Graphite is an excellent conductor of heat and electricity and also has the highest strength of any natural material. However, it wasn’t until recently that the metal began to gain popularity.
Interest in graphite mining is increasing in large part because lithium-ion batteries are becoming more common. These batteries are used in everything from phones to electric vehicles (EVs), and graphite is one of their key raw materials. Both synthetic and natural graphite, in the form of the intermediate product spherical graphite, are products that are used in the anodes of lithium-ion batteries. As lithium-ion battery demand grows, graphite demand is also expected to rise from nations around the world.
In fact, despite discussions on changes in lithium-ion battery chemistry, many experts think graphite will remain a key raw material in EV batteries for at least the next decade. Hence, demand for graphite from the battery anode segment is set to experience significant growth as electric car sales and the energy storage trend continue.
Fortune Business Insights projects that the global graphite market will experience a compound annual growth rate of 6.9 percent to between 2023 and 2030 to reach a value of US$13.35 billion. ‘Increasing demand from the refractory industry and skyrocketing demand from the battery industry are creating a supply crisis, pushing different countries worldwide to consider securing their requirements,’ the firm stated.
Where is graphite found?
Graphite is found in metamorphic and igneous rock in many regions of the world, but especially Asia and East Africa.
For any investor following the sector, it will come as no surprise that China is dominating both the mining and refining sides of the graphite market for natural and synthetic. The country also hosts the world’s largest known natural graphite reserves at 78 million metric tons (MT), as reported by US Geological Survey (USGS). Brazil, Mozambique, Madagascar and Tanzania round out the top five largest graphite reserves by country, and also rank among the top 10 graphite producers.
Read on for a look at global graphite production by country in 2023 to learn more about where graphite is mined. All stats are based on the data from the USGS.
1. China
Natural graphite mine production: 1.23 million metric tons; graphite reserves: 78 million metric tons
China was the world’s largest graphite producer in 2023, producing 1.23 million metric tons of the metal, 50 percent higher than the amount it produced in 2021. According to the USGS, the country accounted for about 77 percent of world graphite mine supply last year. Around 85 percent of its 2023 production was in the form of flake graphite.
China’s stranglehold on the graphite market was strengthened by its quick graphite production recovery after COVID-19 shutdowns. The country’s government policies can have a dramatic impact on prices for the material.
‘During the first 9 months of (2023), China exported 58,000 tons of flake graphite concentrate, less than the 81,000 tons exported in the same period in 2022,’ reports the USGS. ‘During the same period in 2023, China exported 39,000 tons of natural spherical graphite, less than the 45,000 tons exported in 2022.’
2. Madagascar
Natural graphite mine production: 100,000 metric tons; graphite reserves: 24 million metric tons
Madagascar produced 30,000 MT less graphite in 2023 than it had in previous year, but managed to take the number two spot. The East African nation took third place in 2022 after rising from the fifth spot in 2021. The African nation also has the fourth largest graphite reserves. The USGS states that large graphite deposits are being developed in this island country.
Growth in Madagascar’s graphite mining industry is being aided by developing projects. For example, NextSource Materials’ (TSX:NEXT,OTCQB:NSRCF) Molo graphite mine began commercial production of its SuperFlake graphite concentrate in June 2023 after initiating plant commissioning in March. The company is now focused on ramping up plant throughput to its nameplate capacity of 17,000 MT per annum. As of early August 2024, saleable SuperFlake concentrate from the Molo mine is now being transported to the Port of Tulear in preparation for export.
3. Mozambique
Natural graphite mine production: 96,000 metric tons; graphite reserves: 25 million metric tons
Mozambique takes the third spot on the list with graphite output of 96,000 MT in 2023, down 42 percent from the previous year. The country is home to two main graphite miners: Syrah Resources (ASX:SYR,OTC Pink:SYAAF) and Triton Minerals (ASX:TON).
Sydney-based Syrah Resources’ Balama project is the world’s largest integrated natural graphite-mining and processing operation. In May 2023, the company put the brakes on production at Balama on falling graphite prices. Operations were restarted in the third quarter of the year, although at a lower production rate, according to the USGS. Lower production rates continued into 2024 as Syrah awaits a time when graphite demand and prices warrant higher production rates.
