Although the EV industry has focused much on supply concerns for lithium, nickel, and cobalt, graphite is another critical material that may be just as challenging. The anode material accounts for a third of total demand and currently costs about a tenth of what lithium does. It’s also more challenging to secure since it is mined only in a handful of countries and is used by many other industries, including steel-making, electronics, and electric power generation. As a result, it doesn’t attract the same level of attention from investment analysts and investors.
Nonetheless, graphite is a crucial ingredient in EV batteries and battery electrodes, and its production can be affected by the same factors. As the market for EVs grows, so will demand for the anode material, which is a critical factor in determining the capacity of battery cells and their longevity. That means companies producing natural and synthetic graphite for EV battery makers must be ready to ramp up output as the sector evolves.
The good news is that, unlike the other rare earth minerals, there are several potential suppliers of synthetic graphite for EV batteries. Many of these private firms are in the early development and testing stages. Still, some have already secured partnerships with notable EV battery manufacturers, including Panasonic Corp., LG Chem Ltd., and SK Innovation Co. Ltd. Some even aim to produce their anode material and reduce their reliance on foreign suppliers.
Synthetic graphite is made from a petroleum byproduct called needle coke that’s put through a process known as carbonization. The resulting product has a few advantages over natural graphite, including lower price and higher expansion performance during charge and discharge cycles. But carmakers concerned about their green credentials are expected to seek natural flake graphite, considered more environmentally friendly.
Many startups aim to make it easier to source the material by making it themselves. For example, Estonian startup Up Catalyst is working on a production plant that uses renewable energy to transform carbon dioxide into pure graphite and other advanced materials for EV batteries. It would use molten salt and a reactor to break the molecules of CO2 into carbon and oxygen and then purify it with water.
The company says it can produce up to a tonne of high-purity natural graphite daily. Its samples have been sent to a US government lab for testing, and the firm is also cooperating with Sunrise New Energy, a Chinese anode-material maker.
Other companies are seeking to reduce their reliance on traditional graphite by using different types of carbon to make anode materials for EV batteries. Finnish forest products giant Stora Enso is working on a process that creates anode material from lignin, a polymer that gives trees their stiffness and is usually burnt to generate heat in paper-making. The company is experimenting with different heat and mechanical treatments to determine the best results.
