Top 10 auto groups by graphite consumption
A record 209.8 kilotonnes of graphite were deployed onto roads in newly sold EVs during Q3 2024, a 25% jump compared to the same quarter last year.
The globe’s top EV maker, BYD Company Ltd, increased deployment of the anode material by 33% year-over-year to 40.6 kilotonnes opening a wide lead to no 2 Tesla.
During the same period, Tesla upped graphite deployment by a more modest 12% to 30.9 kilotonnes. Together, the top two OEMs were responsible for more than a third of total global deployment, according to data from the Adamas Intelligence Battery Metals Intel Platform.
The third largest consumer during the quarter was Geely (owner of Zeekr, Polestar, Volvo and other brands) which deployed 16.2 kilotonnes, a 64.3% jump over Q3 2023.
Trumping Geely’s growth, however, was Chery, another Chinese OEM with an extensive stable of brands including the hot-selling Luxeed, a partnership with telecoms giant Huawei. Chery’s graphite deployment in Q3 2024 came in a 5.2 kilotonnes, up nearly six-fold year-over-year, earning it tenth place among incumbents.
Grip on graphite
Graphite is used as an anode material in virtually all EV batteries with many cell manufacturers using a combination of natural and synthetic varieties.
China produces 70% of the world’s graphite but crucially is home to some 90% of global graphite refining capacity.
Last month, Beijing announced further tightening of export controls on so called dual-use (military and industrial) materials, including graphite, in response to the incoming Trump administration’s threats of new tariffs.
China will not limit exports of the material per se, but rather will mandate that exporters first obtain a permit – largely mirroring what is already in place in the nation for rare earths.
For Beijing, this will enable greater oversight of its graphite trade and allow it to restrict flows to certain entities should it choose to do so.
In cognizance of China’s dominance, in May this year carve-outs for graphite were made in the provisions of the US Inflation Reduction Act surrounding ‘foreign entities of concern’ (FEOC) directed mainly at China and Russia.
The Dept of Energy deemed graphite an “impracticable to trace” mineral meaning batteries produced using graphite from an FEOC will still be eligible for IRA tax credits until January 2027.
