Graphite’s war-fighting capabilities

Militaries
re-arming
 

Consider
the
following:

• 
  According
  to
  the
  U.S.
  Department
  of
  Defense,
  the
  military
  is
  prioritizing
  maritime
  and
  air
  forces
  that
  would
  play
  central
  roles
  in
  the
  Indo-Pacific
  region,
  as
  the
  Chinese
  military
  flexes
  its
  muscles
  in
  the
  South
  China
  Sea
  and
  continues
  to
  hint
  at
  an
  invasion
  of
  independent
  Taiwan,
  a
  US
  ally.
• The
  US
  Navy,
  says
  DoD,
  want
  to
  grow
  its
  force
  to
  over
  500
  ships.
  In
  its
  fully-year
  2024
  budget
  request,
  the
  navy
  seeks
  to
  procure
  nine
  battle
  force
  ships,
  including
  one
  ballistic
  missile
  submarine,
  two
  destroyers
  and
  two
  frigates.
  The
  hulls
  of
  these
  ships
  are
  made
  of
  high-strength
  alloyed
  steel,
  containing
  metals
  like
  nickel,
  chromium,
  molybdenum
  and
  manganese.
  The
  Tomahawk
  cruise
  missile
  has
  an
  aluminum
  airframe
  and
  the
  Mark
  48
  torpedo
  has
  an
  aluminum
  fuel
  tank.

  The
  Air
  Force
  seeks
  to
  procure
  nearly
  100
  aircraft
  including
  48
  F-35
  fighter
  jets,
  and
  for
  land
  forces
  in
  the
  Indo-Pacific,
  the
  US
  Army
  is
  bolstering
  long-range
  precision
  fires
  including
  artillery,
  rockets
  and
  missiles.
  The
  M30A1
  rocket
  explodes
  with
  82,000
  tungsten
  ball
  bearings.
  Nearly
  20%
  of
  the
  F-35
  fighter
  jet’s
  weight
  is
  titanium,
  while
  Joint
  Air-to-Surface
  Standard
  Missiles
  have
  concrete-piercing
  casing
  made
  of
  tungsten
  steel.

  Last
  fall,
  President
  Biden signed
  off
  an
  an
  $80
  million
  grant
  to
  Taiwan for
  the
  purchase
  of
  American
  military
  equipment.

• The
  defense
  department’s
  2023
  China
  Military
  Power
  Report
  estimates
  the
  Chinese
  have
  more
  than
  500
  operational
  nuclear
  warheads
  as
  of
  May
  2023,
  and
  are
  developing
  new
  intercontinental
  ballistic
  missiles.
  These
  nuclear
  or
  conventionally
  armed
  missiles
  give
  the
  PRC
  the
  capability
  to
  strike
  targets
  in
  the
  continental
  United
  States,
  Hawaii
  and
  Alaska,
  an
  official
  said.

  Chinese
  leaders
  are
  seeking
  to
  modernize
  the
  People’s
  Liberation
  Army
  capabilities
  in
  all
  domains
  of
  warfare.
  On
  land,
  the
  PLA
  continues
  to
  modernize
  its
  equipment
  and
  focus
  on
  combined
  arms
  and
  joint
  training.
  At
  sea,
  the
  world’s
  largest
  navy
  has
  a
  battle
  force
  of
  more
  than
  370
  ships
  and
  submarines.
  In
  the
  past
  two
  years,
  China’s
  third
  aircraft
  carrier
  was
  launched,
  along
  with
  its
  third
  amphibious
  assault
  ship.
  The
  PLA
  Air
  Force
  “is
  rapidly
  catching
  up
  to
  western
  air
  forces,”
  the
  official
  said.
  The
  air
  force
  continues
  to
  build
  up
  manned
  and
  unmanned
  aircraft
  and
  the
  Chinese
  announced
  the
  fielding
  of
  the
  H-6N
  —
  its
  first
  nuclear-capable,
  air-to-air
  refueled
  bomber. (U.S.
  Department
  of
  Defense)

• Russia’s
  invasion
  of
  Ukraine
  has
  highlighted
  the
  need
  for
  robust
  defense
  in
  Europe.
  According
  to
  the
  Center
  for
  European
  Policy
  and
  Analysis
  (CEPA),
  the
  European
  Union
  has
  launched
  the
  European
  Defense
  Industrial
  Strategy
  and
  the
  European
  Defense
  Industrial
  Program,
  building
  on
  previous
  efforts
  to
  improve
  weapons
  procurement.
  With
  Russia’s
  shift
  to
  a
  war
  economy
  and
  dwindling
  US
  military
  assistance
  —
  additional
  funds
  for
  Kyiv
  have
  been
  stuck
  in
  Congress
  for
  months,
  although
  a $300
  million
  stop-gap
  measure was
  recently
  announced
  —
  CEPA
  notes European
  nations
  are
  urgently
  sourcing
  defense
  equipment
  from
  non-European
  suppliers,
  which
  often
  offer
  shorter
  delivery
  times.
  
