See Shift to Mined vs. Man-Made Graphite Raises Shortage Risk for EVs: Natural graphite is greener than synthetic, leading auto makers to turn to mines for the mineral by Scott Patterson and Amrith Ramkumar of The WSJ. Excerpts:
"Mining companies are ramping up supplies of critical minerals for rechargeable batteries such as lithium, cobalt and nickel. Graphite, a key battery component, has largely been overlooked.
That is about to change. Some of the world’s biggest auto and battery makers and the U.S. government are racing to secure graphite supplies amid looming signs of shortages of the mineral suitable for batteries. So far graphite prices haven’t reflected the tight supply.
“Graphite always seems to be the forgotten battery material, yet it’s in half the battery,” said Brent Nykoliation, executive vice president of NextSource Materials Inc., which is developing a graphite project in Madagascar. “It’s the largest raw material in the battery.”
Graphite is unusual among materials seen as crucial for the energy transition because it can be man-made as well as mined. Most lithium-ion batteries use synthetic graphite, which is produced from a petroleum byproduct, mostly in China.
But using an energy-intensive, high-emissions process to produce graphite defeats the purpose of the batteries that power EVs and store renewable energy. The production of synthetic graphite can be four times more carbon intensive than that of natural graphite, according to Benchmark Mineral Intelligence, which tracks the battery supply chain.
As battery and auto makers look to reduce carbon emissions in their supply chains, more are looking to natural graphite, analysts say. The problem: The increase in demand is running headlong into a supply shortage. By 2030, natural graphite is projected to have among the largest supply shortfalls of battery materials, with demand outstripping expected supplies by about 1.2 million metric tons, according to Benchmark."
"Turning to supplies in unstable parts of the world has its own issues. Some analysts have raised concerns that the mine in Mozambique is near a conflict area where attacks by Islamic rebels have fueled a humanitarian crisis."
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