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Two Trends in Graphite for Batteries Are Driving Up Prices

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The Cathode Type Determines the Graphite Ratio

Jon Jacobs, Chief Commercial Officer of the U.S.-based mineral resources developer Westwater Resources, recently stated: "These Chinese companies cannot continue selling graphite at their current prices, or they will go bankrupt!" If the Chinese companies were to exit the market—and according to Jacobs, they will—the price difference between the materials would return. Jacobs also believes that the importance of natural graphite will grow due to the evolution of battery technology. Batteries are typically made from a blend of both graphite variants, allowing some advantages of both to be utilized. For instance, the cathode type in the battery determines the ratio of natural to synthetic graphite. A nickel-cobalt-manganese cathode (NCM), commonly used in premium electric vehicles with longer ranges, typically consists of a "fifty-fifty" mixture.

Natural Graphite Approaches Synthetic Graphite

And lithium iron phosphate cathodes (for LFP batteries), which have a lower energy density but a longer lifespan compared to NCM cathodes, typically consist of a mix of 70 percent synthetic and 30 percent natural graphite, according to Jacobs. However, recent advancements in natural graphite production have yielded more uniform and porous graphite, enabling natural graphite to function similarly to synthetic material. As a result, an increasing number of battery manufacturers are tending to use a higher proportion of natural material. Jacobs does not believe that LFP batteries will ever be able to fully replace synthetic graphite. However, he expects the mix ratio to shift in the same direction as with NCM cathodes.

Synergy Effects between Westwater and International Graphite ...

Westwater now plans to begin production at a mine in Coosa County, Alabama, in 2029. A processing facility is set to go into operation beforehand. The fear that tariffs could appear one day, disappear the next, and return again highlights the advantages of Western supply chains in a market dominated by China. International Graphite in Western Australia, as well as through a joint venture with Alkeemia in Europe, is also working on such Western supply chains. The deal with Wogen, however, is considered groundbreaking. International Graphite CEO Andrew Worland stated: "Wogen has extensive experience in the global graphite supply chain and is strongly represented in all major markets!" The site in Collie is therefore expected to benefit directly from Wogen's expertise in procurement, trade, logistics, and marketing. This is viewed as an important step in International Graphite's strategy to build partnerships with market leaders. The growing importance of natural graphite for batteries and the generally increasing demand for this type of carbon are encouraging signs.

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