A new report has outlined the strategic importance of graphite in the production of batteries for electric vehicles – highlighting “immense potential” for Australia’s industry and economy.
The Australian graphite: A path to a global battery market opportunity report, published by The Commonwealth Scientific and Industrial Research Organisation (CSIRO), Geoscience Australia and Stanford University makes the case for Australia to develop a robust graphite industry to take advantage of growing opportunity.
Data from Geoscience Australia, as of December 2023, ranks Australia eighth in the world for natural graphite, possessing around four per cent of global resource.
However, the report said the lack of large-scale production capabilities for battery-grade graphite could hinder Australia’s potential, with strategic investment and development needed for the country to become a preferred supplier in the global market.
Investing in the processing of graphite across Australia, particularly South Australia, Western Australia and Queensland – where the mineral is found – is said to have a number of benefits.
“The substantial price jump from graphite concentrate to anode materials highlights the economic potential of downstream processing. Developing domestic processing capabilities could add significant value to Australia’s graphite resources,” CSIRO senior research scientist Dr Marzi Barghamadi said.
Market opportunities are also visible, with China currently dominating the downstream processing market for anode materials, at 95 per cent, posing a risk to supply chain stability.
The benefits of this “significant opportunity” go beyond commercial considerations, the report states, with graphite production supporting both environmental and technological advancements.
The report outlines how the integration of renewable energy into graphite processing could help drive down the cost of energy, delivering potentially ‘emissions-free’ material.
With graphite being a critical resource in the production of batteries for electric vehicles, and demand for them increasing, Australia sits at the brink of both an economic and strategic opportunity to secure domestic supply chains and create national resilience.
“The opportunity is here for the graphite industry to contribute to a sustainable and secure energy future,” Barghamadi said.
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