Industrial Minerals


Supply Situation Report: Graphite demand soars above pre-crisis levels

April 2011

by Jessica Roberts

The global graphite market is enjoying resurgence in demand, with levels now reportedly surpassing those prior to the 2008 recession

Keywords: graphite, lithium-ion batteries, electrodes



Skaland Graphite’s operations in Norway. The company
is an emerging producer of flake grades


SUPPLY SECURITY

The global graphite market is enjoying resurgence in demand, with levels now reportedly surpassing those prior to the 2008 recession. Producers are seeing “real business” returning to the market this year, after a period of restocking in 2009 and 2010 which artificially drove demand and prices for the lubricant and refractory mineral.

China is the world’s largest producer of graphite with an estimated output of 1-1.2m. tpa in 2009. The majority of graphite mining is centred on Heilongjiang in the north-east and Shandong in east China. The country’s producers have a joint capacity of about 1.6m. tpa with the largest of these, Jixi Liumao Graphite Resource in Heilongjiang, accounting for 90,000 tpa (see Table 1).

As much of China’s graphite supply is in the north of...