 Securing the supply of graphite for batteriesKaran Bhuwalka, Hari Ramachandran, Swati Narasimhan, Adrian Yao, Julia Frohmann, Leopold Peiseler, William Chueh, Adam Boies, Steven J. Davis and Sally Benson Abstract: The increasing demand for graphite in batteries, particularly for electric vehicles, has led to concerns around supply chain security. Currently, over 92% of global anode material is produced in China, posing a geopolitical risk for other countries reliant on graphite supply for domestic industries. This paper assesses the costs of producing battery-grade graphite (natural and synthetic) in the US and China using process-based cost models. We find that production costs in the US significantly exceed those in China due to higher capital intensity and input costs. Our analysis reveals that a majority of modeled projects in the US are not competitive at current market prices. We identify key cost drivers, including capital costs, economies of scale, and input material prices, and explore pathways to improve the competitiveness of US graphite production, such as supportive financing and process innovation directions. The analysis of conventional graphite production costs at scale also informs ceiling costs for alternative, promising pathways such as methane pyrolysis and catalytic graphitization. This study highlights the challenges and trade-offs in building a diversified graphite supply chain and informs policy and investment decisions. Date: 2025-03, Revised 2025-03 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2503.21521 Access Statistics for this paper More papers in Papers from arXiv.org |
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