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Graphite is mined from the earth. Wood (usually California cedar) is harvested from trees.
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The wood is cut into slats half as thick as the pencils and just as long. The graphite is mixed with clay and water to produce pencil lead.
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Channels are cut in the slats to put the graphite/clay mixture. The mixture is sandwiched between two slats and glued together. Blades cut notches in the top and bottom of the sandwich, forming the hexagonal shape we know and love.
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The pencil is packaged, sharpened, and used.
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The remains of the pencil are usually lost or misplaced. A pencil that is no longer useful, it can be recycled (although it usually is not, due to public ignorance).
