1 hr ago

Graphite, Not Lithium, Emerges as Battery Industry's Biggest Choke Point

Graphite is a material used inside the anode of many lithium-ion batteries.

The anode is one part of a battery that helps store and release energy.

China performs much of the processing needed to turn graphite into battery-grade material.

This processing, called graphitisation, requires heating material above 2,800°C.

Because it uses so much energy, access to relatively cheap electricity can help maintain production.

If Chinese production or exports are disrupted, battery makers in other countries could be affected.

Battery demand is expected to grow quickly because of electric vehicles, energy storage, and AI data centres.

LFP batteries are becoming more common because they cost less than some nickel-based batteries.

As battery production expands, countries may need to develop more graphite-processing and anode capacity.

Key facts

Primary use: Graphite is commonly used in the anode of lithium-ion batteries.
Processing stage: Graphitisation converts carbon material into battery-grade graphite.
Processing temperature: Graphitisation requires temperatures above 2,800°C.
Demand in 2025: Global battery demand is estimated at around 1,591 GWh.
FY30 demand projection: Global battery demand could reach 3.5–4.4 TWh by FY30.
Annual growth estimate: DSP estimates battery demand could grow 17–23% annually.
Anode cost share: The anode accounts for around 10–15% of battery-cell costs.
LFP market share: LFP batteries accounted for more than 55% of global EV batteries in 2025, up from 24% in 2021.

businesstoday.in · Just now