Europe’s battery industry faces a supply-chain constraint in graphite processing, which transforms mined material into anode feedstock for lithium-ion batteries. Natural graphite must undergo purification, shaping and coating before use, while much of this processing capacity is concentrated in China. Imported graphite is not directly subject to a carbon price under the current Carbon Border Adjustment Mechanism (CBAM).
Eurostat recorded approximately 67,200 tonnes of EU natural-graphite imports in 2025, a sharp decline from the 2023 peak. China accounted for 43% of import value, followed by Madagascar with 18% and Brazil with 13%. Export controls and market volatility have brought the risks associated with this concentration into sharper focus.
Processing Determines Battery Material Quality
Mining is only one stage of the graphite supply chain. Spheronisation, purification and coating influence battery performance and can require substantial electricity and chemical inputs.
European processors using cleaner electricity may achieve a lower carbon footprint than competing producers, but that advantage is not automatically reflected in a CBAM charge on imported graphite. Synthetic graphite provides an alternative to natural graphite, although its production has its own high-temperature energy requirements.
European Projects Depend on Integrated Supply Agreements
For European graphite projects, access to secure mine feed, customer qualification, long-term anode offtake and affordable clean electricity are central to commercial viability. Obtaining a mining licence alone does not secure a position in the battery supply chain.
The Critical Raw Materials Act (CRMA) can support projects through permitting improvements and strategic recognition. Investment viability nevertheless depends on whether European battery manufacturers are prepared to pay for supply security and lower emissions.
Public procurement, strategic financing and recycling rules may therefore play a greater role in the near term than carbon-border policy. The graphite supply chain illustrates the distinction between diversifying mineral extraction and securing downstream processing. New mines can broaden geological supply, but Europe remains exposed if purification and shaping capacity continues to be concentrated outside the region.
