The global graphite market is undergoing significant transformation driven by rising demand for lithium-ion batteries and geopolitical tensions affecting supply chains. Graphite, a naturally occurring form of pure carbon, is a key component in electric vehicle batteries and other technologies. The market is expected to grow substantially, with projections suggesting a compound annual growth rate of 6.9%, reaching US$13.35 billion by 2032.
Geopolitical tensions, particularly between the US and China, are reshaping the graphite trade. China, the world’s leading graphite producer, controls a significant portion of the global supply chain. This has prompted concerns about over-reliance on Chinese graphite, especially in North America. Companies like Graphite One, a company focused on developing its Graphite Creek project in Alaska, are seeking to establish domestic graphite production to reduce supply chain risks. The company is listed on the FAST-41 Dashboard, and recently completed a Feasibility Study at Graphite Creek in Alaska, after receiving $37 million in funding from the Department of Defense.
In Australia, efforts are underway to limit reliance on imported graphite and develop local resources. Lincoln Minerals, an ASX-listed company with several graphite projects, is contributing to Australia’s graphite ore reserves. The company is progressing its Kookaburra Gully Project towards a Feasibility Study. The Australian government is also investing in strategic reserves and production tax credits to support the development of critical minerals like graphite. With the global graphite market evolving, companies worldwide are expediting production outside of China to meet growing demand and secure supply chains.
