Expanding the market, breaking the bottleneck, the graphite industry is accelerating

Graphite, a crucial strategic resource, has gained increasing attention from both the industry and national authorities. In recent years, with the rapid growth of high-tech sectors such as electronics, new energy, environmental protection, and aerospace, new graphite materials have found vast market opportunities. The pace of technological upgrades and intensive processing in the graphite industry has also accelerated. At the recent Zhangzhou Microcrystalline Graphite Industry Development Summit, over 200 representatives from government, industry, academia, and research institutions engaged in extensive discussions on the development of the graphite sector. During the event, the Microcrystalline Graphite Industry Alliance was established, and several agreements, including "Enterprise-University R&D Cooperation," were signed. Despite its high value, known as “black gold,” China's graphite industry faces challenges. According to Liu Ronghua, deputy secretary-general of the Graphite Professional Committee of the China Non-Metallic Mining Industry Association, graphite possesses unique physical and chemical properties, making it widely used in metallurgy, machinery, electronics, chemicals, light industry, military, defense, and aerospace. However, despite being one of the world’s largest graphite producers—accounting for about 70% of global reserves—China still lags behind in advanced processing technologies. Core technologies in high-end products are mostly controlled by developed countries like the U.S., Germany, Japan, and Russia, leading to a bottleneck in domestic development. Currently, China is experiencing an oversupply of low-end graphite products due to outdated production techniques and limited technological innovation. This has led to lower profit margins and intense competition. As demand for high-end applications like fuel cells, lithium-ion batteries, and supercapacitors grows, the gap between supply and demand becomes more evident. Low-value products are struggling to find buyers, while the need for advanced materials continues to rise. To address these issues, industry leaders emphasize the importance of industrial upgrading. Xiang Qi, secretary general of the Graphite Professional Committee, states that improving management, adopting advanced technology, and enhancing R&D capabilities are key steps toward sustainable development. Government support, stricter regulations, and enterprise innovation are essential to drive progress. In response, many regions with rich graphite resources have introduced policies to promote deep processing and industrial transformation. For example, Heilongjiang Province has implemented measures to reduce pollution, upgrade technology, and extend the industrial chain. Cities like Jixi are focusing on building clusters around graphite-based new materials, such as sealing and energy storage materials. Meanwhile, the Luobei Graphite Industrial Park has become a model for efficient resource utilization and industrial restructuring. With the growing demand for lithium battery anode materials, the potential for deep processing is immense. According to estimates, by 2020, the electric vehicle market could require over 240,000 tons of anode material, significantly boosting the value of processed graphite. Encouraging investment in deep processing projects can help better protect resources and maximize their economic value. National and local governments should support such initiatives, and financial capital should be introduced to create a more sustainable and competitive graphite industry.

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