IM Data had calculated that Tesla's plant - which is set to be based in the south-west US - would consume at least 28 000 t of spherical graphite every year if operating at capacity. While research and development firms have been actively exploring non-graphitic carbon anode alternatives, the position of graphite anodes as the current material of choice for lithium-ion battery producers means the graphite industry is likely to be the beneficiary of this growth, the analysts wrote. Whether Tesla plans to use spherical graphite - made from large natural flake graphite – or synthetic materials, expansion of the battery market for electric vehicles on this scale presents a valuable opportunity to graphite suppliers. The factory would also impact lithium, another critical element in electric vehicle batteries, and which is sourced mainly from South America and Australia.