Natural graphite market in Europe

Earlier Report Observations

Between 2018 and 2019, the European natural graphite market expanded by 13% to 203.6 thousand tons. This growth was propelled by rising global demand for lithium-ion batteries, which accounted for about 14% of natural graphite consumption, coupled with environmental inspections and plant closures in China that constrained supply. New mine openings in Africa, such as in Mozambique, began diversifying sources away from China. In 2020, market volume contracted sharply to 157.7 thousand tons. Concurrently, China's increasing adoption of electric arc furnaces raised demand for graphite electrodes, influencing global supply dynamics.

Recovery began in 2021, with market size rising to 170.0 thousand tons, and continued in 2022 to reach 185.7 thousand tons. This rebound was fueled by accelerating demand from electric vehicles and renewable energy sectors worldwide, which kept graphite consumption on an upward trajectory. Prices for natural graphite remained relatively stable during this period despite competition from synthetic alternatives.

In later years, the market saw price adjustments, with natural graphite prices in China declining slightly in early 2023 due to softened global demand. The European Union adopted the Critical Raw Materials Act in March 2024 to secure supply chains for graphite and other critical materials. Additionally, the Lindi Jumbo project launched in Europe, aiming to add thousands of tons of natural graphite production, while African mines, particularly in Madagascar, gained strategic importance.

Production natural graphite in Europe

In kind, 2017-2020, t

Top producers of natural graphite, 2017-2020

World map of production of natural graphite, 2017-2020

In 2018, Europe's natural graphite production reached its lowest point at 80,970 tonnes. The following year, in 2019, output peaked at 98,346 tonnes, marking a significant 21.5% increase. By 2020, production had declined to 89,336 tonnes, representing a 9.2% drop compared to 2019. Over the four-year period from 2017 to 2020, overall production grew by 3.1%, which translates to an average annual growth rate of 1.0%.

Annual dynamics of production in Europe in kind, 2017-2020, t

In value, 2017-2020, M $ US

Europe's natural graphite production value has been declining for two consecutive years. In 2018, production reached its highest value at $922.6 million, showing a modest 1.2% increase from the previous year. By 2020, the value had fallen to $636.8 million, a substantial 23.6% decrease compared to 2019. Looking at the broader period from 2017 to 2020, production value dropped by 30.2%, equivalent to an average annual decline of 11.3%.

Annual dynamics of production in Europe in value, 2017-2020, M $ US

Exports natural graphite from Europe

Exports in kind, K t

In 2019, Europe's natural graphite exports hit their lowest point at 21.9 thousand tonnes, experiencing a sharp 39.6% decline. The following year, in 2020, exports rebounded to 36.3 thousand tonnes, showing a strong 65.6% increase compared to 2019. Over the 2017-2020 period, exports grew by 6.0%, with an average annual growth rate of 2.0%.

Annual dynamics of product's exports from Europe in kind, 2017-2020, K t

Between 2017 and 2020, Europe's natural graphite exports in volume terms were distributed across a wide range of markets. Turkey accounted for 3.2% of exports, South Korea for 3.1%, and China for 1.6%. Together, these three countries represented just 8.0% of total export flows, while the remaining 92.0% was shared among numerous other trading partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Europe in kind, 2017-2020

Exports in value, M $ US

Europe's natural graphite export value has been declining for two consecutive years. In 2018, exports reached their highest value at $70.6 million, showing a 1.4% increase. The following year, in 2019, exports dropped by 4.0%. By 2020, export value stood at $65.5 million, marking a 3.3% decrease compared to 2019. Over the 2017-2020 period, export value decreased by 5.9%, equivalent to an average annual decline of 2.0%.

Annual dynamics of product's exports from Europe in value, 2017-2020, M $ US

From 2017 to 2020, Europe's natural graphite exports in value terms were spread across a diverse set of partner countries. South Korea accounted for 7.2% of export value, China for 4.7%, and Turkey for 2.5%. Combined, these three markets represented just 14.4% of total export flows, with the majority distributed among many other countries.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Europe in value, 2017-2020

Imports natural graphite to Europe

Imports in kind, K t

Europe's natural graphite imports in volume terms have been declining for two consecutive years. In 2018, imports reached their highest point at 135.2 thousand tonnes, showing a 9.8% increase. By 2020, imports had decreased to {value_last_year} thousand tonnes, representing a 17.6% reduction compared to the previous year. Over the 2017-2020 period, imports decreased by 14.9%, with an average annual decline rate of 5.2%.

Annual dynamics of product's imports to Europe in kind, 2017-2020, K t

Between 2017 and 2020, China was the dominant source for Europe's natural graphite imports in volume terms, accounting for 31.6% of total imports. Mozambique followed with 10.6%, and Brazil with 8.7%. Together, these three countries represented 51.0% of total import flows during this period.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Europe in kind, 2017-2020

Imports in value, M $ US

Europe's natural graphite import value has been declining for two consecutive years. In 2018, imports reached their highest value at $176.0 million, showing a substantial 25.5% increase. By 2020, import value had fallen to $151.4 million, marking an 11.1% decrease compared to the previous year. Despite these recent declines, over the broader 2017-2020 period, import value actually increased by 7.9%, equivalent to an average annual growth rate of 2.6%.

Annual dynamics of product's imports to Europe in value, 2017-2020, M $ US

From 2017 to 2020, Europe's natural graphite imports in value terms came from a wide variety of partner countries. China accounted for 25.1% of import value, Brazil for 10.7%, and Japan for 8.4%. Together, these three countries represented 44.2% of total import flows during this period.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Europe in value, 2017-2020