Graphite has been a cornerstone in the arts world, where its first use dates back to cave wall illustrations in primitive times, or even in the decorative processes of Egyptian pottery.
As society continues to evolve to meet modern technologies, graphite has seen a similar shift beyond its original illustrative purposes and into the electrified world.
With pressing climate change matters and the globe advocating for sustainable emission outputs, the graphite market is expected to boom with demand for lithium-ion batteries.
Alongside diamond, graphite is a naturally occurring form of pure carbon, typically presenting multiple layers of graphene bonding as flakes.
Graphite One (TSX-V:GPH) is one of five companies to have a mining project listed on the FAST-41 Dashboard, following the completion of its Feasibility Study at Graphite Creek in Alaska, which received $37 million in funding from the Department of Defense, under the Defense Production Act grant.
The Fixing America’s Surface Transportation Act was enacted on 4 December 2015. Title 41 of that act FAST-41 established new coordination and oversight procedures for infrastructure projects being reviewed by federal agencies.
The company is now looking towards building an anode manufacturing plant in Ohio to stabilise graphite production in the US, following interest from the EXIM Bank for $325 million in funding.
“Graphite is simply too versatile a material – it’s conductive, it’s light-weight, heat- and corrosion-resistant”
CEO Anthony Huston tells this publication that while the World Bank originally projected a 494% increase to graphite demand between 2020 and 2040, the world is proving a more moderate shift to electrification, which could still see growth up to 400% for the commodity.
“Graphite is simply too versatile a material – it’s conductive, it’s light-weight, heat- and corrosion-resistant,” Huston says.
“It’s an established industrial lubricant, national defense applications, including aircraft, submarines, ships and missiles click here and an essential ingredient in the technologies we depend on today, from our cell phones and laptops and now the AI power farms and energy storage systems – everything that defines our modern lives. None of it happens without graphite.”
In its June 2025 report, the Resources and Energy Quarterly predicts after an expected 20% price rise in 2025, the cost of critical minerals will remain stable through 2027.
Previously, the Department of Industry, Science, and Resources reported that clean energy will account for 54% of Australia’s graphite demand, due to its use in lithium battery anodes, outweighing traditional and defence uses in foundry applications, high-temp lubricants, and composite materials.
Graphite is a key component in battery electric vehicles, and a majority of plug-in hybrid and hybrid electric vehicles, accounting for between 10-20% of its lithium-ion batteries weight according to Aqua Metals (NASDAQ:AQMS), a lithium battery and clean metals recycler.
The electric vehicle sector alone is already reaching new heights, as the Australian Automobile Association reports a 2.84% increase in electric or semi-electric vehicles in the first quarter from its previous total of 27.32%.
The market is expected to streamline at a compound annual growth rate (CAGR) of 6.9% ahead of this global shift towards clean energy, bolstering from US$8.32 billion in this year to US$13.35 billion ($20.40 billion) by 2032, as reported by Mining.com.au.
Fight for graphite
Recent geopolitical tensions between the US and China have halted exportation for a large portion of Chinese graphite, immediately affecting North America’s access to the commodity.
Huston adds that this international conflict will reshape the future of trade for the US, with graphite considered essential to national defence under the Defense Production Act Title III.
“What that tells me is that in terms of global trade policy and national security, graphite is on a much shorter list. Maybe we should call them ‘super-criticals’ – where the US simply cannot be 100% import-dependent with China the leading global graphite producer,” Huston tells Mining.com.au.
As the world leader for graphite production, China dominates the market amassing 74% of the total supply chain, according to lithium ion battery market publisher, Benchmark Source.
Hosting 230 mining claims over an area of 12,620 hectares in Québec, E-Power Resources’ (CSE:EPR) Tetepisca Property is one of the few graphite projects under development in the region, with the Lac des Iles Mine by Northern Graphite (TSX-V:NGC) being the only active graphite producing mine in North America.
CEO James Cross tells Mining.com.au that retail investors in North America and Europe seem to be unaware of the “monumental” split in the graphite market, while the Australian market is starting to catch on.
“The opportunity to buy upstream graphite shares at rock bottom prices is still there for Australian investors willing to invest in Canada, and for North America and European retail investors who are prepared to ‘front-run’ the industrial players who will ultimately have to own our project,” Cross says.
“For the industrial players, the risk is no longer overpaying for graphite, but instead, being left without it, which would collapse their entire manufacturing base.”
Natural Resources Canada reports Canada exported a combined $32 million worth of natural and synthetic graphite. Its primary focus is to the US after a 23% increase in production to around 1.6 million tonnes from the previous year.
“The graphite market is beginning to split into two. A new market, much higher-priced, is developing for Western-sourced graphite, to reduce supply chain and geopolitical risk,” Cross adds.
While the company currently has crews on field at Tetespisca researching its prospective future, Cross adds that E-Resources itself is not intending on progressing the property into production.
“The property is already recognised by Industry and Governments as one of only 10 significant North American graphite projects that can have any type of impact on the homegrown supply deficit,” Cross tells Mining.com.au.
“As a company, we are only interested in graphite from surface to a maximum of 100m because North American industry needs graphite now, rather than later.”
Looking beyond China
Down in the southern hemisphere, although trade with China is booming and business as usual, Australia is still looking for a way to limit its reliance on graphite exportation.
Australia is listed as the 47th largest importer of the commodity, reeling in $787,000 worth of graphite in 2023, with $243,000 coming solely from China, as recorded by the Observatory of Economic Complexity.
Geoscience Australia notes in 2017 Australia’s resource total of 7.1 million tonnes of natural graphite represented 3% of the world total at seventh place.
Lincoln Minerals (ASX:LML) contributes to Australia’s JORC-compliant ore reserves of 1.05 million tonnes graphite. It has the Kookaburra Gully Project in South Australia, the nearby Uley Project, and the McIntosh Project in Western Australia in its portfolio.
Located just 35km north of Port Lincoln in the Eyre Peninsula, Kookaburra Gully Project contains a measured, indicated, and inferred resource of 12.8 million tonnes at 7.6% total graphite content.
CEO Jonathon Trewartha says amid the global graphite market expansion, Australian investor interest remains somewhat subdued from the production overcapacity of synthetic and natural graphite in China.
“Governments have recognised graphite’s strategic importance in battery supply chains, and have been primary sources of capital while public markets await better graphite pricing which is expected in coming years,” Trewartha tells this news service.
“The past quarter has seen increasing focus on domestic, secure sources of critical minerals, including graphite, prompting renewed capital flows into quality development-stage projects.”
Re-electing Labor into the federal government during Q2 2025 is unlocking a $1.2 billion investment into a strategic reserve, including an additional $7 billion into production tax credits to support Australia’s push into critical minerals.
Lincoln is looking to jump onboard with the country’s demand, currently progressing its Kookaburra Gully Project towards a Feasibility Study.
“The project is well-placed to align with expected market shortfalls in graphite supply from 2027 onwards and ongoing battery test work will also likely demonstrate the overall attractiveness of the project’s output for use in EV and related applications,” Trewartha says.
Australia and the wider globe are preparing to accommodate local supply of graphite as the market continues to evolve to modern day demands.
Moving into Q3 2025 will see explorers, producers, and investors alike continue to expedite production outside of China.
Write to Maddison Elliott at Mining.com.au
Images: Mining.com.au, E-Power Minerals & Lincoln Minerals