  
  Poland
  has
  made
  significant
  acquisitions
  from
  South
  Korea,
  for
  example.
  Warsaw
  decided
  to
  purchase
  FA-50
  light
  attack
  aircraft,
  K9
  howitzers,
  K2
  Black
  Panther
  tanks,
  and
  K239
  Chunmoo
  multi-barreled
  missile
  launchers
  worth
  $5.8bn
  in
  2022. 

• As
  of
  August
  2023,
  the
  Biden
  administration
  had committed
  more
  than
  $43
  billion towards
  defending
  Ukraine,
  including
  about
  2,000
  Stinger
  antiaircraft
  systems,
  10,000
  Javelin
  anti-armor
  systems,
  and
  greater
  than
  2
  million
  155-mm
  artillery
  rounds.

• Russia
  has
  expanded
  its
  army
  and
  has
  material
  advantages
  over
  Ukraine
  notably
  in
  artillery.
  In
  a
  Feb.
  13
  study,
  military
  experts
  said
  Russia
  started
  the
  war
  with
  a
  highly
  disorganized
  force
  of
  about
  360,000
  troops.
  By
  the
  beginning
  of
  2024,
  the
  Russian
  Operational
  Group
  of
  Forces
  in
  the
  occupied
  territories
  comprised
  470,000
  troops.
  The
  country
  has
  dug
  into
  its
  large
  inventory
  of
  older
  equipment
  to
  rebuild
  damaged
  tanks
  and
  other
  armored
  vehicles.
  Another
  analyst quoted
  by
  the
  CBC said
  the
  Russians
  now
  have
  stockpiles
  allowing
  them
  to
  fight
  for
  at
  least
  another
  year
  or
  two.

• Other
  experts
  suggest
  Russia
  is
  getting
  significant
  outside
  help.
  According
  to
  US
  intelligence,
  China
  has
  ramped
  up
  military
  aid
  to
  Russia,
  supplying
  components
  for
  navigation
  equipment
  in
  M-17
  military
  helicopters,
  jamming
  technology
  for
  military
  vehicles, parts
  for
  fighter
  jets
  and
  components
  for
  defence
  systems
  like
  the
  S-400
  Surface-to-Air
  Missile
  System.
  Iran
  has
  supported
  Moscow
  with
  Shahed
  136s
  and
  the
  Mojaher
  6
  drones
  and
  plans
  to
  build
  a
  drone
  factory
  near
  the
  Russian
  town
  of
  Yelabuga.
  North
  Korea
  has
  provided
  artillery
  shells
  and
  munitions
  for
  Moscow’s
  war
  in
  Ukraine. (CBC
  News,
  Feb.
  23,
  2024).
  Last
  summer, The
  Telegraph
  via
  Business
  Insider
  reported China
  is
  helping
  to
  arm
  Russia
  with
  a
  range
  of
  military
  equipment,
  including
  helicopters,
  drones,
  optical
  sights,
  and
  key
  defense
  industry
  metals.

Risk
of
metal
shortages

Despite
this
re-arming
trend,
the
US
military
and
its
NATO
allies
face
dwindling
stockpiles
of
minerals
for
military
use.
The
problem
is
especially
grave
considering
that
China,
now
America’s
strongest
foe
militarily,
controls
the
market
for
most
critical
minerals
and
the
United
States
is
dependent
on
China
(and
Russia)
for
the
materials
required
for
building
its
military
equipment
and
weaponry.

In
a
recent column
in
Real
Clear
Energy,
Eastern
New
Mexico
University
professor
Jim Constantopoulos
notes
that
the
United
States
does
not
have
a
national
policy
for
mineral
production,
and
that
without
action
to
maintain
the
defense
stockpile,
the
US
could
be
ill-prepared
for
a
defense
sector
more
reliant
on
batteries
and
renewable
energy
technologies,
let
alone
a
conflict
with
China,
the
world’s
mineral
superpower.

If
a
conflict
were
to
escalate
into
a
war,
he
says
the
US
would
have
shortfalls
in
69
minerals,
most
of
them
used
in
weapons
production.

China
is
the
leading
producer
of
29
of
43
industrial
minerals,
and
the
US
relies
on
China
for
about
half
of
the
critical
minerals
including
lithium,
cobalt
and
rare
earths.

China
is
also
the
world’s
largest
producer
of
gallium,
germanium,
natural
and
synthetic
graphite
—
and
the
largest
import
source
for
these
materials. While
Syrah
Resources
was
expected
to
start
producing
natural
graphite-based
anode
materials
in
December,
the
US
is
otherwise
100%
dependent
on
China
for
(refined)
graphite
imports.

Last
year
China
imposed
export
restrictions
on
gallium,
germanium
and
graphite,
disrupting
supplies
to
the
United
States.

