GRAPHITE

Natural graphite is classified into three types: amorphous, crystalline flake, and vein. Amorphous graphite is the lowest quality and most abundant. Amorphous refers to its very small crystal size and not to a lack of crystal structure. Crystalline flake graphite is less common and higher quality than amorphous graphite. Flake graphite occurs as separate flakes that crystallized in metamorphic rock, and highquality flake graphite can be four times the price of amorphous graphite. Vein graphite is the rarest, most valuable and highest-quality type of natural graphite. It occurs in veins along intrusive contacts, and it is only commercially mined in Sri Lanka. An additional type of graphite, synthetic, can be produced by heating petroleum coke to about 3,000 °C to convert the carbon to graphite. Graphite has metallic and nonmetallic properties, which make it suitable for many applications. The metallic properties include electrical and thermal conductivity. The nonmetallic properties include high thermal resistance, inertness and lubricity. The combination of conductivity and high thermal stability allows graphite to be used in many applications, such as batteries, electrodes, fuel cells and refractories. Graphite’s lubricity and thermal conductivity make it an excellent material for high-temperature applications because it provides effective lubrication at a friction interface while furnishing a thermally conductive matrix to remove heat from the same interface. High-purity natural and synthetic graphites have played important roles in the emerging nonhydrocarbon energy sector and are used in several new energy applications. In energy production applications, graphite is used as pebbles for modular nuclear reactors and in high-strength composites for wind, tide and wave turbines. In energy storage applications, graphite is used in bipolar plates for fuel cells and flow batteries, anodes for lithium-ion batteries, electrodes for supercapacitors, high-strength composites for fly wheels, phase change heat storage, and solar boilers. In energy management applications, graphite is used in high-performance polystyrene thermal insulation and for silicon chip heat dissipation. These new energy applications use valueadded graphite products such as spherical graphite, expanded graphite and graphene. Production No natural graphite is mined in the United States, but five natural-graphite projects were under development in 2023. In Alabama, South Star Battery Metals Corp. and Westwater Resources Inc. continued development on the BamaStar and Coosa projects, respectively. Both companies were progressing preliminary economic assessments in 2023. In 2023, Graphite One Inc. continued to progress a feasibility study for its Graphite Creek project in Alaska. In Montana, Reflex Advanced Materials Corp. continued development of the Ruby Graphite project, having completed a drill program in late 2023. In New York, Titan Mining Corp. began early exploration of the Kilbourne graphite target. The deposit is located on permitted property where Titan currently operates the Empire State zinc mine. World production of natural graphite in 2023 was an estimated 1.60 Mt compared with 1.68 Mt in 2022. The leading producers of natural graphite in 2023 were China, with 1.23 Mt; Madagascar, 100 kt; Mozambique, 96 kt; and Brazil, 73 kt. These four countries contributed approximately 94 percent of the global natural graphite production. Consumption U.S. consumption of natural graphite decreased by an estimated 5 percent to 76 kt in 2023 from 79.7 kt in 2022. Despite decreased consumption in 2023, U.S. consumption of natural graphite has increased 72 percent since 2019. The major uses of natural graphite in 2023 were batteries, brake linings, lubricants, powdered metals, refractory applications and steelmaking. The major uses of synthetic graphite in 2023 were batteries, electric-motor brushes, electrodes and graphite shapes. A recent and growing area of graphite consumption is that of lithium-ion batteries, owing to increased demand for electric vehicles, portable electronic devices and other uses. Graphite is an essential component of many types of batteries, making up most of the material contained in the anode. Spherical purified graphite (SPG) is