Building a Reliable Supply of High-Quality Anode-Grade Petroleum Coke is a Strategic Imperative for India

India’s comprehensive strategy for building self-reliance towards high quality anode-grade petroleum coke should not just be limited to replacing imports with domestic volumes. It must instead build a resilient, quality-focused ecosystem.

October 28, 2026. By News Bureau

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articles

Comprehensive strategy

Green petroleum coke

IOCL

Green Needle coke

National Critical Mineral Mission

Anode-Grade Petroleum Coke

Indian Oil Corporation

Ankur Khaitan

TACC Ltd.

India’s rapid expansion in electric mobility, renewable energy storage, aluminium production and advanced manufacturing is creating a growing need for high-quality carbon materials.

India produces limited quantities of raw or green petroleum coke (GPC) domestically, primarily through select domestic refineries like those operated by Indian Oil, while relying heavily on imports. India traditionally imports nearly all of its high-grade needle coke requirements (around 80,000 to 100,000 tons per year) to support graphite electrode and electric vehicle battery anode manufacturing. To reduce reliance on global seaborne markets, domestic refiners like Indian Oil Corporation (IOCL) among others have developed indigenous needle coker units (such as at Paradip) to de-risk supply chain volatility. India’s domestic green petroleum coke production vests with noted Public and Private Sector companies at several refineries, but the availability of material with the consistent quality required for specialised anode-grade applications remains a challenge. Transforming low-sulfur petroleum coke into synthetic graphite anodes involves powder processing (milling and shaping), granulation, carbonisation, extreme high-temperature graphitisation (2,500–3,000°C), and surface carbon coating to engineer battery-grade material with high electrical conductivity and structural stability. Synthetic graphite anodes generally have better cycle life capabilities as greater number of exposed edges allow faster movement of lithium ions in and out of graphite layers.

It is important to note that China controls over 90 percent of synthetic graphite anode manufacturing and over 95 percent of global graphitisation capacity. Reducing this dependence requires India to take a multi-pronged approach to move beyond simply securing more imports.

For a long term sustainable resolution of this issue and for establishing self-reliance in supply of high quality anode grade petroleum coke a wholesome approach of fully integrated domestic carbon-material supply chain covering refinery feedstock selection, petroleum coke production, calcination, purification, graphitisation, quality control, recycling and strategic sourcing must be adopted.

To begin with India must improve the quality and consistency of domestically produced petroleum coke. Petroleum coke quality is determined by factors such as sulphur, metals, volatile matter, density, crystallinity and coke structure. India can improve the quality and consistency of its domestic petroleum coke (petcoke) by upgrading refinery feedstock selection and investing in advanced desulfurisation technologies. Domestic producers need to optimise coking configurations to manage sulfur and metal impurities effectively.

Further, refineries should assess whether changes in crude sourcing, residue blending and delayed-coking operations can improve the yield and quality of calcinable-grade coke. A national level refinery carbon quality programme comprising oil marketing companies, public/private refiners, Green Petroleum Coke (GPC) or Green Needle coke (GNC) producers and battery-material companies could be a plausible step towards establishing clear roadmap and specifications for different grades of petroleum coke. Long-term supply contracts and trading options can give refiners greater confidence to invest in process optimisation specifically for premium carbon feed-stocks.

Secondly, India needs greater investment in advanced coke-processing infrastructure. Producing suitable raw coke is only the beginning. High-value applications require sophisticated purification, milling, coating and, graphitisation. Domestic value addition can strategically reduce the country’s vulnerability to imported processed carbon materials. India’s inherent dependence on imported green petroleum coke still remains a major constraint on supply stability and cost volatilities.

A targeted incentive programme encouraging investments in high-purity GPC and synthetic graphite facilities can go a long way in building self-reliance for commercial anode materials. The Government could consider supporting the industry through accelerated depreciation, concessional financing, R&D grants and production-linked incentives tied not merely to capacity creation but also to achieving demanding technical quality and environmental standards.

The viability of any industry depends on the interplay of demand and supply therefore demand visibility must be enhanced through long-term offtake arrangements. This is my third recommendation for building India’s self-reliance in high quality anode grade petroleum coke. India’s battery ambitions are expanding rapidly.

India's annual demand for lithium-ion batteries is projected to scale rapidly from roughly 28–40 GWh, reaching between 160 GWh and 272 GWh by 2030. However, refinery and carbon-material investments require confidence that demand will remain commercially viable over many years. Battery-cell manufacturers, aluminium producers, carbon-material companies and refiners should therefore enter into long-term offtake agreements. Such contracts could substantively support investment decisions while ensuring that downstream manufacturers receive material with predictable quality, volumes and pricing. These long term contracts can send out definitive pricing signals for upstream players in the battery material ecosystem.

Fourthly, India should establish strategically diversified unavoidable import stockpiles. Complete self-sufficiency may not be feasible at the immediate outset because premium-grade petroleum coke depends on refinery configurations and feedstock characteristics. Until domestic capacity matures, India should mitigate risk by diversifying overseas suppliers rather than depending excessively on a limited number of countries or companies thereof. Long-term contracts, multiple sourcing regions and strategic inventories can protect domestic manufacturers from geopolitical disruptions, freight volatility and sudden export restrictions.

Fifthly, Research and Development and standardisation should become national priorities. India needs common technical standards defining anode-grade carbon feedstock and processed materials. Public research institutions like IITs, CSIR laboratories, refiners and private industry should collaborate on improving purification technologies, reducing energy consumption during graphitisation and developing alternative pathways to battery-grade carbon materials. Research should also focus on upgrading lower-grade domestic coke wherever technically and economically possible.

National Critical Mineral Mission offers a broader policy framework for strengthening strategic material value chains, from exploration and processing to recycling. Although petroleum coke is a refinery derivative rather than a mineral, its downstream role in the carbon-material ecosystem makes coordination with this wider critical-material strategy essential.

Finally, in this era of sustainability and circularity, recycling must become an important secondary source of carbon materials. India’s battery waste framework increasingly supports material recovery, and graphite is among the materials identified for domestic recycling and reuse. Developing efficient systems to recover and upgrade graphite from end-of-life batteries can reduce pressure on virgin imported materials over time.

India’s comprehensive strategy for building self-reliance towards high quality anode-grade petroleum coke therefore, should not just be limited to replacing imports with domestic volumes. It must instead build a resilient, quality-focused ecosystem. By improving refinery output, expanding advanced processing, securing long-term demand, diversifying imports, building strategic inventories, strengthening R&D and scaling recycling, India can progressively reduce its dependence on imported premium carbon feedstocks. A reliable domestic supply of high-quality anode-grade petroleum coke and related carbon materials will strengthen India’s battery manufacturing ecosystem, improve supply-chain resilience and support the country’s broader objective of becoming a globally competitive clean-energy manufacturing hub.

- Ankur Khaitan, MD & CEO, TACC Ltd.