Graphite Supply and Demand and the Electric
About Flake Graphite
Graphite is an essential component of our daily lives. It is extremely heat-resistant and highly conductive. One of the current demand drivers is the Electric Vehicle Industry (EV).
Graphite forms the anode portion of an EV battery. To provide an example, a single battery used in a Nissan Volt requires 55 kg of graphite. This graphite is going to have to come from somewhere. It can be produced synthetically using by-products from oil refineries and applying extreme heat, but this is very expensive and has a huge environmental impact.
Graphite found in the ground has already been produced by Nature. E-Power Resources is focused on finding, quantifying and delineating that graphite already produced by nature, thus seizing a link in the EV supply chain, especially in mining-friendly Quebec. North America has only one producing graphite mine and it contributes less than 1% of global graphite supply. More North American solutions are needed to support the plethora of battery production scheduled to come online in the next 2 years.
https://pubs.usgs.gov/periodicals/mcs2022/mcs2022-graphite.pdf *This is a link to the US Geological Survey Report on Graphite for 2022. According to it, China is estimated to have produced 82% of world graphite supply in 2021, followed by Brazil (7%), Mozambique (3%), Russia (3%), and Madagascar (2%). Canada produces less than 1% and the US produces nothing.
*A Tesla contains over 100kg of graphite. These raw materials are in an electric car battery of 50 kWh, according to the ADAC six months ago: 6kg of lithium, 10kg of manganese, 11kg cobalt, 32kg of nickel, 100kg graphite.
Resources:
- Graphite Outlook 2022
- U.S. Geological Survey, Mineral Commodity Summaries. January 2022
- https://www.youtube.com/watch?v=m9SFoyBxHSQ
THE ENORMOUS POTENTIAL OF GRAPHITE
Natural vs.Synthetic Graphite Synthetic graphite is made by applying extreme heat, similar to volcanic activity, to petroleum coke, ironically a by-product of oil refineries, or to coal tar. The carbon footprint and energy required are huge. According to the Washington Post, the difference in CO2 emissions is between 2.5 and 5x that of mining natural graphite. Natural graphite has already been produced by Mother Nature and is extracted by mining.Types of graphite: Flake graphite
Flake graphite occurs as isolated, flat, plate-like particles with either hexagonal or angular edges. It is found in metamorphic rocks — such as limestone, gneiss and schist — and is distributed uniformly throughout the body of the ore or in concentrated, lens-shaped pockets. Today, flake graphite is one of most desireable types of graphite, largely due to its applications in the auto industry. It’s the type of graphite required for the anodes of the lithium-ion batteries used in electric vehicles, and as production of these vehicles grows — spurred on by companies like Tesla (NASDAQ:TSLA) — flake graphite demand is seen increasing. Flake graphite comes in four basic sizes: jumbo, large, medium and fine. And while it can be tough to understand how they differ and how each size relates to purity, it’s important for graphite-focused investors to get a handle on those topics. According to Stephen Riddle, CEO of privately owned Asbury Carbons, a supplier of carbon and graphite products for various industrial applications, industry standards for flake size are as follows:- Jumbo flake: +35 mesh or +500 microns
- Large flake: -35 mesh by 50 mesh or -300 microns by 500 microns
- Medium flake: -50 mesh by 80 mesh or -150 microns by 300 microns
- Fine flake: -80 mesh and finer