The pencil was invented in about 1662 by Friedrich Staedtler. The Nuremberg craftsmen’s supervisory body forbade him to make pencils because he was a joiner, not a white-lead-maker. (Günter Stössel, Nürnberg bei Fürth, ISBN 3 87191 323 5)
But the plot thickens. The only deposit of graphite in solid form ever found was in Cumbria in northern England.
bq. The first attempt to manufacture graphite sticks from powdered graphite was in Nuremberg, Germany in 1662. They used a mixture of graphite, sulphur and antimony. Though usable they were inferior to the English pencils.
bq. The local name for graphite was “Wad” and even recently a graphite pencil was referred to locally as a “Wad” pencil. In the first half of the 18th Century much stealing and smuggling of the “Wad” was carried on. In 1752 an Act of Parliament was passed making it a felony to steal or receive “Wad”, punishable by hard labour or transportation.