----Interview with Xiaoming Xia
Chief Marketing Officer
China National Building Material Heilongjiang Graphite New Materials Co., Ltd.
China National Building Material Heilongjiang Graphite New Materials Co., Ltd. is located in the Graphite Industrial Park of Hengshan District, Jixi City—known as the “Capital of Graphite in China.” The company is jointly funded by two Global Fortune 500 enterprises, China National Building Material Group (CNBM) and BAIC Group, together with the Jixi Municipal Government. It possesses integrated capabilities for R&D and production covering the entire graphite value chain from raw material to finished material. Its products are widely applied in steel, metallurgy, new energy, and chemical industries.
Asian Metal: Welcome, Mr. Xia. To start, could you please introduce your company?
Mr. Xia: China National Building Material Heilongjiang Graphite New Materials Co., Ltd. (abbreviated as “CNBM Heilongjiang Graphite”) is located in the Graphite Industrial Park of Hengshan District, Jixi City, Heilongjiang Province, the “Capital of Graphite in China.” The company is a joint venture established by China National Building Material Group, BAIC Group, and the Jixi Municipal Government. Upholding CNBM’s mission of “Materials Create a Better World,” the company is dedicated to the R&D and manufacturing of graphite new materials, offering integrated production capabilities from raw material to finished material. Our products are widely used in the steel, metallurgy, new energy, and chemical sectors, providing first-class products and services to our clients. The company’s Liumao Graphite Mine has a history of more than 80 years in mining and beneficiation and is regarded as the “cradle of China’s graphite industry.”
Asian Metal: What are your company’s core competitive advantages?
Mr. Xia: Our core strengths can be summarized in five aspects. First, resource advantage. The company has abundant graphite reserves. Our own mining area covers 1.28 square kilometers with proven reserves of 236 million tons and an average ore grade of 10%, ranking among the world’s rare high-quality large-flake graphite deposits. Second, technological advantage. With over 80 years of experience in natural graphite mining and beneficiation, we have accumulated deep technical expertise. Our product portfolio covers more than 100 grades, including high-purity, high-carbon, medium-carbon, low-carbon, micro-powder, and expandable graphite, making us one of the most comprehensive producers of flake graphite in China. Third, supporting facilities advantage. The company boasts complete supporting infrastructure, including its own tailings pond, dedicated railway line, substation, and water supply facilities, ensuring uninterrupted production for over 40 consecutive years. Fourth, brand advantage. Our “Liumao” brand flake graphite is one of the earliest registered trademarks in China’s graphite industry and enjoys a global reputation. The product has won the National Product Quality Gold Award and earned long-term trust from our customers. We have established partnerships with over 100 domestic premium clients, and our products are exported to nearly 20 countries, including the United States, the United Kingdom, India, Japan, and South Korea. Fifth, innovation advantage. The company has made significant investments in the new energy sector, with a current production capacity of 30,000 tons of spherical graphite, 20,000 tons of purified graphite, and 10,000 tons of anode materials. Our newly developed SG6 product has won industry awards and is mainly applied in 6C fast-charging projects, having passed international 6C X project R&D verification.
Asian Metal: Could you review the flake graphite price trend since the beginning of this year?
Mr. Xia: In the first half of this year, prices remained at the low levels seen last year, continuing to operate in a bottom-range zone. The downturn in traditional downstream sectors—particularly the steel industry—has led to reduced graphite consumption. Although the new energy sector maintained around 25% growth, fierce price competition from synthetic anode materials eroded the cost advantage of natural graphite, leading to weaker demand from battery manufacturers. Coupled with export control measures, the industry has faced overcapacity and falling prices, leaving many producers at or near breakeven. About 30% of graphite enterprises in China have suspended or partially halted production. For example, the mainstream -194 grade fell from RMB5,000/t in 2023 to RMB2,500-2,600/t in 2025, a drop of over 50%. In contrast, large-flake graphite prices have remained relatively firm. Due to mining accidents in Jixi in the first half of 2024, most enterprises suspended operations for about five months, leading to a supply shortage that pushed prices up to RMB8,300/t. With supply recovery this year, prices have eased slightly to RMB8,000-8,100/t.
Asian Metal: How do you expect flake graphite prices to move in the fourth quarter?
Mr. Xia: Given the current oversupply and imbalance between production and demand, prices may see a further modest decline of around RMB100-200/t. Large-flake graphite may face additional downward pressure of about RMB300/t due to imports and low-quality domestic competition, though high-grade large flake prices are expected to remain relatively stable.
Asian Metal: What is the current demand situation for flake graphite, and what are the future trends?
Mr. Xia: From the supply side, although some enterprises remain idle, new projects with larger scale and lower costs are coming online, pushing total capacity upward. Annual output is expected to reach 1.0–1.2 million tons, assuming no major external disruptions. On the demand side, traditional steel-related consumption continues to decline due to industry contraction, while natural graphite anode materials in the new energy sector have yet to see significant growth. Total demand is estimated at around 900,000 tons, meaning oversupply persists. However, from a long-term perspective, the industry outlook remains positive. After this round of market adjustment, industry concentration will increase significantly. Enterprises with high-quality resources, stable customers, and integrated production capabilities will gain stronger market influence and lead the industry toward healthier, more sustainable development.
Asian Metal: What impact has the export control policy had on the flake graphite market?
Mr. Xia: Export control has had a twofold impact. While overall export volumes of graphite-related products have declined, imports have also decreased due to low domestic anode material prices. The restrictions have affected deep-processing products more noticeably. In the long term, as international relations gradually stabilize, export restrictions—except for military-related products—are likely to be relaxed. Recently, we’ve observed signs of accelerated customs clearance and increased export volumes.
Asian Metal: How do you view the rapid expansion of Africa’s graphite industry?
Mr. Xia: Africa has abundant graphite resources and its production scale will continue to grow. However, its processing technologies and supporting infrastructure remain underdeveloped, meaning production still focuses on flake graphite exports, while large-scale deep processing remains difficult. Therefore, high-end products from Africa cannot yet replace those from China. If China’s export controls are eased, we will continue to hold a strong advantage in both quality and cost. In the future, the global graphite industry will likely form a structure where China remains the main production hub, complemented by Africa. The two regions are not pure competitors but will increasingly collaborate based on resource and product advantages to provide the global market with cost-effective and high-performance graphite materials.
Asian Metal: Could you tell us about your company’s new projects?
Mr. Xia: The company is currently advancing the construction of a 100,000-ton flake graphite beneficiation plant, with “automation and intelligence” as its core development goal. This project represents a key step in strengthening our mining–processing integration and improving production efficiency. Upon completion, it will serve as a benchmark for “green and intelligent” production, further reinforcing the “Liumao” brand’s competitiveness in product variety and quality, and better meeting domestic and international demand for high-purity, high-quality graphite concentrates. It will also lay a solid foundation for the company’s continued advancement in the graphite new materials sector.
Asian Metal: What are your company’s future development plans?
Mr. Xia: Over the next three to five years, CNBM Heilongjiang Graphite will focus on three strategic directions: deepening resource development, achieving technological breakthroughs, and expanding market presence. The company aims to transform from a single production enterprise into an integrated “resource + technology + service” provider, ultimately realizing our vision of becoming a “global leader in comprehensive graphite new materials solutions.”
