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around 17 kg of CO2 emissions per kilogram produced. In coal-reliant regions like Inner Mongolia, this figure can rise to 40 kg per kilogram.
Figure 1: Graphite demand / supply showing market deficit beginning 2025E Source: Macquarie Research( March 2023)
graphite domestically, relying mostly on imports. Around 80 % of the world’ s graphite supply currently originates from China, creating substantial geopolitical risks. By 2030, graphite demand is expected to surpass supply by more than 15 %, posing a serious bottleneck for dependent industries like steelmaking.
The Hidden Fossil Footprint of Graphite
Graphite comes in two main forms: natural and synthetic. Natural graphite, mined from the earth, causes environmental harm such as deforestation and water pollution, and it also faces supply risks due to geographic concentration. However, natural graphite is unsuitable for EAF electrodes because it lacks sufficient strength, density, and conductivity. needle coke( a petroleum refining by-product) and coal tar pitch, dominates electrode manufacturing. Converting coke and pitch into graphite requires substantial electricity, which can contribute significantly to its overall emissions, depending on the energy source used. The production process also directly emits CO2 due to the chemical composition of raw materials. Imported synthetic graphite from China averages
Moreover, graphite electrodes used in steelmaking are mostly carbon. Their combustion releases an additional 3.67 kg of CO2 per kilogram, significantly contributing to direct( Scope 1) emissions. With the European carbon price( ETS) projected to rise significantly, to € 150 per ton of CO2 from today’ s € 70, steelmakers face increasing production costs.
For industries pursuing emissions reductions, this is a critical challenge. European steelmakers, automakers, and clean energy companies urgently need a greener, more reliable graphite supply to meet climate targets and reduce reliance on vulnerable global supply chains.
As a result, synthetic graphite, produced from
Green Steel World | Issue 17 | April 2025 23