The European Union imported approximately 67,200 tonnes of natural graphite in 2025, according to Eurostat. The volume was substantially lower than the 2023 peak. In value terms, China supplied around 43%, followed by Madagascar at 18% and Brazil at 13%. The figures are relevant as Europe expands electric vehicle production and seeks to strengthen domestic battery manufacturing.
Export controls and market fluctuations have highlighted risks linked to a limited number of suppliers and processing centres. While alternative mining sources could improve access to raw graphite, they would not necessarily change dependence on processing facilities outside Europe. If most battery-grade material continues to be processed abroad, manufacturers could face exposure to supply disruption and market volatility even when new deposits enter supply chains.
Battery anodes require processing beyond mining
Lithium-ion batteries require an anode, and natural graphite for battery anodes must undergo multiple stages before it can be used by manufacturers. Spheronisation, purification and coating are used to produce material meeting battery performance requirements. Mining alone does not deliver a battery-grade product. Much of the processing capacity is concentrated in China, which affects supply security for European battery manufacturers.
Processing also involves substantial electricity use and chemical inputs, linking economics to energy costs and environmental performance. 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 that relies on energy-intensive, high-temperature processing.
European developers are required 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 convert raw graphite into battery-grade material at the necessary quality and scale while remaining competitive.
CBAM does not apply a direct carbon charge to imported graphite
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 affects how carbon-border policy can support lower-emission processing within Europe.
The EU Critical Raw Materials Act (CRMA) can increase the strategic prominence of graphite projects and support better 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 identified as potential measures to create demand and reinforce domestic supply chains.
With graphite’s current CBAM treatment, those policy instruments may be more directly relevant to near-term investment decisions than carbon-border measures. A commercial issue remains whether European battery manufacturers will support domestic suppliers through long-term contracts or other arrangements that address supply security, traceability and lower emissions.
Offtake agreements and electricity costs influence new capacity
European graphite projects require more than deposits and mining licences. Commercial 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 highlighted 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. Project investors also need to account for established international processors as well as alternative graphite products. Operating models must remain competitive beyond periods of favourable prices or temporary supply interruptions.
The situation reflects a broader critical raw materials challenge in Europe’s industrial strategy: access to mineral resources is only one stage in building an end-to-end supply chain for batteries. A mine can diversify raw material sources, while domestic purification and shaping determine whether 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.