Graphite
is
an
important
component
of
helicopters,
submarines,
artillery
and
missiles,
but
70%
of
graphite
production
comes
from
China
(and
100%
of
processed
graphite)
—
a
problem highlighted
last
fall by
European
Council
President
Charles
Michel.

A
similar
message
was
communicated
in
June
2023
by
NATO
Secretary
General
Jens
Stoltenberg,
who
warned
the
alliance
to
avoid
becoming
overly
dependent
on
Chinese
minerals.

It
isn’t
only
China.
Russia
supplies
NATO
members
with
other
key
defense
metals,
including
aluminum,
nickel
and
titanium.

Constantopoulos
points
out
in
his
column
that
in
the
event
of
a
mineral
shortage, the
U.S.
could
not
depend
on
its
closest
allies
for
critical
raw
materials. NATO
has
limited
mineral
production.
The
European
Union
imports
between
75%
and
100%
of
most
metals
it
consumes,
and neither
the
EU
nor
its
member
countries
have
stockpiles.
Nor
do
Canada
or
Great
Britain
have
mineral
stockpiles.

The
Carnegie
Endowment
points
out that the
US
government
holds
limited
mineral
inventories
in
its
National
Defense
Stockpile,
while
the
European
Union
(EU)
has
walked
back
its
plans
to
develop
a
centralized
mineral
stockpile.

NDS
inventories
have
dwindled
since
the
1950s,
and
as
of
March
2023
were
valued
at
just
$912.3
million
—
1.2%
of
the
stockpile’s
1962
value
of
$77.1
billion,
adjusted
for
inflation.

This
is
a
complete
180
from
before
World
War
Two,
when
the
Allies
controlled
most
of
the
world’s
minerals,
a
fact
that
proved
instrumental
in
eventually
defeating
the
Axis
powers.

As
Carnegie
points
out, mineral
supplies
can
help
sustain
military
power,
while
mineral
shortages
can
severely
undermine
it.

The
foundation
says
there
are
three
main
risks
that
could
lead
to
mineral
shortages:
foreign
export
controls;
rising
military
demand
amid
great
power
competition,
including
a
possible
US-China
conflict;
and
disrupted
sea-lanes.

If
war
breaks
out
with
China,
US
merchant
vessels
carrying
minerals
across
the
Pacific
risk
attack
by
Chinese
forces.

The
chart
below
shows
the
US
military
and
NATO
are
in
a
much
weaker
minerals
position
today
compared
to
1938.

Also
from
Carnegie:

A
2023
report
from
the
Hague
Centre
for
Strategic
Studies
found
that European
countries
face
high
or
very
high supply
risks
for
several
critical
minerals with
military
applications,
including
aluminum,
beryllium,
chromium,
copper,
and
natural
graphite for
towed
artillery,
which Ukraine heavily
relies
on.

The
United
States
faces
similar
mineral
shortage
risks
from
its
efforts
to
supply
Ukraine
militarily.

Graphite’s
properties

Virtually
every
US
military
system
requires
mineral
components,
from
steel
and
titanium
to
graphite
composites
and
cadmium
alloys. Global
defense
spending shows
that
military
demand
is
increasing
for
these
platforms,
munitions,
and
thus
minerals.
(Modern
War
Institute)

Graphite
is
the
ideal
material
for
defense
purposes
thanks
to
its
unique
properties,
i.e.,
it
is
able
to
withstand
very
high
temperatures
with
a
high
melting
melting
point;
it
is
stable
at
these
high
temperatures;
it
is
lightweight
and
easy
to
machine;
and
it
is
corrosion-resistant.

Four
ways
graphite
has
transformed
aerospace
engineering to
make
it
more
efficient,
are
increasing
the
service
life
of
airplanes;
improving
fuel
economy;
having
the
ability
to
run
hotter
engines;
and
reducing
the
weight
of
airplanes.

Fun
fact:
when
an
industry
giant
replaced
a
single
leaded
bronze
part
with
a
graphite
equivalent,
it
saw
a
weight
decrease
of
1.5
lbs.
In
aerospace,
every
pound
saved
equates
to
$5,000
a
year
in
fuel
costs.

Graphite
is
found
in
a
wide
range
of
consumer
devices,
including
smartphones,
laptops,
tablets
and
other
wireless
devices,
earbuds
and
headsets.
Besides
being
integral
to
electric
vehicles
—
graphite
is
used
in
the
anode
part
of
the
lithium-ion
battery
—
graphite
is
found
in
lubricants,
nuclear
reactors,
graphene
sheets,
and
in
pencil
lead.

Another
significant
characteristic
is
that
it
is
chemically
inert,
meaning
it
is
not
affected
by
a
majority
of
reagents
and
acids.
(BYJU’s)

The
European
Commission
last
fall added
synthetic
graphite
and
aluminum to
the
list
of
strategic
and
critical
raw
materials
outlined
in
the
Critical
Raw
Materials
Act.

