2024-08-19 09:30:30
Included on the European Union’s list of critical raw materials, graphite is a key element in the manufacture of batteries for clean mobility. Ifri has published a note in which it provides a global overview of the production of this mineral substance and the challenges for the EU related to securing its supply.
While lithium has been on the European Union (EU) list of critical raw materials since 2020, graphite has been on the list well before that, since 2011. Less well-known, it is nevertheless essential for the manufacture of lithium-ion electric batteries. As proof, a Tesla Model S car contains more of it, with an estimated quantity of 54 kg. In a note1, Ifri (French Institute of International Relations) provides a global overview of the production of this mineral substance and takes stock of the strategy of the EU, which imports nearly 97% of its needs, in order to secure its supply.
In a context where global demand for the mobility sector could more than double by 2040 according to the IEA (International Energy Agency), the market is currently dominated by China, which extracts 77% of the world’s natural graphite. But this country has implemented measures to control its exports and its dominance is not without certain vulnerabilities, as Raphaël Danino-Perraud, associate researcher at the Ifri Energy and Climate Center and author of the note, points out: “Production from graphite mines located in northern China suffers from harsh winters. These mines are often shut down for more or less long periods. Added to this are the negative impacts of graphite mining, both on the environment and health.”
The EU can also turn to East African countries, whose production is increasing but remains fragile. “Alongside the historic producer Madagascar, Mozambique became a graphite producer in 2015 and Tanzania in 2018.observes Raphaël Danino-Perraud. CThe three countries are trying to develop not only their mining resources, but also the entire sector with varying degrees of success, with local and regional geopolitical contexts remaining delicate. Brazil and India are also key players in the making, with the former, for example, aiming to gain momentum in the battery materials sector.
Significant production of synthetic graphite in Europe
In particular, through the CRM Act (Critical Raw Materials Act), the EU has set itself the objective of extracting 10% of the graphite consumed in Europe on European soil by 2030. Currently, it has little or no mining capacity, but two projects are underway in Sweden with the reopening of one mine and the opening of another. It is obvious that the European mine, especially Swedish, will not be able to cover all the graphite needs of the industry, writes the Ifri researcher. However, it is necessary for the exploration campaigns currently underway in France and Europe to look for graphite in order to have reserves to exploit if necessary.
The Twenty-seven can also count on significant domestic production of synthetic graphite to reduce their heavy dependence, particularly in Austria and Germany. This substance was also added to the list of critical materials in November 2023. To increase the volumes produced, the Norwegian company Vianode received 90 million euros last year from a European fund to build a synthetic graphite production plant. More broadly in Europe, some countries such as Switzerland and Ukraine are also producers of synthetic graphite.
The EU has also set itself the goal of refining 40% of graphite and recycling 25%. According to Raphaël Danino-Perraud, “The recycling of graphite, its technical feasibility and the financial profitability of the processes must be carefully studied, so that secondary production can contribute more widely to supplies.”
It is by adopting a strategy of diversification of its supply chains that the EU will be able to secure its needs. In addition, a specific issue is being played out around coated spherical graphite, used in the manufacture of battery anodes intended for clean mobility. For the Ifri researcher, it is necessary to develop the key link in its production, because this product has the particularity of being ” the most industrially and technologically sensitive.”
1 Raphaël Danino-Perraud, “Graphite, a European issue of strategic autonomy for clean mobility”, Ifri Briefings, Ifri, June 20, 2024
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