Graphite is an excellent conductor of heat and electricity, and also has the highest strength of any natural material. However, it wasn’t until recently that the metal began to gain popularity.
Interest in graphite is increasing in large part because lithium-ion batteries, which are used in everything from phones to modern vehicles, are becoming more and more common. Graphite is a key component of those batteries, and as their use increases, graphite production is only expected to rise.
On that note, it’s interesting to look at which country is the largest producer of graphite. In 2015, China took the top spot by a wide margin, with India and Brazil coming in second and third, respectively. Here’s a brief overview of graphite production in those countries and in the other top graphite-producing nations last year. All stats are based on the most recent graphite report from the US Geological Survey.
1. China
Mine production: 780,000 MT
As mentioned, China is the world’s largest graphite producer. In 2015, it put out 780,000 MT of the metal, the same amount it produced in 2014. According to the US Geological Survey, it accounted for 66 percent of world graphite production last year, and consumed 35 percent.
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Despite China’s current stranglehold on the graphite market, investors shouldn’t necessarily expect the Asian nation’s dominance to continue forever. That’s because in recent years the country has made an effort to streamline graphite production, with part of the process being to take polluting producers offline. While originally some were expected to come back online, weak graphite market conditions have hampered that process.
2. India
Mine production: 170,000 MT
India produced much less graphite than China in 2015, but is still the world’s second-largest graphite producer. Its total output last year came to 170,000 MT, the same amount it put out in 2014.
The country’s graphite reserves vary widely from state to state — as this Industrial Minerals article from 2014 shows, the highest are in Arunachal Pradesh, which holds 43 percent of India’s graphite reserves. The country has eight main graphite producers, including Tirupati Carbon & Graphite, Chotanagpur Graphite Industries and Carbon & Graphite Products.
3. Brazil
Mine production: 80,000 MT
Brazil is the world’s third-largest graphite producer, and with 80,000 MT of output in 2015, is significantly behind India as well as China. As with those two countries, Brazil’s 2015 graphite output was flat from 2014.
Little information is available about the Brazilian graphite industry, as the country’s top producers of the metal are private. However, ETF.com does state that the country’s two largest graphite producers are Extrativa Metalquimica and Nacional de Grafite. In the past, Grafite was also a major Brazilian graphite producer.
4. Turkey
Mine production: 32,000 MT
Turkey saw a slight increase in graphite production from 2014 to 2015, with output rising from 29,000 MT to 32,000 MT. The country produces low-quality amorphous graphite, another Industrial Minerals article states, and output has been irregular over the last few decades. Little other information is available about the country’s graphite industry.
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5. Canada
Mine production: 30,000 MT
Canada’s graphite production held steady from 2014 to 2015 at 30,000 MT. Though listed as number five on this list, the country is actually tied in production with North Korea.
Interest in Canada as a potential source of graphite has been rising for the past few years, particularly since Tesla Motors (NASDAQ:TSLA) said it plans to source the lithium, graphite and cobalt it needs for its lithium-ion battery gigafactory from North America. Many graphite exploration companies are now working in Canada, with a few being Canada Carbon (TSXV:CCB), Canada Strategic Metals (TSXV:CJC), CKR Carbon (TSXV:CKR), Focus Graphite (TSXV:FMS), Great Lakes Graphite (TSXV:GLK), Lomiko Metals (TSXV:LMR), Northern Graphite (TSXV:NGC) and Zenyatta Ventures (TSXV:ZEN).
6. North Korea
Mine production: 30,000 MT
Graphite production in North Korea stayed even from 2014 to 2015, coming in at 30,000 MT. As noted, it’s tied for fifth-largest producer with Canada. There is little data on the country’s mining activities, as per The Wall Street Journal; however, reports suggest that the country’s graphite output may not be as high as the US Geological Survey has said.
7. Mexico
Mine production: 22,000 MT
Mexico’s graphite production came in at 22,000 MT in 2015, the same amount it put out in 2014. Excitement about graphite in Mexico was running high in 2014, when Flinders Resources (TSXV:FDR) announced plans to acquire Big North Graphite; however, the deal ultimately fell through and Big North is now off the radar.
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8. Russia
Mine production: 15,000 MT
In 2015, Russia’s graphite output clocked in at 15,000 MT, just as it did in 2014. In 2012, the country decided to increase its graphite production; prior to that time, the country had faced a shortage of graphite. As with many of the countries on this list, little further information is available on graphite in Russia.
9. Norway
Mine production: 8,000 MT
Norway’s graphite output was flat from 2014 to 2015 at 8,000 MT. All graphite deposits in the country contain flake graphite, and are generally low tonnage. That said, many are in favorable locations — for example, close to the sea or to the electrical grid.
10. Zimbabwe
Mine production: 7,000 MT
Finally, Zimbabwe produced 7,000 MT of graphite in 2015, the same amount as it put out in 2014. According to The People’s Voice, Zimbabwe is only one of two countries in Africa to host developed natural graphite mines. The Chamber of Mines of Zimbabwe states that Lynx mine is the only mine producing graphite in the country.
This is an updated version of an article first published on Graphite Investing News on May 24, 2015.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
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