China Graphite's Flake Sales Skyrocket on Battery Demand

China Graphite's

China Graphite, a major natural graphite producer, has reported a remarkable surge in flake sales during the first half of the year. The rise, driven by robust downstream demand from the lithium-ion battery industry, highlights the growing importance of graphite in the production of electric vehicle (EV) batteries.

From January to June, China Graphite sold 10,109 tonnes of graphite flake, marking a 174% increase compared to the 3,689 tonnes sold in the same period last year. The revenue from flake sales grew by 111% to 25.1 million yuan ($3.6 million), up from 11.9 million yuan in the previous year.

Spherical Graphite Decline Due to Production Suspension

However, while flake sales thrived, spherical graphite sales saw a steep decline. The company’s spherical graphite output fell by 51% to 923 tonnes during the first half, as production was halted in the first quarter due to colder winter temperatures. As a result, spherical graphite revenue dropped 71% to 10.2 million yuan from 34.9 million yuan the previous year.

The demand for graphite is closely linked to the electric vehicle market. China's new energy vehicle (NEV) production rose by 29% year-on-year to 7.008 million units between January and August. Sales of NEVs increased by 31% to 7.037 million units during the same period. The NEV penetration rate in August reached 45%, up from 32% in 2023, reflecting the booming EV market and the essential role of graphite in this sector.