LEXINGTON, Ky. — Researchers at the University of Kentucky are developing a process to transform the state's coal resources into synthetic graphite for lithium-ion batteries, positioning Kentucky to compete in a critical global supply chain currently dominated by China.

The Center for Applied Energy Research project, led by Matthew Weisenberger, aims to address a critical vulnerability in the U.S. battery supply chain. China currently controls more than 90 percent of global battery-grade graphite production, creating geopolitical and economic challenges for American manufacturers as demand for electric vehicle batteries surges.

Graphite is essential to lithium-ion batteries, with an average EV battery requiring about 165 pounds of graphite. The UK researchers have developed a direct coal liquefaction process that blends powdered coal with petroleum refining byproducts and heats the mixture to 400 degrees Celsius. The approach has shown promising results, generating 39 percent more graphite than using petroleum products alone.

"Everything has a battery in it now," Weisenberger noted, pointing to growing demand from portable electronics, electric vehicles, and increasingly, battery energy storage systems for residential use and grid support. The economics are compelling — coal costs approximately $100 per ton compared to $400 per ton for traditional petroleum-based precursors.

The CAER facility is uniquely equipped to manage the entire production cycle under one roof, from raw coal processing to graphite refinement to battery testing. This comprehensive approach allows researchers to conduct rigorous performance evaluations across hundreds of charge and discharge cycles, a capability few institutions possess.

CAER director Rodney Andrews described the research as "a bridge between Kentucky's leadership in energy production and its future as a hub for advanced materials." The center recently hosted its third annual graphite industry roundtable, convening major U.S. manufacturers and supply chain stakeholders to address national needs.

The timing is critical. Ford and BlueOval SK's battery plant in Hardin County and other Kentucky battery manufacturing projects underscore the state's emerging role as a U.S. EV battery hub. Domestic graphite production would support these operations while reducing reliance on Chinese sources amid escalating trade tensions and supply chain vulnerabilities.