Graphite Market Sees Strategic Shifts Amid New Innovations and Regional Dynamics

The Graphite Market is undergoing notable transformations driven by technological advancements, geopolitical developments, and strategic deals across key regions. The critical defense applications, graphite’s role is expanding across sectors.

Latest Developments (2024–2025): Energy Security, Defense, and Supply Chain Localization

One of the most significant developments in 2025 came from China, which revealed its new "graphite bomb”.

Meanwhile, companies in the United States are focused on strengthening domestic graphite supply chains. In July 2024, Lucid Motors announced a new supply agreement for graphite materials, aimed at securing local sources for lithium-ion battery production.

Mineral Commodities Ltd has provided an update regarding the sale of its Skaland Graphite Project, announcing that its subsidiary, MRC Graphite Norway Pty Ltd, has signed a binding agreement with Norge Mineraler Holding AS to proceed with the transaction.

Lucid Highlights Importance of Domestic Supply Chain in Advancing U.S. Innovation

“A robust supply chain for critical materials within the United States strengthens our economy, enhances our resilience against external market forces, and aligns with our goal of lowering the carbon footprint of our vehicles,” stated Marc Winterhoff, Interim CEO of Lucid. “These partnerships further demonstrate our dedication to supporting American innovation and manufacturing through localized sourcing.”

Summary of Lucid’s Graphite Supply Agreements for U.S. Battery Supply Chain

Mineral Commodities Ltd Advances Skaland Graphite Project Sale with Binding Agreement

Mineral Commodities Ltd has provided an update on the sale of its Skaland Graphite Project, announcing that its subsidiary, MRC Graphite Norway Pty Ltd, has entered into a binding agreement with Norge Mineraler Holding AS for the transaction. Despite some delays, Norge Mineraler has made several non-refundable payments to cover costs already incurred and to support ongoing operations at Skaland, reaffirming its commitment to finalize the transaction by July 31, 2025. This development marks an important step for Mineral Commodities Ltd as it advances its strategic objectives in the graphite sector, with potential implications for its market position and stakeholder interests.

Regional Overview of Key Graphite Developments

1.  China: Military and Strategic Advancements

• In 2025, China announced the development of a new “graphite bomb,” marking one of the most significant defense-related graphite innovations of the year.

• This development reflects China’s focus on using graphite in military applications, particularly in advanced weaponry.

2.  United States: Focus on Domestic Supply Chain and EV Sector

• U.S. companies are increasingly prioritizing the creation of a domestic graphite supply chain to reduce dependence on imports and secure materials for critical industries like electric vehicles (EVs).

• Lucid Motors announced in July 2024 a multi-year agreement to source graphite materials for lithium-ion battery production:

  • Natural Graphite: Sourced from Graphite Creek, Alaska (starting 2028, via Graphite One).

  • Synthetic Graphite: Sourced from a proposed facility in Warren, Ohio (starting 2028).

  • Additional Supply: Syrah Resources will provide natural graphite from its facility in Vidalia, Louisiana (starting 2026 for three years).

• These agreements aim to:

  • Strengthen U.S.-based graphite supply chains.

  • Support local manufacturing and innovation.

  • Ensure supply for critical battery components.

• Lucid Motors’ leadership has emphasized the importance of a resilient, localized supply chain for both economic and environmental benefits.

3.  Norway: Strategic Asset Transactions in Graphite Sector

• Mineral Commodities Ltd (MRC), through its subsidiary MRC Graphite Norway Pty Ltd, is progressing with the sale of the Skaland Graphite Project in Norway.

• A binding agreement has been signed with Norge Mineraler Holding AS to complete the transaction.

• Despite delays, Norge Mineraler has made non-refundable payments to support operations at Skaland and plans to finalize the sale by July 31, 2025.

• The deal is seen as a strategic move for MRC to advance its graphite sector objectives and could impact its market positioning.

Key Facts About Graphite Use in Nuclear Reactors and Accumulated Radioactive Graphite

• Graphite has been widely used as a moderator and reflector of neutrons in over 100 nuclear power plants, as well as in numerous research and plutonium production reactors.

• The quantity of graphite used in these reactors varies greatly, ranging from just a few kilograms to more than 3,000 tonnes, depending on the reactor design.

• In several nuclear reactors, graphite also serves as fuel sleeve material, resulting in the generation of large volumes of less irradiated but still significantly radioactive material.

• Many older nuclear reactors utilizing graphite have already been shut down, with more reactors nearing the end of their operational lifespan.

• Approximately 250,000 tonnes of radioactive graphite (also referred to as irradiated graphite or i-graphite) have been accumulated globally due to reactor operations and decommissioning activities.

Use of Graphite Bombs During the Kosovo Conflict

Graphite bombs have been in existence for decades and have been deployed by Western nations on two known occasions.

In 1999, NATO used these weapons to strike five power plants in Serbia during the Kosovo conflict, resulting in widespread power outages that affected around 70% of the country.

The objective was to disable the Yugoslav Army’s radar and communication systems while reducing the risk of civilian casualties. However, the resulting blackouts also disrupted essential services, including hospitals, public transportation, and water and sewage facilities.

Conclusion:

The graphite market is witnessing rapid shifts driven by energy security concerns, defense innovations, and strategic supply chain localization, particularly in the U.S., China, and Europe. Major players like Lucid Motors and Mineral Commodities Ltd are making bold moves to secure resources and strengthen domestic capabilities. Additionally, graphite’s critical role in nuclear energy, defense applications, and advanced technologies underscores its growing global significance, positioning it as a pivotal material for both industrial growth and national security in the coming years.

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