These materials are prepared by treating graphite with a strong oxidant or a strong reducing agent:
The reaction is reversible.
The host (graphite) and the guest X interact by charge transfer. An analogous process is the basis of commercial lithium-ion batteries.
In a graphite intercalation compound not every layer is necessarily occupied by guests. In so-called stage 1 compounds, graphite layers and intercalated layers alternate and in stage 2 compounds, two graphite layers with no guest material in between alternate with an intercalated layer. The actual composition may vary and therefore these compounds are an example of non-stoichiometric compounds. It is customary to specify the composition together with the stage. The layers are pushed apart upon incorporation of the guest ions.