In
2021,
President
Joe
Biden
signed
an executive
order aimed
at
strengthening
critical
US
supply
chains.
Graphite
was
identified
as
one
of
four
minerals
considered
essential
to
the
nation’s
“national
security,
foreign
policy
and
economy.”

Graphite
is:

• One
  of
  14
  listed
  minerals
  for
  which
  the
  US
  is
  100%
  import-dependent.
• One
  of
  nine
  listed
  minerals
  meeting
  all
  six
  of
  the
  industrial/defense
  sector
  indicators
  identified
  by
  the
  US
  government
  report.
• One
  of
  four
  listed
  minerals
  for
  which
  the
  US
  is
  100%
  import-dependent
  while
  meeting
  all
  six
  industrial/defense
  sector
  indicators.
• One
  of
  three
  listed
  minerals
  which
  meet
  all
  industrial/defense
  sector
  indicators
  —
  and
  for
  which
  China
  is
  the
  leading
  global
  producer
  and
  leading
  US
  supplier.

Military
uses

A report
last
year
from
the
Hague
Centre
for
Strategic
Studies found
that natural
graphite
and
aluminium
are
the
materials
most
commonly
used
across
military
applications and
are
also
subject
to
considerable
supply
security
risks
that
stem
from
the
lack
of
suppliers’
diversification
and
the
instability
associated
with
supplying
countries.

The
report
assessed
the
degree
of
criticality
for
each
of
40
materials
deemed
critical
or
soon
to
be
critical.
Natural
graphite
was
rated
“very
high-risk”
for
air
applications,
and
“high-risk”
for
sea
applications.

In
the
table
below,
natural
graphite
is
rated
red,
very
high
risk,
for
its
use
in
fighter
aircraft,
main
battle
tanks,
submarines,
corvettes,
artillery
and
ammunition.
Aluminum,
used
in
fighters,
tanks,
missiles,
submarines,
corvettes,
artillery,
ammunition
and
torpedos,
was
also
rated
a
very
high-risk
material.

The
report
says
aluminum
and
natural
graphite are
the
two
most
used
materials
in
the
defence
industry
and
can
be
found
in
aircrafts
(fighter,
transport,
maritime
patrol,
and
unmanned),
helicopters
(combat
and
multi-role),
aircraft
and
helicopter
carriers,
amphibious
assault
ships,
corvettes,
offshore
patrol
vessels,
frigates,
submarines,
tanks,
infantry
fighter
vehicles,
artillery,
and
missiles.
These
materials
are
used
in
components
such
as
airframe
and
propulsion
systems
of
helicopters
and
aircrafts
as
well
as
onboard
electronics
of
aircraft
carriers,
corvettes,
submarines,
tanks,
and
infantry
fighter
vehicles.
The
impact
of
supply
security
disruption
would
hence
be
very
significant,
given
the
multiplicity
of
aluminum
and
natural
graphite’s
applications.

In
the
fighter
plane
graphic
below,
notice
the
use
of
natural
graphite
(red
dots)
in
almost
every
part
of
the
plane,
including
the
body,
wings,
tail,
nose,
nozzle,
propulsion
system,
landing
gear,
electro-optical
systems,
and
sensors
and
electronic
systems.

According
to
the
report,
the
most
used
of
the
40
materials
across
the
air
domain
are
aluminum,
natural
graphite,
copper
and
titanium:

These
materials
have
several
applications
in
aeronautics.
In
aircrafts
(fighter,
transport,
maritime
patrol,
and
unmanned)
and
helicopters
(combat
and
multi-role),
aluminium,
natural
graphite,
and
titanium
find
their
main
application
in
the
airframe,
where
they
are
used
in
the
body,
wings,
tail,
nose,
and
axis
of
the
aircraft.
They
are
also
employed
in
the
production
of
propulsion
systems’
components
such
as
combustors,
nozzle,
drive
shaft,
and
propellers,
as
well
as
in
landing
gears,
connectors,
and
electronic
systems.

A
second
graphic
of
a
tank
shows
natural
graphite
in
the
inertial
navigation
system,
combat
identification
equipment,
and
coaxial
machine
gun.
According
to
the
report, For
the
construction
of
tank
guns,
Howitzer
machine
guns
in
infantry
fighter
vehicles,
and
GPS/SAL
guidance
systems
in
ammunition,
natural
graphite
is
found
in
combination
with
other
materials
to
construct
these
components.

The
amount
of
equipment
used
by
the
US
military
alone
demonstrates
a
captive
market
for
natural
graphite.
One source reported
in
2018,
the
US
government
had
roughly
440,000
vehicles,
780
strategic
missiles,
278
combat
ships
and
14,000
aircraft. 

It
notes a
key
market
risk
for
the
US
defense
sector
is
a
material
reliance
on
a
geopolitical
competitor
that
can
create
a
shortage
of
natural
graphite
on
a
whim
that
would
directly
impede
manufacturing
of
critical
defense
systems
and
equipment
in
the
US.

