ability to withstand high temperatures and its excellent conductivity, make it an ideal material for these applications. Furthermore, the growing emphasis on sustainability and environmental responsibility has led to increased interest in natural graphite, as it is often considered more environmentally friendly compared to synthetic alternatives.
The importance of natural graphite to the U.S. economy is significant, particularly as the country seeks to enhance its technological capabilities and reduce dependence on foreign sources. The U.S. has identified natural graphite as a critical mineral, essential for national security and economic stability. Currently, the U.S. relies heavily on imports for its graphite supply, with a substantial portion coming from China. This reliance poses risks, especially in light of geopolitical tensions and trade restrictions. To mitigate these risks, the U.S. government is actively pursuing strategies to bolster domestic production and processing of natural graphite, which could enhance supply chain resilience and support the growth of clean energy technologies.
When comparing natural graphite to synthetic graphite, several advantages of natural graphite become apparent. Natural graphite typically has a higher crystalline structure, which results in better electrical and thermal conductivity than synthetic graphite. Additionally, natural graphite is often less expensive to produce, as it requires less energy and fewer resources compared to the energy-intensive processes involved in synthesizing graphite. The environmental impact of natural graphite extraction can also be lower than that of synthetic graphite production, particularly when sustainable mining practices are employed. As demand for graphite continues to rise, the benefits of natural graphite over synthetic alternatives will likely play a crucial role in shaping future supply chains and market dynamics.
In summary, natural graphite is a vital resource with significant reserves concentrated in a few countries, primarily China. Its applications in batteries and other industries underscore its importance to the U.S. economy, particularly as the nation seeks to enhance its technological capabilities and reduce reliance on imports. The advantages of natural graphite over synthetic graphite further highlight its potential role in supporting sustainable development and clean energy initiatives.
Graphite in Brazil
Brazil holds significant potential for natural graphite production, boasting the second-largest reserves of this critical mineral globally, estimated at approximately 74 million metric tons as of 2024. This positions Brazil as a key player in the graphite market, particularly as demand for natural graphite is projected to grow rapidly due to its essential role in various applications, including batteries for electric vehicles, lubricants, and steel production. The Brazilian graphite market is expected to experience a compound annual growth rate (CAGR) of 6.1% from 2025 to 2030, with natural graphite being the fastest-growing segment within the industry.
The country is also strategically positioned to capitalize on the increasing global demand for graphite, driven by the transition to renewable energy and the electrification of transportation. Brazil’s government is actively promoting the development of its mineral resources, including graphite, to enhance its industrial capabilities and reduce reliance on imports. However, challenges remain, such as the need for improved infrastructure and investment in mining technologies to fully exploit its graphite reserves. With the right policies and investments, Brazil could emerge as a leading supplier of natural graphite in the coming years.
