The European Union imported approximately 67,200 tonnes of natural graphite in 2025, according to Eurostat, a figure substantially below the 2023 peak. China accounted for around 43% of the import value, followed by Madagascar at 18% and Brazil at 13%. The data are relevant as Europe expands electric vehicle production and seeks to strengthen domestic battery manufacturing.
Export controls and market fluctuations have drawn attention to risks tied to a limited set of suppliers and processing centres. While additional mining sources could improve access to raw graphite, they would not necessarily change dependence on processing capacity located abroad. If most battery-grade material continues to be processed outside Europe, manufacturers could face exposure even when alternative deposits enter supply chains.
Processing steps required for battery-grade natural graphite
Each lithium-ion battery requires an anode, and natural graphite used for anodes must undergo multiple stages before it can be used by manufacturers. Spheronisation, purification and coating are among the steps that produce material meeting battery performance requirements. Mining alone does not provide a battery-grade product.
Processing capacity for these stages is concentrated in China, which affects the supply position of European battery manufacturers. Concentration can increase exposure to supply disruption and market volatility. It also shapes how project developers assess where qualified material can be produced at scale.
Processing operations can require substantial electricity and chemicals, linking economics to energy costs and environmental performance. A processing facility in Europe powered by cleaner electricity may have a lower carbon footprint than a competing processor. Synthetic graphite is also an option for anodes, but it uses a different industrial route involving energy-intensive, high-temperature processing.
European developers therefore need to weigh costs, performance and environmental effects across both natural and synthetic graphite pathways. Expanding extraction alone does not provide the qualified materials that battery manufacturers require. Processing facilities must be able to convert raw graphite into battery-grade material at the necessary quality and scale while remaining competitive.
CBAM treatment differs from carbon footprint outcomes in graphite imports
Imported graphite does not currently face a direct carbon charge under the EU Carbon Border Adjustment Mechanism (CBAM). Because of this, a lower carbon footprint at a European processing plant is not automatically reflected in any CBAM charge on competing graphite imports. This limits how far carbon-border policy can support lower-emission processing within Europe.
The EU Critical Raw Materials Act (CRMA) can raise the strategic profile of graphite projects and support permitting conditions. Regulatory recognition alone cannot ensure that a European processing facility secures enough customers or achieves sustainable returns. Public procurement, strategic financing and recycling policies are cited as potential ways to create demand and reinforce domestic supply chains.
With graphite’s current CBAM treatment, those measures may be more relevant to near-term investment decisions than carbon-border policy. A further commercial issue is whether European battery manufacturers will support domestic suppliers through long-term contracts or other arrangements that address supply security, traceability and lower emissions.
Offtake qualification and electricity costs influence new processing capacity
European graphite projects require more than deposits and mining licences. Viability depends on reliable feedstock, processing technology, customer qualification and long-term sales agreements. Long-term anode offtake contracts and competitively priced low-carbon electricity are described as particularly important when financing new capacity.
Battery manufacturers must qualify graphite products for their own production processes, making consistent quality and dependable supply central to supplier relationships. Investors also need to consider existing international processors as well as alternative graphite products. Projects must maintain competitiveness beyond periods of favourable prices or temporary supply interruptions.
The issues around graphite fit into a broader critical raw materials challenge in Europe’s industrial strategy. Access to mineral resources is only one stage in building a supply chain for the battery sector. A mine can diversify raw material sources, while domestic purification and shaping determine whether material can reliably serve battery industry requirements.
Reducing dependence on external suppliers involves investment across mining, processing, clean energy and customer relationships. It also depends on having competitive capacity to convert graphite into battery-grade material within Europe or through reliable partner networks.