The
Defense
Logistics
Agency,
the
same
agency
that
manages
the
National
Defense
Stockpile,
is reportedly
looking
for
a
domestic
source
of
isomolded
graphite
production,
used
by
the
military
in
several
applications,
including
tactical
munitions,
strategic
rockets
and
missiles,
and
large
advance-launch
systems.

One
of
the
more
surprising
defense
applications
of
graphite
is
the
so-called
graphite
bomb. According
to
Research
Gate,
the
non-lethal
weapon,
also
known
as
a
soft
bomb, is
used
for
shutting
down
the
power
supply
systems
of
the
enemy.
The
working
mechanism
of
the
graphite
bomb
is
relatively
simple
and
is
based
on
making
suspensions
of
air/clouds
of
carbon
filament
chemically
treated
extremely
fine
over
the
electrical
components,
causing
short
circuits
and
electrical
discharges
within
the
infrastructure
of
electricity
supply…

Carbon
filaments 
used 
inside 
of 
graphite 
bombs 
are 
very 
small 
and 
may 
give 
rise 
to 
dense
clouds, 
with 
a 
long 
persistence….
the 
effect 
of 
the 
graphite 
bomb 
is 
only 
over 
the 
equipment 
and 
facilities
of 
uninsulated 
power 
supply. 

A
graphite
bomb
was
used
against
Iraq
in
the
First
Gulf
War
(1990-91),
neutralizing
about
85%
of
the
country’s
electricity
facilities.
A
US-made
graphite
bomb
was
deployed
during
the
NATO
military
intervention
in
former
Yugoslavia
(1999),
where
it
disabled
more
than
70%
of
national
grid
electricity
supply.

The
US
military
also uses
graphite
flakes
to
block
electromagnetic
waves that
the
enemy
might
detect
and
use
to
target
troops
in
the
field.
Essentially
a
type
of
smoke,
synthetic
graphite
flakes
are
released
from
ground-based
systems
that
disperse
bulk
powders
into
the
atmosphere.
The
powders,
called
Micro-260
and
K-2,
are
composed
of
flakes
of
various
sizes.

It
should
be
pointed
out
that
synthetic
graphite,
made
from
petroleum
coke,
is used
in
all
the
downstream
industries
that
produce
military
equipment
components,
such
as
foundries
(graphite
electrodes)
that
make
steel;
and
facilities
that
manufacture
wheels
for
vehicles
or
body
armor
for
soldiers
(various
types
of
graphite
molds
and
dies).

Synthetic
graphite
is
employed
directly
in
graphite
nozzles,
used
in
high-powered
rockets
due
to
graphite’s
ability
to
withstand
extreme
temperatures.
These
graphite
components
can
be
as
simple
as
a
hole
drilled
into
a
synthetic
graphite
block,
or
a
more
advanced,
machined
nozzle
that
has
its
own
cooling
system.

A
new
graphite
application
for
military
and
industrial
usages
is
a graphite
oxide
patented
by
the
US
Army.
The
water
recycling
system
is
designed
for
washing
out
tanks
and
trucks
exposed
to
chemical
and
biological
weapons.

The
system
filters
out
impurities
at
up
to
600
gallons
of
wash
water
per
hour,
allowing
dumped
wastewater
to
be
re-used
or
safely
dumped.

Downstream
from
military
applications,
graphite
is
used
widely
in
the
aerospace
industry. According
to
Semco
Carbon, heat
treating
synthetic
graphite
is
used
as
engineered
material
to
create
precision
machined
plates,
posts,
nuts
and
bolts
along
with
heating
elements
and
fixtures
used
in
the
heat
treatment
of
aerospace
metals
such
as
titanium,
stainless
steel,
and
other
alloys.

As
an
extension
of
heat
treating
for
aerospace,
a
common
graphite
use
is
as
a
susceptor.
“A
susceptor
is
a
material
used
for
its
ability
to
absorb
electromagnetic
energy
and
convert
it
to
heat
(which
is
sometimes
designed
to
be
re-emitted
as
infrared
thermal
radiation).” 

Another
use
for
graphite
is
as
a
mold. Graphite
molds are
used
to
cast
titanium,
aluminum,
and
stainless
steel
to
near
net
shapes.
Graphite
molds
are
also
used
for
molding
non-metal
composites.
An
example
of
this
is
for
a
satellite
dish
deployed
on
a
satellite.

Graphite
itself
is
used
for
jet
and
rocket
engine
nozzles
and
Carbon/Graphite
vanes.
Impellers
and
rotors
move
aviation
fuel
safely
without
the
dangers
of
creating
sparks
to
ignite
fuel.

 

Electric
vehicles

A
White
House
report
on
critical
supply
chains
showed
that
graphite
demand
for
clean
energy
applications
will
require
25
times
more
graphite
by
2040
than
was
produced
in
2020.

Graphite
has
the
largest
component
in
batteries
by
weight,
constituting
45%
or
more
of
the
cell.
Nearly
four
times
more
graphite
feedstock
is
consumed
in
each
battery
cell
than
lithium
and
nine
times
more
than
cobalt.