4. Brazil
Natural graphite mine production: 73,000 metric tons; graphite reserves: 74 million metric tons
Brazil’s ranking among the top graphite producing countries has slipped in recent years. The South American nation was the world’s second largest graphite producer in 2021 with output of 82,000 MT during the period. Brazil’s 2022 graphite-mining output decreased by 10,000 MT from the previous year at the same time as Madagascar and Mozambique saw much larger gains in their graphite production. In 2023, output from Brazil’s graphite mines ticked up slightly by 1,000 MT to 73,000 MT for the year.
Brazil has the second highest graphite reserves by country, coming in at 74 million MT. Little information is available about the Brazilian graphite-mining industry, as the country’s top producers of the metal are private. However, the nation has become a hot spot for graphite exploration and development. One advanced project is South Star Battery Metals’ (TSXV:STS,OTCQB:STSBF) Santa Cruz large-flake graphite property, where Phase 1 construction started in June 2022 and Phase 1 commercial production is slated to kick off in September 2024.
5. South Korea
Natural graphite mine production: 27,000 metric tons; graphite reserves: 1.8 million metric tons
South Korea, officially the Republic of Korea, made it onto this list of the top graphite-producing countries fairly recently after it increased its output from 10,500 MT of graphite in 2021 to 23,800 MT in 2022. South Korea’s graphite output increased further in 2023 to 27,000 metric tons of the strategic commodity.
The rise in graphite production is in line with the South Korean government’s goal of becoming a leader in the global EV battery market and transitioning away from reliance on China for its graphite requirements. South Korea’s Ministry of Trade, Industry and Energy is dedicating US$7 billion to this goal.
6. Russia
Natural graphite mine production: 16,000 metric tons; graphite reserves: 14 million metric tons
In 2023, Russia retained its title of sixth largest graphite producer, although its output remained flat from the previous year. Prior to its war with Ukraine, the country was expected to significantly increase its production at operations owned by Dalgraphite and Uralgraphite.
7. India
Natural graphite mine production: 11,500 metric tons; graphite reserves: 8.6 million metric tons
India’s graphite output in 2023 came to 11,500 metric tons, a jump of 500 MT over 2022’s amount. The country’s reserves vary widely from state to state, with Arunachal Pradesh holding nearly half of India’s graphite reserves.
The graphite-mining country has several main producers, including Tirupati Carbons & Chemicals, Chotanagpur Graphite Industries and Carbon & Graphite Products. HEG (NSE:HEG,BSE:509631) is a leading, although small-scale, graphite electrode producer.
8. North Korea
Natural graphite mine production: 8,100 metric tons; graphite reserves: 2 million metric tons
North Korea’s total graphite output last year came to 8,100 metric tons, on par with the last few years. The country’s reserves of the commodity stand at 2 million MT. Little further information is available on graphite mining in North Korea.
9. Norway
Natural graphite mine production: 7,200 metric tons; graphite reserves: 600,000 metric tons
Norway’s graphite output rose from 6,290 MT in 2021 to 10,380 MT in 2022. However, 2023 saw a dramatic drop back down to 7,200 metric tons of graphite for Norway.
All graphite deposits in the country contain flake graphite and are generally low tonnage. That said, many are in favorable locations — for example, close to the sea or to the electrical grid. The Skaland graphite mine in the northern region of the country is the only such mine in Scandinavia and the largest crystalline graphite producer in Europe.
10. Tanzania
Natural graphite mine production: 6,000 metric tonsgraphite reserves: 18 million metric tons
Rounding out the top 10 graphite producing countries is Tanzania, which produced 6,000 metric tons of the material in 2023. The East African country is also home to the world’s fifth largest graphite reserves at 18 million MT.
Tanzania has become a hot spot for new graphite projects, so the country’s mine production capacity is expected to increase in the coming years. In July 2024, Walkabout Resources (ASX:WKT) began shipping graphite concentrate from its newly operating Lindi Jumbo graphite mine to the European market. Volt Resources (ASX:VRC) recently got the green light from regulators to begin the work necessary to bring its large-scale Bunyu graphite project into production.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.