the specialized form of graphite used as battery anode material (BAM). SPG is produced from natural flake graphite concentrate, which has been rounded, micronized, purified to 99.95 percent and coated. Most SPG is produced in China. Anode material can be made with natural or synthetic graphite. Some companies combine natural and synthetic to utilize the strengths of each, especially in the electric-vehicle market. Prices Prices for natural graphite largely depend on flake size, size distribution and carbon content. Prices for individual flake mesh sizes were unavailable. Estimated unit values of imports in 2023 were $565/t for amorphous, $1,200/t for flake and $2,500/t for vein graphite from Sri Lanka. According to China customs data, prices for uncoated spherical graphite exported to the United States were about $4,390/t in 2023, and prices for synthetic anode material were about $5,250/t. Foreign trade U.S. trade data from the U.S. Census Bureau were analyzed by the U.S. Geological Survey (USGS). Total U.S. natural-graphite imports decreased by 18 percent in tonnage to 73.5 kt in 2023 from 89.2 kt in 2022, and the value decreased by 16 percent to $157 million in 2023 from $187 million in 2022. The decrease in natural-graphite imports resulted from decreases in quantity and in value of imports from China, Mexico and Madagascar, partially offset by a 136 percent increase in quantity and 127 percent increase in value of imports from Mozambique. Principal import sources of natural graphite, by tonnage, were China (40 percent), Mozambique (26 percent), Canada (10 percent), Mexico (10 percent) and Madagascar (8 percent). Total U.S. synthetic-graphite imports decreased by 18 percent in tonnage to 124 kt in 2023 from 151 kt in 2022, and the value decreased by 9 percent to $575 million in 2023 from $635 million in 2022. The decrease in synthetic-graphite imports were largely driven by decreased imports from China, Mexico and Spain. Principal import sources of synthetic graphite, by tonnage, were China (60 percent), Mexico (15 percent), and Canada and Spain (5 percent each). In 2023, U.S. imports of BAM, combined natural and synthetic, were approximately 39 kt, a decrease of 33 percent compared with approximately 58 kt in 2022. Most of this material came from China, with the rest coming from Japan and the Republic of Korea. Industry news In 2023, two natural-graphite BAM facilities were under construction in the United States. Syrah Resources Ltd. was constructing a plant in Vidalia, LA, and Westwater Resources was constructing a plant in Kellyton, AL. Syrah was expected to begin commissioning of its plant in early 2024. An additional five plants were under early development in the United States. In 2023, two synthetic-graphite BAM facilities were under advanced development. Anovion Technologies began construction at a facility in Bainbridge, GA. The new facility would add an additional 50-kt/a capacity to the current 5-kt/a capacity. In Chattanooga, TN, Novonix Ltd. continued development of a synthetic-graphite anode facility with an initial capacity of 3 kt/a, expanding to 20 kt/a at full capacity. The facility was expected to begin commercial operation in late 2024. The company also advanced plans for a new facility with capacity of 30 kt/a. Both Anovion and Novonix were recipients of U.S. Department of Energy grants through the Bipartisan Infrastructure Law in 2022. In 2023, two companies were awarded grants toward development of their natural-graphite projects. In July, Graphite One was awarded a grant of $37.5 million through the Defense Production Act for its Alaska project. Additionally, in September the company was awarded a $4.7 million grant by the Defense Logistics Agency for the development of a graphite-based fire suppressant. In November, South Star was awarded a grant of $3.2 million through the Defense Production Act to assist in development of its project in Alabama. In October 2023, China announced export controls to take effect on Dec. 1 on certain goods, including flake graphite, BAM (natural and synthetic), expanded graphite and some synthetic-graphite products. Exporters would need to apply for a license, which according to one graphite producer, required export contracts, technical product specifications, and