The European Union (EU) imported approximately 67,200 tonnes of natural graphite in 2025, according to Eurostat, substantially less than at the 2023 peak. China supplied around 43% of the import value, followed by Madagascar at 18% and Brazil at 13%. These figures matter as Europe expands electric vehicle production and seeks to strengthen domestic battery manufacturing.
Export controls and market fluctuations have highlighted the risks of relying on a limited number of suppliers and processing centres. More diverse mining sources could improve access to raw graphite, but would not necessarily reduce dependence on facilities abroad. If most battery-grade material continues to be processed outside Europe, manufacturers could remain exposed even as alternative deposits enter supply chains.
Processing determines whether natural graphite can enter battery production
Every lithium-ion battery needs an anode, and natural graphite for battery anodes must undergo several stages before manufacturers can use it. Spheronisation, purification and coating produce material that meets battery performance requirements; mining by itself does not deliver a battery-grade product. Much of this processing capacity is concentrated in China, leaving European battery manufacturers exposed to supply disruption and market volatility.
Processing can use substantial amounts of electricity and chemicals, so energy costs and environmental performance affect its economics. A European facility powered by cleaner electricity may have a lower carbon footprint than a competing processor. Synthetic graphite is another anode-material option, but it follows a different industrial route with energy-intensive, high-temperature processing requirements.
Developers in Europe must weigh the costs, performance and environmental effects of natural and synthetic graphite. Expanding extraction alone will not provide the qualified materials battery manufacturers require. Processing facilities must be able to convert raw graphite at the necessary quality and scale while remaining competitive.
CBAM treatment and raw materials policy address different parts of the chain
Imported graphite does not currently face a direct carbon charge under the EU Carbon Border Adjustment Mechanism (CBAM). As a result, a lower carbon footprint at a European processing plant is not automatically reflected in a CBAM charge on competing graphite imports. This limits the ability of carbon-border policy to support lower-emission processing in Europe.
The EU Critical Raw Materials Act (CRMA) can increase the strategic prominence of graphite projects and support better permitting conditions. Regulatory recognition, however, cannot by itself ensure that a European processing facility secures enough customers or earns sustainable returns. Public procurement, strategic financing and recycling policies could help create demand and reinforce domestic supply chains.
Given graphite’s current treatment under CBAM, those measures may be more directly relevant to near-term investment decisions than carbon-border policy. A commercial question remains whether European battery manufacturers will back domestic suppliers with long-term contracts or other arrangements that recognise supply security, traceability and lower emissions.
Customer qualification and power costs shape processing investment
European graphite projects need more than deposits and mining licences. Commercial viability also depends on reliable feedstock, processing technology, customer qualification and long-term sales agreements. Long-term anode offtake contracts and competitively priced low-carbon electricity can be 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. Project investors must also consider established international processors and alternative graphite products. Projects need operating models that remain competitive beyond periods of favourable prices or temporary supply interruptions.
Graphite reflects a wider issue in Europe’s critical raw materials strategy: access to mineral resources is only one stage in building an industrial supply chain. A mine can diversify the sources of raw material, while domestic purification and shaping determine whether that material can reliably serve the battery industry. Reducing dependence on external suppliers involves investment in mining, processing, clean energy and customer relationships, alongside competitive capacity to convert graphite into battery-grade material.
