----Interview with Li Dong
Executive Deputy General Manager
Heilongjiang Hagong Carbon-based Materials Technology Co., Ltd.
Heilongjiang Hagong Carbon-based Materials Technology Co., Ltd. was established in August 2018 and is located in Didao District, Jixi City. With a total investment exceeding RMB 1 billion, the company strategically holds four core subsidiaries—Guorun Mining, Hagong Graphite, High Carbon Graphite, and New Energy Materials. It has established a fully integrated graphite industrial chain encompassing natural graphite mining and beneficiation, expandable graphite preparation, high-purity graphite film processing, high-purity spherical graphite production, and anode material R&D and manufacturing, achieving comprehensive coverage from upstream resource development to high-end new material applications.
Asian Metal: Hello, Ms. Dong. Welcome to the Asian Metal interview column. First, could you please introduce the basic structure and business scope of Hagong Carbon-based Materials?
Ms. Dong: Heilongjiang Hagong Carbon-based Materials Technology Co., Ltd. was established in August 2018 and is located in Didao District, Jixi City. With a total investment exceeding RMB 1 billion, the company strategically holds four core subsidiaries: Guorun Mining, Hagong Graphite, High Carbon Graphite, and New Energy Materials. It has established a complete graphite industrial chain integrating natural graphite mining and beneficiation, expandable graphite preparation, high-purity graphite film processing, high-purity spherical graphite production, and anode material R&D and manufacturing, achieving full coverage from upstream resource development to high-end new material applications. Under its umbrella, Guorun Mining holds the core mining rights for the Ping'an graphite mine in Didao District, Jixi City. The mine has proven ore reserves of 38 million tons and mineral reserves of 5.4 million tons, with an average graphite grade of 14.22%, of which high-value large flake (+100 mesh) accounts for more than 40%. Hagong Graphite owns the Liangzhongchang graphite mine in Mishan City, with proven ore reserves of 120 million tons and mineral reserves of 9.6 million tons, with an average grade of approximately 8%. Hagong High Carbon operates an intelligent production line with an annual capacity of 70,000 tons of graphite concentrate. Hagong New Energy is equipped with 10 automated spherical graphite production lines and 2 high-purity graphite production lines, with annual capacities of 32,000 tons of high-purity spherical graphite and 20,000 tons of high-purity graphite, respectively. Hagong Carbon-based has also deployed 2 production lines for high-purity expandable graphite with a combined annual capacity of 20,000 tons, as well as 3 dedicated production lines for high-purity graphite paper and high-purity graphite film, with a total annual capacity of 3,600 tons.
Asian Metal: How did the flake graphite and expandable graphite markets perform in 2025? What is your price outlook for the first quarter of 2026?
Ms. Dong: After a prolonged downturn from 2023 to 2024, flake graphite prices remained generally stable in 2025, supported by production costs. The average annual market prices for mainstream specifications such as flake graphite -194, +895, and expandable graphite 99 80 250 were approximately RMB 2,500/t, RMB 7,800/t, and RMB 13,000/t, respectively. In the first quarter of 2026, which coincides with the winter season, most domestic producers are expected to suspend production. However, downstream consumers generally completed inventory replenishment in the fourth quarter of last year. With subdued market transactions, prices are expected to remain stable, underpinned by production costs.
Asian Metal: How were the production and sales of Hagong Carbon-based's major products last year?
Ms. Dong: In 2025, the company's flake graphite output reached approximately 65,000 tons, with a production-sales ratio of 102%. Expandable graphite output was about 18,000 tons, maintaining a balance between production and sales. For deep-processed products such as high-purity graphite paper and high-purity graphite film, which commenced production in the second half of the year, downstream demand remained stable. Order volumes were consistently strong, with production lines operating at full capacity and supply falling short of demand, achieving 100% capacity utilization. However, due to the dual impact of shrinking domestic demand for high-purity spherical graphite and export control policies on high-purity graphite, the company's high-purity spherical graphite production lines have been operating at partial capacity, posing certain challenges to its phased capacity deployment.
Asian Metal: Hagong Carbon-based launched new product lines last year. Could you elaborate on these new projects? Which downstream application areas will they primarily target?