the identity of the end user as well as the specific end use. In November, Chinese exports of flake graphite and BAM increased by 203 percent and 160 percent, respectively, compared to October. In December, after the licensing requirement went into effect, Chinese exports of flake graphite and BAM were 81 percent and 80 percent lower, respectively, than in December 2022. Top recipients of flake graphite in December were Slovenia (29 percent), Russia (18 percent), Germany (11 percent) and Spain (10 percent). Top recipients of BAM (natural and synthetic) in December were the Republic of Korea (51 percent), Poland (16 percent), Hungary (16 percent) and Germany (12 percent). None of the flake graphite or BAM from China was exported directly to the United States in December. Multiple natural-graphite mining projects continued to progress globally in 2023. In June, NextSource Materials Inc. announced first production at its mine in Madagascar. Production capacity was planned to be 17 kt/a, potentially expanding to 150 kt/a in phase two. In Brazil, South Star continued to construct a graphite mine, with first production expected in early 2024. Planned production during phase one was 5 kt/a, increasing to 50 kt/a in phase three. In Tanzania, Walkabout Resources Ltd. continued to develop the Lindi Jumbo graphite mine, expected to begin production in 2024. Upon completion, the mine was expected to have a capacity of 40 kt/a. Graphite production in Ukraine continued to face disruptions owing to the ongoing conflict with Russia, which began in 2022. After the winter season shutdown, production restarted in April but continued to face energy supply disruptions related to the conflict. Prior to Russian military action, graphite production in Ukraine was about 10 kt/a. Outlook Worldwide demand for natural and synthetic graphite is expected to continue increasing as more nonhydrocarbon energy applications that use graphite are developed. Steel production and other types of metallurgical activity, which are important consumers of graphite, are expected to increase as well. Global graphite consumption is expected to increase owing to new technologically advanced applications, such as aerospace applications, fuel cells, graphene, lithium-ion batteries, energy storage and pebble-bed nuclear reactors. The lithium-ion battery industry has created high demand for natural flake graphite. This has led to large increases in exploration and development, with much of it focused on Africa. Projects are also under consideration in Australia, Canada, Finland, Greenland, Kazakhstan, Sweden and elsewhere. References U.S. Geological Survey, 2024, Mineral Commodity Summaries 2024—Graphite (Natural): U.S. Geological Survey, p. 84–85, https://doi.org/10.3133/mcs2024. South Star Battery Metals Corp., 2023, The United States Department of Defense awards multi-million-dollar grant to South Star Battery Metals to support the accelerated expansion of U.S. domestic battery graphite production within the contiguous United States of America: Vancouver, British Columbia, Canada, South Star Battery Metals Corp. news release, November 29, 4 p. (Accessed March 12, 2024, at https://www.southstarbatterymetals.com/ydihapto/2023/11/STS_11_2023_DPAIII_Final.pdf.) Westwater Resources, Inc., 2024, Westwater Resources announces 2023 business and financial updates: Centennial, CO, Westwater Resources, Inc. news release, March 20. (Accessed April 16, 2024, at https://westwaterresources.net/news-releases/2024/03/20/westwater-resources-announces-2023-business-and-financial-updates/.) Graphite One Inc., 2024, Graphite One 2023 year in review: Vancouver, British Columbia, Canada, Graphite One Inc. news release, January 2 (Accessed March 14, 2024, at https://www.graphiteoneinc.com/graphite-one-2023-year-in-review/.) Reflex Advanced Materials Corp., 2023, Update to Reflex Advanced Materials Corp initial drill program at Ruby graphite project: Vancouver, British Columbia, Canada, Reflex Advanced Materials Corp. news release, November 14. (Accessed March 5, 2024, at https://reflexmaterials.com/update-to-reflex-advanced-materials-corp-initial-drillprogram-at-ruby-graphite-project/.) Titan Mining Corp., 2023, Titan Mining announces significant graphite discovery at Empire State mines in