Graphite
is
therefore
indispensable
to
the
EV
supply
chain.

BloombergNEF
expects
graphite
demand
to
quadruple
by
2030
on
the
back
of
an
EV
battery
boom
transforming
the
transportation
sector.
It
is
not
an
exaggeration
to
say
that
electrification
of
the
global
transportation
system
doesn’t
happen
without
graphite.

The
lithium-ion
batteries
in
electric
vehicles
are
composed
of
an
anode
(negative)
on
one
side
and
a
cathode
(positive)
on
the
other.
Graphite
is
used
in
the
anode.

The
cathode
is
where
metals
like
lithium,
nickel,
manganese
and
cobalt
are
used,
and
depending
on
the
battery
chemistry,
there
are
different
options
available
to
battery
makers.
Not
so
for
graphite,
a
material
for
which
there
are
no
substitutes.

Nuclear
power

By
far
the
greatest
use
of
graphite
in
nuclear
has
been
as
a
moderator
and
reflector.
According
to
an International
Atomic
Energy
Agency
(IAEA)
paper, Graphite
has
been
used
as
a
moderator
and
reflector
of
neutrons
in
more
than
100
nuclear
power
plants
and
in
many
research
and
plutonium-production
reactors.
It
is
used
primarily
as
a
neutron
reflector
or
neutron
moderator,
although
graphite
is
also
used
for
other
features
of
reactor
cores,
such
as
fuel
sleeves.

Graphene

If
you
take
a
very
close
look
at
a
graphite
pencil
lead,
you
will
see
layer
upon
layer
of
carbon
atoms
—
multiple
two-dimensional
planes
that
are
loosely
bonded
to
their
neighbors.

The
reason
graphite
works
so
well
as
a
writing
material,
and
industrial
lubricant,
is
because
the
layers
of
atoms
slip
easily
over
one
another.
Each
of
those
single
layer
of
atoms
is
graphene.

Graphene
has
unique
combinations
of
optical,
electrical
and
mechanical
properties:

• Astonishing
  electrical
  conductivity
  –
  graphene
  has
  the
  highest
  current
  density
  (a
  million
  times
  that
  of
  copper)
  at
  room
  temperature;
  the
  highest
  intrinsic
  mobility
  (100
  times
  more
  than
  in
  silicon);
  and
  can
  carry
  more
  electricity
  more
  efficient,
  faster
  and
  with
  more
  precision
  than
  any
  other
  material.
• Graphene
  also
  beats
  diamonds
  in
  thermal
  conductivity
  –
  it’s
  better
  than
  any
  other
  known
  material.
• It
  is
  the
  thinnest
  and
  strongest
  material
  known
  to
  man
  —
  200
  times
  stronger
  than
  steel,
  almost
  invisible
  and
  weightless,
  and
  stretches
  like
  rubber.
  Graphene
  can
  stretch
  up
  to
  20%
  of
  its
  length,
  and
  yet
  it
  is
  the
  stiffest
  known
  material,
  even
  stiffer
  than
  diamonds.
• Graphene
  is
  the
  most
  impermeable
  material
  ever
  discovered;
  water
  molecules
  cannot
  penetrate
  it.

Graphite
can
be
used
to
make
graphene
sheets
that
are
said
to
be
100
times
stronger
and
10
times
lighter
than
steel.

A
future
use
of
graphene
is
in building
a
detector
of
long
wavelength
light,
which
could
improve
night-vision
goggles,
chemical
analysis
tools
and
airport
body
scanners.
Inventor
and
physicist
Michael
Fuhrer
says
the
graphite
detector
is
as
sensitive
as
any
existing
detector,
but
far
smaller
and
more
than
a
million
times
faster.

Graphene
truly
is
a
wonder
material.

Hydrogen
fuel
cells

Another
interesting
yet
under-reported
usage
of
graphite
is
in
hydrogen
fuel
cells.
The
latter
are
frequently
used
in
fleet-type
applications
such
as
buses,
which
operate
in
a
number
of
US
states
and
the
UK.

As
the
technology
advances,
however,
car
manufacturers
are
looking
at
it
on
a
larger
scale.
That’s
because
vehicles
powered
by
fuel
cells
can
deliver
electric
power
at
ranges
equivalent
to
internal
combustion
engines
—
a
limitation
of
battery-powered
EVs.

How
is
graphite
used
in
fuel
cells? According
to
Innovation
News
Network,

Graphite
in
fuel
cells
is
used
as
a
conductive
material
for
the
bipolar
plates,
which
are
an
essential
component
of
the
fuel
cell
structure.
Super
thin
graphite
bipolar
plates
must
be
pure
and
of
high
quality
to
improve
electrical
and
thermal
conductivity,
as
well
as
ensure
long-life
operation.

