Securing the supply of graphite for batteries

Surging demand for graphite in energy storage applications has led to concerns about supply chai security for manufacturers and nations globally. Currently, China produces over 92% of graphite for anodes, posing a risk for industries reliant on graphite supply. Here, we systematically assess the costs of producing natural and synthetic battery-grade graphite in the U.S. and China using process-based cost models. We find that production costs in the U.S. are higher than those in China by 100-200%, so scaling production in the short-term will require significant policy support. We use our models to explore opportunities to improve the competitiveness of graphite production outside China, finding that lower financing rates and improved shaping yields can together reduce costs by 25-30%. Further implementing other cost reduction strategies, such as improving process throughput or lowering equipment costs, can achieve 35-40% lower costs. Finally, we discuss how innovative graphite production processes like methane pyrolysis and catalytic graphitization may provide competitive pathways.