ExxonMobil has signed a strategic agreement with the US company, Superior Graphite, which includes the acquisition of Superior's production site in Hopkinsville, USA, and selected international offices.

Under the agreement, ExxonMobil will acquire Superior Graphite’s green graphitisation technology that produces ultra-pure synthetic graphite for use in lithium-ion battery active anode material (AAM). In June 2023, Superior Graphite announced plans to construct the battery anode facility in Hopkinsville, with a nameplate capacity of 24ktpy of synthetic graphite AAM.

The facility was designed to replicate infrastructure from Superior Graphite's existing operation in Sundsvall, Sweden, and Accelerate Capital and Stanhope Capital were appointed to manage the capital raise of US$180M to develop the project.

Exxon’s acquisition aligns with its strategy to stay competitive within the new energy paradigm, with improved needle coke feedstock and plans to begin commercial production of synthetic graphite in 2029. 

This is not the first time an energy company has invested in synthetic graphite production to support battery supply chains in North America. In 2021, Phillips 66 acquired a 16% equity stake in NOVONIX, which is developing a 20ktpy synthetic graphite AAM facility in Chattanooga, Tennessee.

Notably, China’s ongoing oversupply of synthetic graphite, coupled with declining graphite prices and regional concerns about securing graphite anodes outside of China, has led to structural changes within the synthetic graphite-electrode market. For instance, some companies have reduced production and/or shut down their refineries, whilst Japan and the EU have extended anti-dumping duties on Chinese graphite electrodes.

This trend is likely to continue, creating opportunities for energy companies to capture needle coke market share and enter the synthetic graphite industry by supplying feedstock for projects outside China.