MARKET BRIEF
Graphite is one of most versatile of non-metallic minerals. It is one of four main natural forms of carbon along with coke, coal, anthracite and diamond. Graphite can also be manufactured synthetically, primarily via the Acheson Process which utilises lower purity carbon-bearing raw materials blended with tar pitch.
Natural graphite is produced in three commercial forms: amorphous (60-85%C), flake (>85%C) and vein (>90%C). Vein graphite is only being mined in Sri Lanka.
Graphite’s main markets are a combination of traditional industry – refractories (high temperature bricks and linings utilised in metal production, ceramics, petrochemicals and cement industries) – as well as batteries and the main anode material. Other markets include steel-making (as a recarburizer), brake-linings for vehicles and lubricants.
Natural and synthetic graphite industries operate independently and have little crossover in market share and end-uses.
Natural graphite supply
Natural graphite production was 1.1m tonnes worldwide in 2012. Of this total, flake accounted for 55%, amorphous 44% and vein 1%.
The dominance of Chinese production is the main talking point in the industry. China accounted for 79% of total world output followed by Brazil, India, North Korea and Canada. Smaller levels of production are also seen in Norway, Zimbabwe, Madagascar, Russia, Ukraine and Germany.
The natural graphite industry is going through a corrective phase following over two decades of no new supply coming on-stream.
China is focusing on controlling its sprawling domestic graphite industry and improving pollution levels and mining practices. At the same time a macro-economic push to move from lower value exports to producing value added products is expected to see less graphite concentrate destined for export and higher production of downstream products such as spherical graphite and battery anode materials.
The 2011 exploration boom
The emergence of electric vehicles (EV) and the potential boom in lithium-ion battery demand has buoyed interest in graphite’s role as a major battery raw material. This led to an exploration boom between 2011 and 2012 which saw over 70 new companies being established, predominately focused on exploration in Canada.
Towards the end of 2012, the rush slowed as investment from the capital markets dried up.
Graphite is one of most versatile of non-metallic minerals. It is one of four main natural forms of carbon along with coke, coal, anthracite and diamond. Graphite can also be manufactured synthetically, primarily via the Acheson Process which utilises lower purity carbon-bearing raw materials blended with tar pitch.
Natural graphite is produced in three commercial forms: amorphous (60-85%C), flake (>85%C) and vein (>90%C). Vein graphite is only being mined in Sri Lanka.
Graphite’s main markets are a combination of traditional industry – refractories (high temperature bricks and linings utilised in metal production, ceramics, petrochemicals and cement industries) – as well as batteries and the main anode material. Other markets include steel-making (as a recarburizer), brake-linings for vehicles and lubricants.
Natural and synthetic graphite industries operate independently and have little crossover in market share and end-uses.
Natural graphite supply
Natural graphite production was 1.1m tonnes worldwide in 2012. Of this total, flake accounted for 55%, amorphous 44% and vein 1%.
The dominance of Chinese production is the main talking point in the industry. China accounted for 79% of total world output followed by Brazil, India, North Korea and Canada. Smaller levels of production are also seen in Norway, Zimbabwe, Madagascar, Russia, Ukraine and Germany.
The natural graphite industry is going through a corrective phase following over two decades of no new supply coming on-stream.
China is focusing on controlling its sprawling domestic graphite industry and improving pollution levels and mining practices. At the same time a macro-economic push to move from lower value exports to producing value added products is expected to see less graphite concentrate destined for export and higher production of downstream products such as spherical graphite and battery anode materials.
The 2011 exploration boom
The emergence of electric vehicles (EV) and the potential boom in lithium-ion battery demand has buoyed interest in graphite’s role as a major battery raw material. This led to an exploration boom between 2011 and 2012 which saw over 70 new companies being established, predominately focused on exploration in Canada.
Towards the end of 2012, the rush slowed as investment from the capital markets dried up.
Major graphite producer highlights
• Nacional de Grafite, Brazil
• Timcal Ltd, Canada
• Skaland Graphite
• Grafitbergbau Kaiserberg, Austria
• Tirupati Carbons, India
• Agrawal Graphite Industries, India
• Tamin, India
Major graphite processors
• Asbury Carbons
• Superior Graphite
Graphite exploration company highlights
• Northern Graphite, Canada
• Focus Graphite, Canada
• Ontario Graphite, Canada
• Energizer Resources, Madagascar
• Syrah Resources, Mozambique
• Standard Graphite, Canada
• Talga Resources, Sweden
• Graphite One, Canada