The
bipolar
plates
in
proton-exchange
membrane
fuel
cells,
one
of
the
most
popular
technologies,
require
large
flake,
high-purity
graphite.
Fine
grained
graphite
is
also
used
as
additives
and
fillers,
but
this
is
a
relatively
small
component
of
fuel
cells.

Graphite
is
used
also
in
GDL,
where
graphite
is
impacting
the
porosity
of
this
layer.

Finally,
high-purity
graphite
is
used
as
catalyst
substrate,
enabling
the
precious
catalyst
metals
to
be
in
close
contact
with
the
reactant
chemicals,
while
avoiding
any
contamination.

Graphite
market

China
is
by
far
the
biggest
graphite
producer
at
about
80%
of
global
production.
It
also
controls
almost
all
graphite
processing,
establishing
itself
as
a
dominant
player
in
every
stage
of
the
supply
chain.

After
China,
the
next
leading
graphite
producers
are
Mozambique,
Brazil,
Madagascar,
Canada
and
India.
The
US
currently
produces
no
graphite,
and
therefore
must
rely
solely
on
imports
to
satisfy
domestic
demand.

Deficits
are
expected
to
kick
in
by
2025
as
new
graphite
mines
fail
to
keep
up
with
surging
demand
from
automakers.

Some
of
the
world’s
largest
auto
and
battery
makers
aren’t
waiting
until
that
happens.
They,
and
the
US
government,
are
racing
to
secure
graphite
supplies
ahead
of
a
coming
supply
shortage.

Tesla
and
Panasonic
are
among
the
companies
that
have
signed
graphite
off-take
agreements.
Syrah
Resources,
for
example,
has
an
off-take
with
Tesla
to
ship
graphite
from
its
mine
in
Mozambique
to
a
processing
facility
in
Louisiana. 

According
to
the
USGS,
the
battery
end-use
market
for
graphite
has
already
leaped
by
250%
since
2018.
It’s
thought
that
battery
demand
could
gobble
up
well
over
1.6
million
tonnes
of
natural
flake
graphite
per
year.

For
context,
2023
mine
supply
was
1.6
million
tonnes,
which
means
we’re
very
close
to
entering,
if
not
already,
a
period
of
deficits.
Benchmark
Mineral
Intelligence
projects
natural
graphite
will
have
the
largest
supply
shortfalls
of
all
battery
materials
by
2030,
with
demand
outstripping
expected
supplies
by
about
1.2
million
tonnes.

According
to
a
BMI
analysis,
graphite
demand
is
likely
to
grow
by
a
factor
of
eight
by
2030
over
2020,
and
25
times
by
2040.
That
translates
into
a
predicted
supply
shortfall
of
30%
for
graphite,
compared
to
11%
for
lithium,
26%
for
nickel,
and
6%
for
cobalt.

By
then,
the
world’s
graphite
supplies
will
not
even
be
able
to
cover
demand
for
EVs,
let
alone
all
end-use
sectors,
BMI
projections
showed.

And
this
is
just
counting
EV
battery
use;
the
mining
industry
still
needs
to
supply
other
end-users.
The
automotive
and
steel
industries
remain
the
largest
consumers
of
graphite
today,
with
demand
across
both
rising
at
5%
per
annum.

BMI
has
said
as
many
as
97
average-sized
graphite
mines
need
to
come
online
by
2035
to
meet
global
demand.
That’s
about
eight
new
mines
a
year,
which
at
first
may
seem
doable
but
considering
the
number
of
graphite
projects
worldwide
and
the
time
it
takes
to
develop
them
into
mines,
we’re
really
up
against
it.

Given
that
demand
for
graphite
is
accelerating
at
a
rate
never
seen
before,
and
the
EV
industry
is
gradually
shifting
towards
natural
graphite,
the
impending
supply
crunch
could
get
serious.

Conclusion

Graphite
is
included
on
a list
of
23
critical
metals the
US
Geological
Survey
has
deemed
critical
to
economy
and
national
security. 

With
the
exception
of
Syrah
Resources,
which
has
a
processing
plant
in
the
US
not
a
mine,
the
United
States
currently
imports
100%
of
its
graphite.
Another
way
of
saying
this
is
the
US
has
zero
production.
With
70%
of
the
world’s
graphite
supply
coming
from
China,
how
will
the
United
States
compete
in
these
new
technologies
that
are
shaping
our
world?
Are
we
going
to
own
what
we
need
here
or
buy
it
from
other
countries?
Current
events
are
teaching
us
how
dangerous
it
is
to
rely
on
foreign
sources,
in
a
world
where
adversaries
can
use
access
to
materials
as
an
economic
weapon.

American
manufacturing
including
equipping
the
US
military
with
the
most
advanced
weapons
systems
in
the
world
is
untenable
without
domestic
production
of
graphite
and
other
critical
minerals.
Take
another
look
at
the
pictures
above.
Graphite
is
used
in
almost
every
component
of
the
most
advanced
fighter
planes,
and
in
many
tank
parts.
Graphite
is
used
to
make
non-lethal
bombs
that
disable
electrical
grids
and
as
an
obscurant
smoke
on
the
battle
field.
Synthetic
graphite
is
employed
directly
in
graphite
nozzles,
used
in
high-powered
rockets.

