Lower graphite production in China could mean higher battery prices

Background: Lithium-ion batteries transport electrons through the use of cathode and anode materials, the latter of which is commonly constructed of graphite. The expanding electric vehicle market has been a major contributor to the global rise in graphite demand.

Graphite mining and production have created environmental concerns in China as pollution worsens.

• Grinding graphite produces particulate air pollutants, which can cause respiratory issues.
• Harsh chemicals used during processing are sometimes discharged from the plant into the surrounding land and water. In one instance, discharged pollutants from a graphite-producing plant prevented a local Chinese river from freezing in the winter, potentially disrupting the ecosystem.

In the past, inspections were done by local authorities. But since 2010 inspections have occurred under the central government, which has made pollution control a priority. 

What's next: Although graphite development is expanding to African countries — including Madagascar, Namibia and Tanzania — China will continue to dominate the market despite the shutdowns. It will take time to develop more capacity outside of Asia; in the meantime, battery prices, outside of long-term pricing agreements, may continue to rise with demand.

Maggie Teliska is a technical specialist at Caldwell Intellectual Property Law, an intellectual property law firm, and CTO of Regent Power. She is also a member of GLG, a platform connecting businesses with industry experts.