Roskill has reported that over the last decade, the development of thermal and chemical processes to produce high-purity natural graphite has enabled a more effective use of graphite resources, as lower grade ores and fines can be transformed into grades suitable for use in demanding applications such as batteries. Markets previously lost to synthetic graphite, such as batteries and carbon parts now offer opportunities for growth. High-grade graphite can be further processed by means of intercalation and thermal shock to produce expanded graphite. Materials such as graphite foil, based on expanded graphite, now form the fastest growing end-use sector for graphite. It is characterised by low-volume, high-value applications including gaskets and seals, heat sinks and bipolar plates for fuel cells and flow batteries. China is by far the largest producer and consumer of natural graphite. In 2008, it accounted for around 80% of supply, although the rate at which mine production has grown has slowed to 1.6%py since 2001. In contrast, output in Brazil, Sri Lanka and North Korea has increased at higher rates ranging from 3.5%py to over 6%py. Increasing demand for flake graphite has led to a number of potential developments outside China that could add a total of 70,000tpy to global supply. Chinese production is still characterised by a large number of small companies but larger producers are emerging in both Heilongjiang and Hunan. There are now seven Chinese companies capable of producing more than 30,000tpy of natural graphite. Increasing regulation of mine safety and plant emissions, together with the imposition of export taxes and permits is likely to lead to further consolidation. Existing and anticipated restrictions in the availability of Chinese graphite in the world market have encouraged foreign producers and processors to invest in production bases in the country. The Asia region is set to increase in importance for natural graphite as Chinese consumption is forecast to increase by 8%pa from 2010. The Economics of Natural Graphite (7th Edition 2009) is available at GBP 2500 / USD 5000 / EUR 4000 from Roskill Information Services Ltd, 27a Leopold Road, London SW19 7BB, England.