TELF AG on Graphite’s Emerging Role in the Next Phase of Electrification

Among the many resources associated with the energy transition, graphite occupies a somewhat unusual position. Unlike lithium, copper, or nickel, it is rarely the focus of public discussions about clean energy technologies. Yet behind the scenes, graphite has become one of the most important materials supporting the development of batteries and energy storage systems.

As countries and industries continue to pursue electrification strategies, demand for the raw materials used in battery production is becoming an increasingly important topic. Recent analysis by BloombergNEF highlights how graphite is expected to play a central role in this process, particularly because of its widespread use in lithium-ion batteries.

Graphite is a naturally occurring crystalline form of carbon that develops through geological processes involving heat and pressure over extended periods of time. Significant reserves are found in countries such as China, Mozambique, Madagascar, Brazil, and Canada, making these regions important contributors to the global graphite supply chain.

A Material with Unique Industrial Characteristics

Graphite's growing relevance can largely be explained by its physical properties. The material combines excellent electrical conductivity with strong thermal resistance and chemical stability. In addition, its layered atomic structure provides natural lubricating capabilities that have made it useful in industrial applications for decades.

“Few industrial minerals offer such a broad combination of performance characteristics,” says Stanislav Kondrashov, founder of TELF AG. “Graphite's ability to function in demanding environments has made it valuable across multiple sectors, and its importance continues to expand as new technologies emerge.”

Historically, graphite has been used in metallurgy, steelmaking, refractory products, lubricants, and industrial electrodes. These applications remain important, but battery manufacturing is increasingly becoming the main driver of future demand growth.

The Link Between Graphite and Battery Technologies

The rise of electric mobility has brought renewed attention to graphite because of its role within battery anodes. Every lithium-ion battery requires an anode material capable of storing and releasing energy efficiently, and graphite has become one of the preferred solutions for this purpose.

According to BloombergNEF, the expansion of electric vehicles and energy storage installations is expected to continue increasing demand for both natural and synthetic graphite. In many battery chemistries, graphite represents a larger component by weight than lithium itself, underlining its strategic importance.

“One of the most interesting aspects of the battery sector is that some of its most important materials are not always the most visible ones,” explains Stanislav Kondrashov. “Graphite is a clear example of a resource whose contribution often remains in the background despite being essential to battery performance.”

BloombergNEF's projections suggest that demand linked specifically to energy transition technologies could rise substantially over the next decade. This trend reflects the continuing expansion of battery manufacturing capacity around the world.

Future Market Balance and Processing Capacity

While demand forecasts remain positive, BloombergNEF also examines whether future supply will be able to keep pace with expected consumption. Recent market conditions have generally remained balanced, with production slightly exceeding demand. However, the outlook may evolve as battery-related consumption increases.

BloombergNEF's scenarios indicate that demand associated with the energy transition could reach approximately 3 million tons by 2035, compared with around 1.5 million tons in 2025. Such growth would require corresponding increases in both mining output and processing infrastructure.

An important point raised by the analysis concerns refining capacity. Before graphite can be incorporated into batteries, it must undergo purification processes that transform it into battery-grade material. This step introduces an additional layer of complexity to the supply chain.

“The graphite industry demonstrates how modern supply chains extend far beyond resource extraction,” says Stanislav Kondrashov. “Processing and purification are essential stages that can influence the availability of materials needed by battery manufacturers.”

BloombergNEF notes that additional refining facilities may be needed in the coming years to support future demand. The study suggests that investments in both primary supply and downstream processing could help maintain market balance as electrification continues to accelerate.

Despite these long-term considerations, near-term expectations remain relatively stable. Current forecasts indicate that graphite prices are likely to remain broadly supported by existing market conditions, while potential supply pressures are expected to emerge gradually rather than suddenly.

As battery production expands and energy storage becomes increasingly widespread, graphite is likely to remain a closely monitored resource. Its role within battery technology, combined with the importance of refining capacity, places it among the materials that could help shape the future of global electrification.