Graphite

Graphite has multiple applications, particularly in refractories where it is used in steelmaking. However, future demand for graphite is likely to be driven by electric vehicle manufacturers as the material is a key component of lithium-ion batteries. China is the largest graphite producer, accounting for over 65.50% percent of global graphite production in 20202022, followed by Mozambique at 13% [1]. China also has substantial graphite reserves at approximately 15% [2], although Turkey has the largest known reserves are in Turkey at approximately 27%, which currently contributes less than 1 percent of global graphite supply [3].  

While graphite is used in the clean energy transition, it has been linked to several ESG issues. These included air and water pollution from graphite mining in China and risks of forced labour, as graphite production takes place in countries which have high risks of forced labour.TDi’s salience data indicates that graphite is perceived to have generally limited exposure to ESG issues. Nevertheless, a small number of reports concerning air and water pollution in graphite mining in China indicate that the potential negative environmental impacts that can be associated with the material. These environmental problems underpin resistance to prospective graphite mines and may drive company-community conflict where risks are poorly managed.