aoth-logoaoth-logoaoth-logoaoth-logo
  • Articles
    • Medical –
      • Addiction –
      • CBD –
      • Health –
      • Wellness –
    • Metals –
      • Battery Metals –
      • Critical Metals –
      • Energy Metals –
      • Industrial Metals –
      • Precious Metals –
    • Energy –
      • Nuclear –
      • Oil & Gas –
      • Renewable –
    • Environment –
      • Clean Energy –
      • Climate Change –
        • Decarbonization –
        • Electrification –
      • Pollution –
    • Markets –
      • Bitcoin –
      • Bonds –
      • Commodities –
      • cryptocurrency –
      • Currency –
      • Digital Currency –
      • Inflation –
      • Interest Rates –
    • Technology –
      • 3D Printing –
      • 5G –
      • Artificial Intelligence (AI) –
      • Blockchain –
      • Imaging –
    • Politics –
    • Education –
  • 文章
  • Company Profiles
  • News
  • Media
Home | Disclaimer | 免责声明 | Newsletter Subscribe | RSS Subscribe

5 reasons to prioritize graphite in EV push

  • Home
  • Articles
  • Metals Battery Metals
  • 5 reasons to prioritize graphite in EV push
April 19, 2022

2022.04.19

With the electric vehicle revolution taking off at full throttle, automakers worldwide are faced with the challenge of securing their supply of minerals like lithium, nickel and cobalt to build car batteries. Lithium prices in China have already reached all-time highs this year amid the global scramble for battery metals.

There is one key battery mineral, though, that has been largely overlooked by the market and should be prioritized: graphite.

An allotrope (or different physical form) of carbon, graphite is one of the hardest and most durable materials on Earth, and has been used by mankind for thousands of years. Today, it is mostly used as the “lead” in pencils and as an additive to lubricating grease. But with the pivot to vehicle electrification, graphite’s importance has grown even further.

The Canadian and US governments have already included graphite, along with other battery metals, in their respective list of minerals considered “critical” to economic and natural security.

In fact, graphite is one of only four “critical minerals” recognized by the US Geological Survey that is essential to all six industrial sectors.

There is every reason to believe that, somewhere down the road, graphite could very well match up with the likes of lithium, perhaps achieving the status of “most critical mineral” during the global EV push. Consider below:

  1. Graphite as Anode Material

The lithium-ion battery used to power electric vehicles is made of two electrodes — an anode (negative) on one side and a cathode (positive) on the other. At the moment, graphite is the only material that can be used in the anode, and there are no substitutes.

This is due to the fact that, with high natural strength and stiffness, graphite is an excellent conductor of heat and electricity. Being the only other natural form of carbon besides diamonds, it is also stable over a wide range of temperatures, with a temperature resistance that goes above 3,500 degrees Celsius — same as the outer atmosphere of the sun!

The cathode is where metals like lithium, nickel, manganese and cobalt are being used, and depending on the battery chemistry, there are different options available to battery makers (see below).

Hence, graphite can be considered indispensable to the global shift towards electric vehicles. It is also the largest component in batteries by weight, with each battery containing 20-30% graphite.

But due to losses in the manufacturing process, it could take 30 times more graphite than lithium to build a battery.

  1. Material Requirement

However, not all graphite mined naturally in open-pit and underground mines be used in EV batteries. 

Natural graphite exists in three forms, flake, amorphous, and vein or lump graphite. Only flake graphite, upgraded to 99.95% purity, can be used in batteries.

Flake graphite is made up of layers of graphene, which is the minerals’ base structural element, and is preferred by most manufacturers of refractories, batteries, crucibles, pencils, powder metallurgy, on top of lithium-ion batteries. About 40% of the world’s production is flake graphite.

The anode material — called spherical graphite — can also be manufactured from synthetic/artificial graphite, which is produced from heating petroleum coke feedstock in a special furnace, but this method is super energy-intensive.

Moving forward, the significance of natural flake graphite will rise given the stricter environmental concerns in top producer China. Due to power disruptions, the average Chinese flake graphite prices increased by 25% between May and December last year.

  1. Scorching Demand

According to Fastmarkets, a UK-based commodity price reporting agency, the current rate of EV production indicates demand for battery-grade graphite could rise by a jaw-dropping 36% this year.