upstate New York: Vancouver, British Columbia, Canada, Titan Mining Corp. news release, October 23. (Accessed March 7, 2024, at https://titanminingcorp.com/news/2023/titan-mining-announces-significant-graphite-discovery-atempire-state-mines-in-upstate-new-york-usa/.) Zen Innovations AG, 2024, Global Trade Tracker: Zen Innovations AG database, https://www.globaltradetracker.com. Trade Data Services, Inc., 2024, ImportGenius: Trade Data Services, Inc. database, https://www.importgenius.com. Syrah Resources Ltd., 2024, Quarterly activities report for the three months ending 31 December 2023: Melbourne, Victoria, Australia, Syrah Resources Ltd. news release, January 31. (Accessed October 27, 2023, via https://www.syrahresources.com.au/investors/asx-announcements.) Anovion Technologies LLC, undated, Proven, premium products targeting a full spectrum of battery applications: Chicago, IL, Anovion Technologies LLC. (Accessed March 14, 2024, at https://www.anoviontech.com/anode-products.) NOVONIX Ltd., 2024, Quarterly activities report for the three months ended 31 December 2023: Brisbane, Queensland, Australia, NOVONIX Ltd. news release, January 30. (Accessed March 11, 2024, at https://ir.novonixgroup.com/static-files/69aaebed-0a1d-4803-a195-d2b14132c855.) U.S. Department of Energy, 2022, Biden-Harris administration awards $2.8 billion to supercharge U.S. manufacturing of batteries for electric vehicles and electric grid: Washington D.C., U.S. Department of Energy news release, October 19 (Accessed March 14, 2024, via https://www.energy.gov/articles/biden-harris-administration-awards-28-billion-supercharge-us-manufacturing-batteries.) Ministry of Commerce of the People's Republic of China, 2023, 2023 39 [Announcement no. 39 of 2023 of the Ministry of Commerce and the General Administration of Customs on optimizing and adjusting the temporary export control measures for graphite items]: Beijing, China, Ministry of Commerce of the People's Republic of China news release, October 20. (Accessed October 20, 2023, at http://www.mofcom.gov.cn/article/zwgk/gkzcfb/202310/20231003447368.shtml?from=qcc.) [In Chinese.] Syrah Resources Ltd., 2023, China to implement export controls on graphite products: Melbourne, Victoria, Australia, Syrah Resources Ltd. news release, October 26. (Accessed October 27, 2023, via https://www.syrahresources.com.au/investors/asx-announcements.) NextSource Materials Inc., 2023, NextSource Materials announces first production of Superflake graphite at Molo mine in Madagascar: Toronto, Ontario, Canada, NextSource Materials Inc. news release, June 22. (Accessed March 12, 2024, at https://www.nextsourcematerials.com/nextsource-materials-announces-first-production-of-superflake-graphite-at-molo-mine-in-madagascar.) NextSource Materials Inc., 2023, NextSource Materials announces robust feasibility study results for Molo mine expansion to 150,000 tonnes per annum of Superflake graphite concentrate: Toronto, Ontario, Canada, NextSource Materials Inc. news release, December 12. (Accessed March 13, 2024, at https://www.nextsourcematerials.com/nextsource-materials-announces-robust-feasibility-study-results-for-molo-mine-expansion-to-150000-tonnes-per-annum-of-superflake-graphite-concentrate.) Walkabout Resources Ltd., undated, Lindi Jumbo graphite project: Perth, Western Australia, Australia, Walkabout Resources Ltd. (Accessed March 13, 2024, at https://wkt.com.au/projects/lindi-jumbo-graphite-project.) Volt Resources Ltd., 2023, Successful restart of graphite production at Zavalievsky: Perth, Western Australia, Australia, Volt Resources Ltd. news release, May 8, 3 p. (Accessed March 14, 2023, at https://www.investi.com.au/api/announcements/vrc/191813c0-7a8.pdf.) U.S. Geological Survey, 2023, Mineral Commodity Summaries 2023—Graphite (Natural): U.S. Geological Survey, p. 82–83, https://doi.org/10.3133/mcs2023.

GRAPHITE

Authored by:
Andrew Stewart

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Gold retains key reserve status despite surging bond yields, central bankers say

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Leaders in mining excellence honored by NMA, federal agencies

To view the past issues of the UCA magazine you must be a member of SME/UCA.

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