Graphite is a dark grey crystalline form of the element carbon. It is composed of multiple layers of graphene flakes stacked on top of each other. It occurs naturally, but it can also be produced synthetically from fossil-fuel feedstock, such as petroleum coke, a by-product of oil refining. The two main properties determining the value of graphite and its final use are the size of flakes and the Total Graphitic Carbon Content (TGC). The larger the flakes and the higher the TGC, the greater the premium on graphite.
Due to its high heat resistance, thermal and electrical conductivity, and soft, flaky structure, it has multiple uses:
Graphite is also extensively used in the defense industry:
Energy intensity: Synthetic graphite is more energy-intensive than natural graphite as its production involves processes at extremely high temperatures.
Consistency: Synthetic graphite has more consistent properties (flake size, shape, porosity), which can be customized for specific applications, whereas the properties of natural graphite depend largely on geology.
Supply security: Synthetic graphite can theoretically be produced anywhere with the necessary facilities and feedstock, potentially offering more supply flexibility than natural graphite, which depends on the location of deposits and the associated political risks. China currently dominates both natural and synthetic graphite production.
Performance: Natural graphite typically has better thermal and electrical conductivity in its pure form due to its larger crystallite structure, while synthetic graphite offers excellent high-temperature and chemical corrosion resistance. Through processing, synthetic graphite can achieve comparable or superior performance for applications where purity and consistency are critical.
Purity: Synthetic graphite can achieve very high purity levels, which is why it is preferred for producing specialized electronic components and semiconductors.
Production costs: Synthetic graphite is more costly to produce due to its more complex and energy-intensive manufacturing process.
Environmental impact: Synthetic graphite has a far greater carbon footprint than natural graphite because it is generally produced from fossil-fuel feedstock (mostly petroleum coke), although non-fossil-fuel alternatives, such as biomass, are emerging. The high carbon footprint is also due to its energy-intensive manufacturing process, especially when the energy source is fossil fuel-based.
The environmental impacts of natural graphite mostly derive from mining activities and include destruction of natural habitats, air pollution from dust emissions, and the risk of water and soil contamination from heavy metals and chemicals used during the purification process in the event of inadequate waste management.
China accounted for about 78% of global graphite mine supply in 2024, dominating both natural and synthetic graphite production. China also holds the largest reserves of natural graphite in the world. Sub-Saharan African countries Madagascar and Mozambique occupied the second and third places in global mine supply in 2024, followed by Brazil, India, Tanzania, Canada and Russia.
China’s dominance is even greater at later stages of graphite processing. The Asian country controls more than 95% of the global supply of battery-grade graphite.
In total, sub-Saharan Africa is the second-largest regional natural graphite supplier. A pipeline of new projects in Madagascar, Mozambique and Tanzania, and growing efforts by key world players such as the US and the EU to diversify their graphite supply chains, underscore Africa’s promising role as an alternative to China.
The EU designated in June 2025 Maniry graphite project in southern Madagascar, owned by Australia-based mining company Evion Group, as a strategic project under the Critical Raw Materials Act (CRMA). EU backing through its advisers and funding institutions is expected to accelerate the development of the project. Maniry is located close to the Molo project owned by Canada-based firm NextSource Materials, which started production of jumbo flakes in June 2023. The US government backs Balama project in Mozambique’s northern Cabo Delgado Province, which is operated by Australian company Syrah Resources.
Financing issues: Many graphite projects in sub-Saharan Africa are owned by junior mining companies from Australia, Canada and the UK who depend on external financing to develop them. For instance, two projects in Namibia – Aukam owned by Canadian junior Gratomic, and Okanjande/Okorusu owned by Canadian firm Northern Graphite – have been delayed due to financial issues. In Tanzania, Australia-based Walkabout Resources, who owns Lindi Jumbo, a small but high-quality project, entered voluntary administration in November 2024.
Market challenges: China’s cheap graphite exports have depressed global prices, undermining the commercial viability of developing new graphite mines.
Domestic political risks: In December 2024, Syrah Resources declared force majeure at its Balama project due to protests by a group of local farmers over land resettlement grievances that began in September 2024. Civil unrest expanded and intensified following the country’s disputed October 2024 general election results. The suspension of operations resulted in the company’s default on loans granted by the US government. Operations restarted in May 2025.
Political risks in Madagascar are rising, with deadly protests over recurrent water and electricity shortages prompting President Andry Rajoelina to dissolve the government in September 2025. In Tanzania, President Samia Suluhu Hassan’s administration is intensifying its crackdown on the opposition ahead of the October 2025 general elections.
The world powers’ drive to diversify their strategic raw materials’ supply chain due to escalating geopolitical tensions is likely to favor Africa’s graphite sector over the next decade. However, in the shorter run, China’s export restrictions and tariff wars with the US are likely to cause graphite supply chain disruptions.
China’s export restrictions on dual-use items since December 2024 and the US introduction in July 2025 of a 93.5% anti-dumping tariff on Chinese graphite – bringing the total effective tariff rate for graphite for batteries to 160% – risk translating into higher battery and electric vehicle prices. Higher prices, along with the US withdrawal of tax credits for electric vehicles, threaten to depress demand for electric vehicles and, consequently, demand for active anode material, undercutting investment in new graphite mine production.
Tariffs and export controls alone will not suffice to resolve the problem of an overly concentrated graphite supply chain. Western governments’ active support through financial incentives and public-private collaboration will play a critical role in encouraging domestic battery-grade graphite production and diversification of their graphite supply chains. Given that it takes years to develop a mine or build a processing facility, coordinated and long-term strategic planning, such as the EU backing of designated strategic projects under the CMRA, will be required to boost Western graphite production. Domestic political risks in African countries will further complicate this long-term planning.