“Such large growth will allow room for significant rises in both natural and synthetic graphite,” analysts at consultancy Wood Mackenzie said.

An average plug-in EV has 70 kg of graphite, or 10 kg for a hybrid. Every 1 million EVs requires about 75,000 tonnes of natural graphite, equivalent to a 10% increase in flake graphite demand.

By estimates, at least 125 million EVs are expected to be mobile by 2030. That’s more than 8 million tonnes of additional battery-ready graphite needed this decade, considering the mining industry is able to supply 1.1 million tonnes.

According to Benchmark Mineral Intelligence, another UK-based price reporting agency, the flake graphite feedstock required to satisfy the world’s lithium-ion anode market is projected to reach 1.25 million tonnes per annum by 2025. At this rate, demand could easily outstrip supply in a few years.

  1. Concentrated Supply

Almost all graphite processing today takes place in China because of the ready availability of graphite there, weak environmental standards and low costs.

Nearly 60% of the world’s mined graphite also comes from China, making it a dominant player in every stage of the EV battery supply chain. After China, the next leading graphite producers are Mozambique, Brazil, Madagascar, Canada and India — each contributing to 10% or less of the global supply.

Data source: USGS. Image by Visual Capitalist

Given the distribution of supply, many of the major auto markets that have no graphite output are heavily dependent on China’s exports. The US, for example,  imported 42,000 tonnes of the material in 2020, 33% of which came from China.

But considering that all of the spherical graphite processing is controlled by China, every nation is technically 100% reliant on China.

  1. Geopolitical Risks

Of course, this also means that the global graphite market is the most vulnerable to disruptions, as it is essentially held hostage by China.

Given what happened recently with nickel following the economic sanctions against Russia, which supplies 20% of the world’s Class 1 nickel, graphite could easily skyrocket out of control.

As we’ve discussed before, China could use its stranglehold on graphite processing as a cudgel in trade talks with the United States, or it could freeze shipments of them during a war. The possible threat of China cutting off supply presents a ticking time bomb for the EV industry, as the cost of graphite could drive many battery makers out of business.

Moreover, most of the other major natural graphite producers like Mozambique and Brazil have their own risk factors that could derail supply growth.

Richard (Rick) Mills
aheadoftheherd.com
subscribe to my free newsletter

Legal Notice / Disclaimer

Ahead of the Herd newsletter, aheadoftheherd.com, hereafter known as AOTH.

Any AOTH/Richard Mills document is not, and should not be, construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment.

Share

Related posts

EV and lithium battery markets to experience significant growth
January 27, 2023

Renforth taking a closer look at lithium- and rare-earths bearing pegmatites – Richard Mills


Read more
January 26, 2023

Graphite One working with three EV manufacturers and two US Department of Energy labs – Richard Mills


Read more
January 20, 2023

Visualizing China’s Dominance in Battery Manufacturing (2022-2027P)


Read more
January 18, 2023

Half Of All Cars Sold In Top Markets Will Be Electric By 2030


Read more
December 30, 2022

Graphite One Year in Review


Read more
December 24, 2022

The U.S. Senate recently passed the Consolidated Appropriations Act for Fiscal Year (FY) 2023


Read more
November 25, 2022

G1, graphite and anodes: all overlooked pieces of the EV battery supply chain – Richard Mills


Read more
November 23, 2022

GM signs nickel offtake with Vale, showcasing Canada’s resource and supply chain potential – Richard Mills


Read more
November 22, 2022

Tight lead-zinc market keeping a floor under prices – Richard Mills


Read more
November 8, 2022

China’s near-complete dominance of ‘green economy’ metals – Richard Mills


Read more
November 1, 2022

The world needs more graphite, and the US needs Graphite One: Under the Spotlight with G1’s CEO Anthony Huston: Richard Mills


Read more
October 20, 2022

$2.8 billion for US battery supply chain announced – Richard Mills


Read more
October 4, 2022

The case for low-grade sulfide nickel deposits


Read more
September 28, 2022

Renforth samples 0.71% nickel from unexplored part of Surimeau


Read more
September 16, 2022

Renforth Resources: Work resumes at Surimeau, with three new trenches planned for Lalonde target