Ms. Dong: Building upon the existing industrial foundation of flake graphite, expandable graphite, spherical graphite, and high-purity graphite, Hagong Carbon-based continues to advance capacity upgrades and product iteration. By introducing advanced carbon-based material preparation technologies and attracting high-end technical talent, we completed and commissioned a 3,600-ton production line for high-purity graphite paper and graphite film in the second half of last year. The line is currently operating at full capacity. The new projects primarily focus on the high-end carbon-based materials sector, further expanding into advanced application fields such as flexible graphite sealing, semiconductor chip supporting components, key materials for hydrogen-powered vehicles, and functional components for consumer electronics. Both product performance and market alignment have been further enhanced.
Asian Metal: What are your forecasts for supply, demand, and price trends in the flake graphite market in 2026?
Ms. Dong: Flake Graphite Market: Domestic leading enterprises such as CNBM have added 100,000 tons of new capacity. Meanwhile, graphite projects in Mozambique, Tanzania, and Madagascar have successively commenced production, adding an estimated 400,000–500,000 tons of new capacity. China's graphite imports were approximately 26,000 tons in 2024 and 45,000 tons in 2025. As African graphite continues to enter the Chinese market, imports are expected to increase further in 2026, resulting in sustained supply surplus domestically. At the same time, demand growth in downstream sectors such as metallurgy and traditional new energy remains weak. However, after the decline during 2023–2024, flake graphite prices reached the industry production cost threshold in 2025. Taking all factors into account, I expect mainstream flake graphite prices to remain stable at low levels in 2026, with neither upward momentum nor further downside room. For deep-processed products such as high-purity expandable graphite and graphite paper, supported by steady growth in downstream sectors including semiconductors, hydrogen energy, and high-end sealing, demand is expected to maintain rigid growth, with prices showing a stable-to-slightly-rising trend alongside product quality upgrades.
Asian Metal: Given the continued downturn in the flake graphite market in 2026, what core competitive advantages enable Hagong Carbon-based to succeed in this increasingly competitive environment?
Ms. Dong: Hagong Carbon-based is among the few enterprises in China’s graphite industry that have achieved closed-loop operations across the entire industrial chain, from natural graphite mining and beneficiation to deep processing. Our core competitive strengths are reflected in three aspects. First, we hold two high-grade graphite mining rights, providing industry-leading resource self-sufficiency and supply security. Second, we have strategically positioned ourselves in high-end downstream deep-processing segments, moving beyond the traditional low value-added primary processing model. Third, we fully leverage the inherent advantages of our large-flake graphite resources, realizing tiered value development and maximizing resource monetization through process optimization and product upgrading. By relying on the synergies of the integrated industrial chain, the company can effectively hedge against raw material price volatility, precisely meet customized high-end market demands, and establish differentiated core competitiveness amid intense industry competition.
Asian Metal: What are Hagong Carbon-based's development plans for the next 2–5 years?
Ms. Dong: Over the next 2–5 years, Hagong Carbon-based will adhere to an innovation-driven and technology-empowered development strategy, further strengthening integrated collaboration among industry, academia, research, and application, and leading the domestic natural graphite and carbon-based new materials industry toward high-end, refined, and intelligent transformation. The company will continue optimizing capacity allocation across the entire industrial chain, steadily expanding production scale and output value from mining and beneficiation to deep processing. We will focus on rapidly growing niche segments such as high-purity graphite, fluorinated graphite, lithium battery anode materials, and synthetic graphite sheets, thereby enhancing our high-end product portfolio. At the capital operation level, the company has defined a clear strategic objective to achieve capitalized operations by 2027, leveraging capital market resources to amplify industrial advantages, build a domestically leading and internationally recognized carbon-based new materials group, and promote the transformation of China’s graphite industry from resource advantages to comprehensive industrial and brand advantages.
Asian Metal: Thank you, Ms. Dong, for accepting our interview. We look forward to Hagong Carbon-based achieving even greater success.
Ms. Dong: Thank you to Asian Metal for providing this platform for communication with industry peers. We also hope to take this opportunity to work together with partners across the industry to jointly promote the development of the graphite sector.
