Graphite Market
Natural graphite demand is forecast to grow significantly as demand for lithium-ion batteries and active anode material accelerates leading to a near-term supply deficit in natural graphite
Natural graphite is predominantly produced in China, Mozambique, Madagascar, Brazil with smaller scale supply from Russia and Vietnam. Natural graphite production in two northern provinces of China currently accounts for the majority of global supply. Natural graphite has many unique properties that are useful for an array of applications.
Sources of Graphite
Flake Graphite
Flake graphite is formed when deposits of carbon come under pressure and temperature and has a distinctly flaky or platy morphology. Most often hosted in metamorphic rock, flake graphite deposits are distributed fairly uniformly throughout the rock and can vary in both flake size and purity (graphitic carbon content). Flake sizes range from 180-300+ microns ("Jumbo Flake" and "Large Flake") to 75-150 microns ("Fine Flake") and each flake size category has unique applications. In-situ ore grades for flake graphite deposits range between 2% and 30% total graphitic carbon. Most flake graphite operations process ore to a concentrate product with a graphitic carbon grade of more than 90%. Flake graphite is currently the second largest supply source of graphite globally by mass and is the most geologically common variety of natural graphite. Flake graphite is the only form of natural graphite used in significant quantities in the battery anode supply chain.
Amorphous Graphite
Amorphous graphite, which is a microcrystalline material, develops from the metamorphosis of anthracite coal seams and this graphite is a seam mineral, not a vein mineral. Amorphous graphite is the least pure, in terms of graphitic carbon grade, and generally has a higher ash content compared with other forms of natural graphite. Amorphous graphite is extracted using conventional coal-type mining techniques. Commercial graphitic carbon grades of amorphous graphite product, following extensive processing, varies from 75% to 85%. Amorphous graphite is currently the third largest supply source of graphite globally by mass.
Crystalline Vein Graphite
Crystalline vein graphite deposits contain the highest purity of natural graphite, with in-situ graphitic carbon grades ranging between 94-99%. The exact formative process of vein graphite is uncertain, but it is suspected a fluid phase deposit is transformed into graphite through a combination of time, temperature, and pressure. Vein graphite is only produced commercially in Sri Lanka although deposits also exist in the UK and the USA. Crystalline vein graphite represents a small percentage of global graphite supply by mass.
Synthetic Graphite
Synthetic graphite is manufactured through heat treatment of petroleum coke, coal-tar pitch or oil. Synthetic graphites are not a single material but are members of a broad family of essentially pure processed carbon materials. Products can be tailored to vary widely in strength, density, conductivity, pore structure, and crystalline development. These attributes contribute to widespread applicability of synthetic graphite in industrial and battery applications. Synthetic graphite is currently the largest supply source of graphite globally by mass and is used in significant quantities in the battery anode supply chain.
Uses for Different Types of Graphite
Focusing on Flake Graphite
Flake graphite deposits are characterised by particle size distribution and graphitic carbon content. Flakes come in jumbo (+50mesh), large (+80mesh), medium (+100mesh), fines (-100mesh) and powder (-200/-325mesh). In-situ carbon grades of graphite deposits range from 2% to 30% with concentration processes, such as flotation, upgrading grade of natural graphite in product concentrates to 90-98% total graphitic carbon.
Balama has a high in-situ ore grade of ~16% total graphitic carbon and Balama natural graphite finished products are high grade, at 94-98% total graphitic carbon. Balama's product range is distributed across various flake sizes with ~80% being fines (-100mesh) – the natural graphite demanded by the battery anode supply chain.
Natural Graphite Supply
Currently 65-70% of the world’s natural graphite supply is from China. Almost all of Chinese natural graphite ore supply is from Luobei and Jixi, two provinces in the north-eastern region of China. The province of Luobei is currently the largest production region for fine flake graphite in the world, and a key supply source in the battery anode supply chain alongside Balama. Natural graphite mining and processing in Loubei and Jixi is fragmented and operates seasonally with widespread shut downs occurring during Northern Hemisphere winter (November to March).
Balama is the single largest integrated natural graphite mining and processing operation globally and is a large-scale, year-round supplier of natural graphite into global markets.
Natural Graphite is A Critical Raw Material
Natural graphite is considered a critical mineral by the US, Japan, South Korea, UK and Australian governments and the European Union due to its high intensity of use in lithium-ion batteries and requirement for electric vehicles and energy storage applications. Supply chain participants, governments and other stakeholders recognise the significant geographic concentration in supply of natural graphite and potential future risks to regional supply security.
Natural Graphite Demand
Since 2024, lithium-ion batteries have been the largest end-market for natural graphite. Electric vehicles, energy storage systems and consumer electronics are the fastest growing markets for lithium-ion batteries. Fines flake graphite is the preferred raw material feedstock for natural graphite active anode material. Syrah’s Balama operation is a globally relevant, all seasons supplier of fines flake graphite and Balama's products are highly regarded in the battery anode supply chain. The largest producers of active anode material and anode precursor products globally have qualified and source Balama fines flake graphite.
Li-ion Battery Capacity Growth by Application (GWh)
Source: Benchmark Minerals Intelligence, Q2 2026
According to Benchmark Minerals Intelligence, the share of total natural graphite demand coming from battery applications is forecast to rise from 61% in 2026 to 76% in 2035.
Natural Graphite Demand Growth
Source: Benchmark Minerals Intelligence, Q2 2026
Strong ex-China demand outlook
Global battery demand is currently weighted towards China, but strong growth, particularly in North America and Europe, is expected to reduce China’s share of global demand. This reflects growing participation from North America and Europe in the active anode material market.
Natural Graphite Demand Expected to be Strong in North America and Europe
Source: Benchmark Minerals Intelligence, Q2 2026
Other uses
Natural graphite has been used in industrial processes for over 100 years for its unique material properties – lubricity, high melting point, high thermal and electrical conductivity, chemical stability and corrosion resistance.
The main use of natural graphite in industrial applications is in steel-related industries, where graphite is principally used as refractories in foundries or crucibles due to it is exceptionally high melting point.
Natural graphite is also used as a major additive for coatings providing lubricant, conductive and shielding benefits.
Other industrial uses for natural graphite are as strengthening additives, dry lubricants, friction products (brake pads and clutch linings), flame retardants, nuclear moderators and reflectors, sealants, graphite shapes and pencils. Synthetic graphite is exclusively used in electrodes for electric arc furnaces.
Source: Benchmark Minerals Intelligence, Q2 2026
Natural graphite and its derivative products are critical materials used in defence, aerospace, nuclear and other advanced technology industries due to its unique ability to withstand extreme temperatures, mechanical stress and demanding operating environments. High-purity graphite is essential for applications such as missile and rocket components, aircraft braking systems, nuclear reactors, semiconductors and hydrogen technologies, where it is often irreplaceable. Demand for specialised graphite is expected to grow steadily as defence spending, aerospace activity, nuclear power development and semiconductor manufacturing expand, highlighting the strategic importance of secure supply chains.
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