Tony Alderson

US federal agencies have emerged as major backers of the country’s graphite anode supply chain. Across August and September, the US Army and Export-Import Bank (EXIM) have provided funding or land for projects that have struggled to secure private investment. In August, EXIM approved a USD $25 million direct loan for Phase I of Westwater Resources' Kellyton, Alabama plant under its Make More in America Initiative. Phase I is designed to produce ~12.5ktpa of coated spherical purified graphite (CSPG). “Loans, land and grants are lowering the cost of building plants, and tariffs are closing most of the running-cost gap,” said Tony Alderson, Research Manager at Benchmark. “With buyers increasingly willing to pay for traceable, non-Chinese material, US projects are closer to competing than headline costs suggest.”

The divergence between natural and synthetic anode active material (AAM) prices observed earlier in the year stopped widening in Q3, with prices across both chemistries and all capacities remaining flat from mid-June- to mid-September. However, this midstream stability contrasted with continued movement in the feedstock markets during the same period, notably for coke materials, with pre-calcined pet coke prices rising 6.5% across July and August. “Q3 was characterised by a clear standoff between rising synthetic graphite feedstock costs and an oversupplied AAM market,” said Tony Alderson, anode and graphite research manager at Benchmark. “Producers absorbed the additional cost pressure rather than risk raising prices and losing market share. Meanwhile, coarser natural graphite flake grades continued to soften globally, whilst finer mesh material remained stable after reaching already depressed price lows from Q4 2025.”

Following the 2011 Fukushima disaster, the uranium market and price environment remained muted, as reactor shutdowns vaporised demand faster than mine supply could adjust. Now, however, the uranium market is entering a structural deficit, as assessed by Benchmark's Uranium Service. The market is already in a marginal deficit for 2026. As nuclear power plays a growing role in the roll-out of data centres and other industries, this deficit is forecast to grow, and will continue to expand unless new supply can be brought online.

The US government has signed nearly $2 billion in deals looking to strengthen the US’s supply chain security for critical minerals and technologies. The capital takes multiple forms from equity loans to direct investments. The largest is a $1.4 billion conditional loan to Sila Nanotechnologies, a US-based silicon anode company. The company currently operates a facility in Moses Lake, Washington with plans for a second phase of production towards the end of the decade. This latest round of funding builds on the plethora of investments the US has made in the battery and critical mineral space over the course of Donald Trump’s second presidency such as investing in MP Materials’ rare earths project and Ivanhoe Electric’s Santa Cruz copper project. “While the Trump Administration continues to invest in critical minerals, know-how, and strategic technologies to build a mine-to-magnet supply chain, these recent investment announcements also reflect the US ambition to build a next-generation mine-to-battery supply chain to reduce its dependence on China,” said Bryan Bille, Benchmark’s policy and geopolitics principal.

Recent offtake agreements and project developments highlight accelerating efforts to establish a European anode supply chain spanning both natural and synthetic graphite. Swedish graphite developer Talga Group has recently announced three supply arrangements linked to its planned Vittangi operations in Sweden, as a growing number of customer agreements points to rising interest in European-origin natural-graphite anode active material (AAM) supply. Talga’s vertically integrated project is set to have a nameplate capacity of 19.5ktpa of AAM for premium high-performance battery applications. “The Vittangi project also exemplifies a domestic supply model, sourcing raw materials in Sweden, where it is located,” said Tony Alderson, a research manager at Benchmark. “This contrasts with wider efforts to diversify supply chains away from China, which have increasingly focused on African sources.”

The cathode active material (CAM) market experienced notable price volatility throughout the Q2 assessment period. Prices increased during the early part of the quarter as lithium and other feedstock costs rose amid strong electric vehicle, export and energy storage demand. This was followed by softening prices in the later May assessment, declining further through July as lithium and precursor prices weakened.

Trends in anode active material (AAM) prices showed clear divergence between synthetic and natural graphite material in Q2 2026. Synthetic graphite AAM prices increased as demand strengthened and feedstock costs rose. Natural graphite AAM prices, meanwhile, remained broadly unchanged amidst weaker relative demand, substitution pressure and relatively stable feedstock prices. The divergence was most evident in June, when synthetic graphite producers began passing through earlier feedstock cost increases. By contrast, natural graphite AAM remained relatively rangebound throughout the quarter. As such, low-energy synthetic AAM prices rose above $2,900/tonne, reaching parity with and then exceeding natural graphite AAM for the first time since May 2023.

The Middle East is rapidly establishing itself as a key growth hub for the anode supply chain, underpinned by large-scale investments, strategic geographic positioning, and competitively priced energy. The region’s push into battery materials reflects a broader shift as Gulf economies look to diversify away from hydrocarbons and position themselves within the global energy transition. As of 2026, the region has no active capacity, yet Benchmark data shows that the Middle East will account for 11% of 2030 capacity for traditional anode active material (AAM) in the ex-China market, with this share remaining broadly stable through to 2035.

Companies developing silicon-based anode technology have drawn more than USD $1.29 billion in ex-China investment since Benchmark began tracking new investments into the industry in 2024. Benchmark’s Energy Transition Capital Briefing database records 17 funding rounds from January 2024 to February 2026, ranging from seed funding rounds to large-scale equity funding rounds. It follows major earlier investments into silicon anode players, including $80m in UK-headquartered Nexeon in 2022.

Mozambique has enacted sweeping mining reforms that will fundamentally alter the terms on which mining ventures are developed in the country. President Daniel Chapo signed the new mining law on 3 June, following parliamentary approval in May. The legislation mandates a minimum 15% free-carried and non-dilutable state equity stake, held through the National Mining Company (ENM), across all mining projects, with that share able to increase further.

Tesla has withdrawn its notice to terminate a graphite anode supply agreement with Australia’s Syrah Resources, ending a protracted negotiation process and restoring a strategically important supply link within the US battery materials ecosystem. The dispute, which saw both parties extend a resolution deadline four times, centred on commercial terms and performance expectations tied to Syrah’s Vidalia facility in Louisiana. Under the original 2021 agreement, Syrah committed to supplying 8,000 tonnes of graphite anode material to Tesla over a four-year period, making it one of the first commercial-scale North American supply arrangements of its kind.

The CAM market recorded a strong first quarter, with prices rising sharply throughout January and February before stabilising in March as feedstock volatility eased and battery demand remained steady. Benchmark data shows that LFP CAM prices increased by ~38% between mid-January and mid-March, whilst NCM811 rose by ~25% over the same period.