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Flake flotationSpheroidisation yieldPurificationCSPG coatingExport controls

It is also the most concentrated supply chain in this entire series, and it gets a fraction of the attention lithium does.

8.1Natural flake, and the yield problem

  • 1 · Mine and float. Flake graphite ore at 5–15 % C → repeated flotation → 94–97 % C concentrate. Graphite is naturally hydrophobic so flotation is easy; but flakes are fragile and must not be broken, so grinding is gentle and staged.
  • 2 · Spheroidisation — the expensive step. Flat flakes are rounded into potato-shaped particles in an air-classifier mill, which raises tap density and lets lithium enter from all directions rather than only at flake edges. Yield is only 30 to 40 per cent. The other 60 to 70 becomes fine graphite powder sold into refractories, lubricants and pencils.
  • 3 · Purification to 99.95 %+. Either thermal at ~2,800 °C, or chemical: SiO₂ + 6 HF → H₂SiF₆ + 2 H₂O, dissolving the silicate impurities. The HF route is cheap and creates a serious effluent problem; the thermal route is clean and enormously energy-hungry.
  • 4 · Coating and carbonisation. Coated with a pitch-derived amorphous carbon layer, then carbonised → CSPG, coated spherical purified graphite. The coating controls SEI formation and first-cycle efficiency, and it is where most of the proprietary know-how sits.
Concentrate 95 % C1000 kgAfter spheroidisation350 kg30–40 % yield — the rest is finesAfter purification340 kg99.95 % CCoated anode (CSPG)350 kgpitch coating adds back a little mass→ fines: refractories, lubricants, pencilsOne tonne of concentrate yields roughly a third of a tonne of anode material.That yield, not the ore price, is why graphite anode economics are so much worse than they look —and why the step has proven so hard to relocate outside China.
Figure 8.1Start with a tonne of concentrate and you finish with roughly a third of a tonne of anode material. Spheroidisation yield is the reason graphite anode economics are so much worse than the ore price suggests, and the reason the step is so hard to relocate.

In plain English

Start with a tonne of concentrate and you finish with roughly a third of a tonne of anode material. That yield, not the ore price, is why graphite anode economics are so much worse than they look — and why the step has proven so hard to relocate.

8.2Synthetic — starting from oil, not rock

Petroleum or coal-tar needle coke, calcined, shaped, then heated to ~3,000 °C in Acheson or lengthwise-graphitisation furnaces — weeks per batch, roughly 30 kWh per kg.

Synthetic graphite is more consistent, longer-cycling and much more expensive. Like aluminium, it is essentially a way of storing electricity in a material.

8.3The most concentrated chain here

Important

The concentration is extreme, and it has increased. When China first introduced graphite export controls at the end of 2023, it held around 60 per cent of mined natural graphite. Rather than triggering diversification, the controls were followed by more Chinese supply, falling prices and Western producers being squeezed out.

China’s share of mined natural graphite has since climbed to roughly 80 per cent, and its grip on the graphite anode market — natural and synthetic combined — now sits near 98 per cent, with more than 95 per cent of global anode processing. Even graphite mined elsewhere generally passes through Chinese plants to become an anode.

8.4The calendar that now runs procurement

8.4.1Status as of mid-2026

In October 2025 China placed lithium-ion batteries, cathode materials and artificial graphite anode materials under dual-use export controls, then suspended that decision in November 2025 following US–China talks.

The suspension runs to 10 November 2026, with a separate measure covering graphite exports to the US running to 27 November 2026. Both are pauses with an expiry date, not repeals — and that calendar is now the single most important date in battery procurement planning.

Quick check: test yourself

1.Why is graphite anode economics worse than the ore price suggests?

Show answer
Spheroidisation yield. Rounding flat flakes into potato-shaped particles recovers only 30 to 40 per cent; the rest becomes fine powder sold into refractories, lubricants and pencils. A tonne of concentrate yields about a third of a tonne of anode material, and that loss sits in the middle of the chain rather than at the mine.

2.Export controls were introduced in 2023 and China’s share went up rather than down. Why?

Show answer
Because the controls were followed by more Chinese supply and falling prices, which squeezed Western producers out rather than pulling investment in. Mined share went from around 60 to roughly 80 per cent, and the anode market — where the real processing know-how sits — is near 98.

3.What does the coating on CSPG actually do?

Show answer
It controls SEI formation and first-cycle efficiency. A pitch-derived amorphous carbon layer is applied and carbonised, and that recipe is where most of the proprietary know-how in anode manufacture sits — which is a large part of why the step is hard to replicate elsewhere.

Chapter summary

Frequently asked questions

Why is spheroidisation the expensive step?+

Because the yield is only 30 to 40 per cent. Flat flakes are rounded into potato-shaped particles in an air-classifier mill, which raises tap density and lets lithium enter from all directions rather than only at flake edges. The other 60 to 70 per cent becomes fine graphite powder sold into low-value markets. Start with a tonne of concentrate and you finish with roughly a third of a tonne of anode material — which is why graphite anode economics are so much worse than the ore price suggests, and why the step has proven so hard to relocate.

How concentrated is the graphite anode chain?+

Extremely, and it has increased. When China first introduced graphite export controls at the end of 2023 it held around 60 per cent of mined natural graphite. Rather than triggering diversification, the controls were followed by more Chinese supply, falling prices and Western producers being squeezed out. China’s share of mined natural graphite has since climbed to roughly 80 per cent, and its grip on the graphite anode market — natural and synthetic combined — now sits near 98 per cent.

What is the difference between natural and synthetic graphite?+

Natural graphite is mined as flake, floated, spheroidised, purified and coated. Synthetic starts from petroleum or coal-tar needle coke, calcined and shaped, then heated to about 3,000 °C in graphitisation furnaces — weeks per batch at roughly 30 kWh per kilogram. Synthetic is more consistent and longer-cycling and much more expensive, and like aluminium it is essentially a way of storing electricity in a material.

What is the current status of Chinese graphite export controls?+

In October 2025 China placed lithium-ion batteries, cathode materials and artificial graphite anode materials under dual-use export controls, then suspended that decision in November 2025 following US–China talks. The suspension runs to 10 November 2026, with a separate measure covering graphite exports to the US running to 27 November 2026. Both are pauses with an expiry date rather than repeals, and that calendar is now the single most important date in battery procurement planning.

Reviewed by

SG

Sahil Goyal

Co-founder, Wingzman

LinkedIn
SG

Sourabh Goyal

Co-founder, Wingzman

LinkedIn

Ore to Vehicle is an original educational series on the battery and EV materials supply chain. Country shares, grades, prices and policy status are approximate, drawn from public reporting as of mid-2026, and move year to year — treat them as orders of magnitude rather than as a ledger, and verify before relying on them commercially.