GRAPHITE (C (GR))
CRITICAL RISK
Overview
A crystalline carbon allotrope and the only non-metal that conducts electricity. Graphite is the mandatory anode material in every lithium-ion battery and is essential to battery storage systems, industrial manufacturing, nuclear technologies, and advanced energy infrastructure.
Strategic importance
Every lithium-ion battery requires a graphite anode. Military drones, soldier power systems, autonomous platforms, grid-scale storage systems, and vehicle electrification are all directly exposed to graphite supply chain risk. Battery-grade graphite processing has become one of the most strategically concentrated parts of the global energy transition.
Risk score
95/100
Primary use cases
Global supply chain map
Key stats
Known reserves~320M tons reserves. China dominates natural and synthetic graphite production; ~90% of battery-grade anode processing.
# of producing countries5
Global production (2023)—
China share of refining—
Export controls—
Producing countries
Defense & flow
Defense capability exposure
| Capability area | Exposure level | Score |
|---|---|---|
| Drone & Autonomous Systems | CRITICAL | 5 |
| Military Battery Systems | CRITICAL | 5 |
| Soldier Power Systems | HIGH | 4 |
| Strategic Energy Infrastructure | CRITICAL | 5 |
| Industrial Defense Manufacturing | HIGH | 4 |
| Nuclear Infrastructure | HIGH | 4 |
Strategic impact
Graphite is foundational to all lithium-ion battery technologies and therefore directly impacts military electrification, autonomous systems, strategic energy storage, and industrial manufacturing. A disruption to graphite refining or battery anode production would affect drone manufacturing, electric military vehicles, grid resilience systems, and broader industrial production capacity. Because there is currently no commercially scalable substitute for graphite anodes in lithium-ion batteries, the strategic dependency is severe.
Supply chain control
China
Dominates natural/synthetic graphite processing and battery-grade anode material.
Risk indicators
- China controls ~65% of natural graphite and ~90% of anode processing
- China imposed export controls on graphite in October 2023
- 2023 controls are part of a coordinated Chinese minerals strategy
Risk & challenge analysis
China dominates both natural and synthetic graphite supply chains and maintains overwhelming control of battery-grade anode processing capacity. Even graphite mined outside China is frequently shipped to Chinese facilities for purification and conversion into anode materials. China's October 2023 graphite export controls demonstrated its willingness to use mineral supply chains as geopolitical leverage against Western industrial and defense ecosystems.
Strategic insight
The graphite export restrictions announced in 2023, alongside gallium and germanium controls, suggest the emergence of a coordinated Chinese strategy centered on critical mineral leverage rather than isolated trade actions. Western efforts to establish domestic anode processing capacity remain in early stages and are unlikely to offset Chinese dominance in the near term.
Value chain — key companies
UPSTREAM
Extraction & mining
- Syrah Resources
- Northern Graphite
MIDSTREAM
Refining & processing
- BTR New Material
- Shanshan Technology
DOWNSTREAM
Manufacturing & end use
- CATL
- Panasonic
- Tesla supply chain
◎
Key chokepoint
Battery anode processing
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Intelligence metadata