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China Maintained Dominance in Global Graphite Processing

China continues to hold a 90% share of global battery anode-material capacity as demand for EVs rises.

Updated on Sept. 24, 2026 in Electric Vehicles

Isometric editorial illustration showing a stack of graphite blocks, representing industrial supply chain concentration for battery materials.
China continues to dominate the global graphite supply chain, controlling 90% of processing capacity critical for manufacturing electric vehicle batteries. AI Illustration. Upload story photo >

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Data reveals that China controls 90% of global graphite processing capacity, a critical step for battery production. As global battery demand accelerates, this supply chain concentration remains a key point of focus for the electric vehicle industry.

Why it matters

Graphite serves as the primary component for anodes, which make up 10-15% of total battery-cell costs. Securing stable access to these materials is essential as global battery demand is projected to reach up to 4.4 TWh by 2030.

Graphitisation requires temperatures exceeding 2,800 degrees Celsius to convert carbon into battery-grade graphite. Current projections estimate global battery demand will hit 3.5-4.4 TWh by 2030, up from 1,591 GWh in 2025.

The players

Epsilon Advanced Materials

This company currently operates a 2,000-tonne graphite-anode plant in India and intends to expand capacity to 30,000 tonnes.

International Energy Agency

This intergovernmental organization provides analysis and data on global energy trends and supply chain security.

The details

The graphitisation process is an energy-intensive requirement for creating functional battery anodes. With LFP batteries increasing their market share from 24% in 2021 to 55% in 2025, the pressure on the global supply chain for high-grade graphite has intensified.

Timeline

  1. In 2021, LFP batteries captured 24% of the global EV market share.

  2. By 2025, LFP batteries accounted for 55% of global EV batteries.

  3. In June 2026, the IEA reported China's 90% share of anode materials.

  4. In September 2026, a transcript identified graphite as a supply chain choke point.

  5. Epsilon Advanced Materials targets mid-2028 for its planned production expansion.

Roadmap

The reliance on concentrated processing hubs mirrors the broader automotive industry shift toward securing regionalized supply chains for electric vehicles. This trajectory highlights the transition away from monolithic dependency as manufacturers look to scale domestic operations in emerging markets.

The concentration of anode manufacturing can influence the long-term price stability of electric vehicles for the average consumer. Increased domestic capacity by firms like Epsilon may eventually help diversify availability and mitigate potential cost spikes for battery-dependent technology.

The takeaway

The heavy reliance on specific processing methods like high-heat graphitisation underscores why supply chain diversification remains a central challenge for the EV sector. Diversifying these sources is necessary to keep pace with the rapid adoption of LFP batteries in modern electric cars.

What happens next

Epsilon Advanced Materials plans to increase its annual production capacity to 30,000 tonnes by mid-2028.

Further reading

For more on the changing landscape of power storage, visit our Electric Vehicles section.

Source note: This article includes information reported by MoneyControl.

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Should the country reduce its reliance on foreign sources for essential battery materials?