If
anyone
needs
a
secure
supply
of
graphite,
it’s
the
U.S.
Defense
Department!

As
much
as
the
United
States
wants
to
keep
pace
with
China
in
the
global
EV
race,
and
militarily,
it
can’t
do
so
without
a
reliable
graphite
supply.
Remember,
the
US
currently
does
not
mine
any
graphite.
It
has
to
rely
on
imports.

In
2023
the
US
imported
84,000
tons
of
natural
graphite,
of
which
89%
was
flake
and
high-purity.
The
top
importers
were
China
(42%),
Mexico
(16%),
Canada
(15%)
and
Madagascar
(12%).

But
taking
into
account
the
fact
that
EV
batteries
require
run-of-mine
graphite
to
go
through
purification
and
coating,
a
process
controlled
by
China,
the
US
is
actually
not
42%
dependent
on
China
for
its
battery-grade
graphite,
but
100%.
This
is
a
precarious
position
to
be
in,
economically,
strategically
and
militarily.

This
is
why
graphite
is
firmly
placed
on
the
US
government’s
critical
minerals
list,
and
is
identified
as
one
of
five
key
battery
minerals
that
are
at
risk
of
supply
disruptions.

The
demand
for
graphite
is
only
headed
in
one
direction
— up.

We
have
clearly
reached
a
point
when
much
more
graphite
needs
to
be
discovered
and
mined.

Legal
Notice
/
Disclaimer

Ahead
of
the
Herd
newsletter,
aheadoftheherd.com,
hereafter
known
as
AOTH.

Please
read
the
entire
Disclaimer
carefully
before
you
use
this
website
or
read
the
newsletter.
If
you
do
not
agree
to
all
the
AOTH/Richard
Mills
Disclaimer,
do
not
access/read
this
website/newsletter/article,
or
any
of
its
pages.
By
reading/using
this
AOTH/Richard
Mills
website/newsletter/article,
and
whether
you
actually
read
this
Disclaimer,
you
are
deemed
to
have
accepted
it.

Any
AOTH/Richard
Mills
document
is
not,
and
should
not
be,
construed
as
an
offer
to
sell
or
the
solicitation
of
an
offer
to
purchase
or
subscribe
for
any
investment.

AOTH/Richard
Mills
has
based
this
document
on
information
obtained
from
sources
he
believes
to
be
reliable,
but
which
has
not
been
independently
verified.

AOTH/Richard
Mills
makes
no
guarantee,
representation
or
warranty
and
accepts
no
responsibility
or
liability
as
to
its
accuracy
or
completeness.

Expressions
of
opinion
are
those
of
AOTH/Richard
Mills
only
and
are
subject
to
change
without
notice.

AOTH/Richard
Mills
assumes
no
warranty,
liability
or
guarantee
for
the
current
relevance,
correctness
or
completeness
of
any
information
provided
within
this
Report
and
will
not
be
held
liable
for
the
consequence
of
reliance
upon
any
opinion
or
statement
contained
herein
or
any
omission.

Furthermore,
AOTH/Richard
Mills
assumes
no
liability
for
any
direct
or
indirect
loss
or
damage
for
lost
profit,
which
you
may
incur
as
a
result
of
the
use
and
existence
of
the
information
provided
within
this
AOTH/Richard
Mills
Report.

You
agree
that
by
reading
AOTH/Richard
Mills
articles,
you
are
acting
at
your
OWN
RISK.
In
no
event
should
AOTH/Richard
Mills
liable
for
any
direct
or
indirect
trading
losses
caused
by
any
information
contained
in
AOTH/Richard
Mills
articles.
Information
in
AOTH/Richard
Mills
articles
is
not
an
offer
to
sell
or
a
solicitation
of
an
offer
to
buy
any
security.
AOTH/Richard
Mills
is
not
suggesting
the
transacting
of
any
financial
instruments.

Our
publications
are
not
a
recommendation
to
buy
or
sell
a
security
–
no
information
posted
on
this
site
is
to
be
considered
investment
advice
or
a
recommendation
to
do
anything
involving
finance
or
money
aside
from
performing
your
own
due
diligence
and
consulting
with
your
personal
registered
broker/financial
advisor.

AOTH/Richard
Mills
recommends
that
before
investing
in
any
securities,
you
consult
with
a
professional
financial
planner
or
advisor,
and
that
you
should
conduct
a
complete
and
independent
investigation
before
investing
in
any
security
after
prudent
consideration
of
all
pertinent
risks. 
Ahead
of
the
Herd
is
not
a
registered
broker,
dealer,
analyst,
or
advisor.
We
hold
no
investment
licenses
and
may
not
sell,
offer
to
sell,
or
offer
to
buy
any
security.