Electrification
Natural Graphite: The Material for a Green Economy
The following content is sponsored by Northern Graphite.
Natural Graphite: The Material for a Green Economy
As the world moves towards decarbonization, electric vehicles (EVs) and clean energy technologies offer a path towards a sustainable future. However, these technologies are mineral-intensive, and the minerals they use are becoming increasingly valuable.
Graphite is one such mineral.
As the anode material and single largest component of lithium-ion batteries, graphite has a key role in the clean energy transition. But there are two types of graphite: natural and synthetic. Which one is better for the green economy?
The above infographic from Northern Graphite outlines the need for graphite and weighs the pros and cons of the two types of graphite.
The Need for Graphite
Graphite has six key properties that make it essential for EVs and other clean energy technologies.
- High electrical conductivity
- High thermal conductivity
- Relatively low cost
- High energy density
- Long cycle life
- High temperature resistance
A single EV contains 66.3kg of graphite, according to the IEA. With more EVs on the road, the world will need more graphite. In fact, among critical battery metals like cobalt, nickel, and lithium, graphite is projected to see the largest increase in demand through 2029.
Batteries can use both types of graphite as anode materials. As of 2020, synthetic graphite dominated the anode market with 58% of market share. However, this could change over the next decade. By 2030, natural graphite is expected to see a 1437% increase in anode demand, compared to a 705% increase for synthetic graphite.
Why is the demand for natural graphite rising at a faster rate?
Natural Graphite vs Synthetic Graphite
The methods of production make the key distinction between the two types of graphite. Natural graphite occurs naturally in mineral deposits and miners extract it from the ground through open-pit and underground mining. On the contrary, manufacturers make synthetic graphite by high-temperature treatment of carbon materials like petroleum coke and coal tar.
Producing graphite from mineral deposits results in carbon dioxide (CO2) emissions from the conventional mining process. However, the heat treatment of synthetic graphite is an energy-intensive process that releases harmful emissions.
According to one study, the manufacturing of synthetic graphite produces roughly 4.9kg of CO2 per kg of graphite. That’s roughly three times the amount of CO2 emissions that come from producing 1kg of natural graphite.
Additionally, natural graphite is also cheaper to produce than synthetic graphite. According to research from the Öko-Institut in Germany, anode material made from natural graphite is priced between $4 and $8 per kg, while synthetic graphite-based anode material costs $12-$13 per kg.
The Anode Material for a Green Economy
Critical minerals like graphite are becoming increasingly important in the transition to clean energy. However, managing the environmental impact and efficiency of producing these raw materials is just as important.
With a lower environmental footprint and lower production costs, natural graphite is the anode material for a greener future. As the energy transition continues, new graphite mines could play a key role in meeting graphite’s rapidly growing demand.
Electrification
Visualizing the Supply Deficit of Battery Minerals (2024-2034P)
A surplus of key metals is expected to shift to a major deficit within a decade.
Visualizing the Supply Deficit of Battery Minerals (2024-2034P)
The world currently produces a surplus of key battery minerals, but this is projected to shift to a significant deficit over the next 10 years.
This graphic illustrates this change, driven primarily by growing battery demand. The data comes exclusively from Benchmark Mineral Intelligence, as of November 2024.
Minerals in a Lithium-Ion Battery Cathode
Minerals make up the bulk of materials used to produce parts within the cell, ensuring the flow of electrical current:
- Lithium: Acts as the primary charge carrier, enabling energy storage and transfer within the battery.
- Cobalt: Stabilizes the cathode structure, improving battery lifespan and performance.
- Nickel: Boosts energy density, allowing batteries to store more energy.
- Manganese: Enhances thermal stability and safety, reducing overheating risks.
The cells in an average battery with a 60 kilowatt-hour (kWh) capacity—the same size used in a Chevy Bolt—contain roughly 185 kilograms of minerals.
Battery Demand Forecast
Due to the growing demand for these materials, their production and mining have increased exponentially in recent years, led by China. In this scenario, all the metals shown in the graphic currently experience a surplus.
In the long term, however, with the greater adoption of batteries and other renewable energy technologies, projections indicate that all these minerals will enter a deficit.
For example, lithium demand is expected to more than triple by 2034, resulting in a projected deficit of 572,000 tonnes of lithium carbonate equivalent (LCE). According to Benchmark analysis, the lithium industry would need over $40 billion in investment to meet demand by 2030.
| Metric | Lithium (in tonnes LCE) | Nickel (in tonnes) | Cobalt (in tonnes) | Manganese (in tonnes) |
|---|---|---|---|---|
| 2024 Demand | 1,103,000 | 3,440,000 | 230,000 | 119,000 |
| 2024 Surplus | 88,000 | 117,000 | 24,000 | 11,000 |
| 2034 Demand | 3,758,000 | 6,082,000 | 468,000 | 650,000 |
| 2034 Deficit | -572,000 | -839,000 | -91,000 | -307,000 |
Nickel demand, on the other hand, is expected to almost double, leading to a deficit of 839,000 tonnes by 2034. The surge in demand is attributed primarily to the rise of mid- and high-performance electric vehicles (EVs) in Western markets.
Electrification
Visualizing the EU’s Critical Minerals Gap by 2030
This graphic underscores the scale of the challenge the bloc faces in strengthening its critical mineral supply by 2030.
Visualizing EU’s Critical Minerals Gap by 2030
The European Union’s Critical Raw Material Act sets out several ambitious goals to enhance the resilience of its critical mineral supply chains.
The Act includes non-binding targets for the EU to build sufficient mining capacity so that mines within the bloc can meet 10% of its critical mineral demand.
Additionally, the Act establishes a goal for 40% of demand to be met by processing within the bloc, and 25% through recycling.
Several months after the Act’s passage in May 2024, this graphic highlights the scale of the challenge the EU aims to overcome. This data comes exclusively from Benchmark Mineral Intelligence, as of July 2024. The graphic excludes synthetic graphite.
Securing Europe’s Supply of Critical Materials
With the exception of nickel mining, none of the battery minerals deemed strategic by the EU are on track to meet these goals.
Graphite, the largest mineral component used in batteries, is of particular concern. There is no EU-mined supply of manganese ore or coke, the precursor to synthetic graphite.
By 2030, the European Union is expected to supply 16,000 tonnes of flake graphite locally, compared to the 45,000 tonnes it would need to meet the 10% mining target.
| Metal | 2030 Demand (tonnes) | Mining (F) | Processing (F) | Recycling (F) | Mining Target | Processing Target | Recycling Target |
|---|---|---|---|---|---|---|---|
| Lithium | 459K | 29K | 46K | 25K | 46K | 184K | 115K |
| Nickel | 403K | 42K | 123K | 25K | 40K | 161K | 101K |
| Cobalt | 94K | 1K | 19K | 6K | 9K | 37K | 23K |
| Manganese | 147K | 0K | 21K | 5K | 15K | 59K | 37K |
| Flake Graphite | 453K | 16K | 17K | N/A | 45K | 86K | N/A |
The EU is also expected to mine 29,000 tonnes of LCE (lithium carbonate equivalent) compared to the 46,000 tonnes needed to meet the 10% target.
In terms of mineral processing, the bloc is expected to process 25% of its lithium requirements, 76% of nickel, 51% of cobalt, 36% of manganese, and 20% of flake graphite.
The EU is expected to recycle only 22% of its lithium needs, 25% of nickel, 26% of cobalt, and 14% of manganese. Graphite, meanwhile, is not widely recycled on a commercial scale.
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