Read more
August 30, 2022

Graphite One releases prefeasibility study for Graphite Creek Mine and Washington State battery anode materials manufacturing facility


Read more
August 2, 2022

Renforth completes summer prospecting at Surimeau; extends Lalonde strike to 9 km


Read more
July 23, 2022

EV-makers connect with mining companies to ensure adequate supply of battery raw materials


Read more
July 22, 2022

Graphite deficit starting this year, as demand for EV battery anode ingredient exceeds supply


Read more
America's critical metals mine
June 27, 2022

Renforth Resources investing in critical minerals


Read more
June 11, 2022

Renforth Resources: 22 km of battery metals in Quebec


Read more
June 10, 2022

Graphite One releases high-grade, near-surface drill intercepts; prefeasibility study expected in 1.5 months


Read more
June 4, 2022

Graphite One aiming to publish prefeasibility study in Q2


Read more
June 2, 2022

Renforth enhances value of Surimeau battery metals property with extension of Lalonde showing


Read more
May 24, 2022

Lower copper price due to Chinese lockdowns is only temporary


Read more
May 18, 2022

Lithium industry needs to invest $42 billion by end of the decade to meet demand: BMI


Read more
May 17, 2022

Fully-funded Core Assets eyeing next phase of exploration at Blue


Read more
RSS Subscribe
Subscribe to our RSS feed to receive our most recent articles directly to your favourite RSS Reader application.

Article Archives

Article Categories

  • Education (121)
  • Energy (92)
    • Nuclear (15)
    • Oil & Gas (12)
    • Re-newable (44)
  • Environment (322)
    • Clean Energy (56)
    • Climate Change (211)
      • Decarbonization (55)
      • Electrification (129)
    • Pollution (69)
  • Markets (258)
    • Bitcoin (1)
    • Bonds (13)
    • Commodities (117)
    • cryptocurrency (8)
    • Currency (67)
    • Digital Currency (5)
    • Inflation (67)
    • Interest Rates (41)
  • Medical (90)
    • Addiction (8)
    • CBD (4)
    • Health (89)
    • Wellness (26)
  • Metals (674)
    • Battery Metals (193)
    • Critical Metals (117)
    • Energy Metals (44)
    • Industrial Metals (204)
    • Precious Metals (356)
  • Politics (184)
  • Technology (45)
    • 3D Printing (3)
    • 5G (26)
    • Artificial Intelligence (AI) (9)
    • Blockchain (6)
    • Imaging (3)
  • Uncategorized (356)

AOTH Portfolio

  • Articles
  • 文章
  • Company Profiles
  • Company News Releases
  • Media
  • AOTHs-six-for-22
  • Disclaimer

Recent Articles

  • Getchell Gold Corp. Files Technical Report for the Mineral Resource Estimate at Fondaway Canyon, NV February 1, 2023
  • Bank of Canada: “We’re Pausing to Assess Whether We’ve Done Enough,” Hikes by 1/4% to 4.5%, QT Continues February 1, 2023
  • We’re On Thin Ice Into Today’s Fed Decision February 1, 2023
  • 2022 was strongest year for gold demand in over a decade – report February 1, 2023
  • Dolly Varden Silver highlights 46.31 g/t gold and 70 g/t silver over 25m, including 1,145 g/t Au and 826 g/t Ag over 0.48m, at Homestake Ridge – Richard Mills January 31, 2023
  • Peter Schiff: The Federal Reserve Is Nowhere Near Victory January 31, 2023
  • Visualizing U.S. Consumption of Fuel and Materials per Capita January 30, 2023
  • Peru’s violent protests imperil 30% of its copper output January 30, 2023

Ahead of the Herd

Enjoy hundreds of top-notch, thoroughly-researched articles on commodities and the junior resource companies that search for deposits of them.

Newsletter Subscribe

Subscribe to our free newsletter so we can start telling you things everyone else doesn't already know!

Recent Articles

  • Getchell Gold Corp. Files Technical Report for the Mineral Resource Estimate at Fondaway Canyon, NV
  • Bank of Canada: “We’re Pausing to Assess Whether We’ve Done Enough,” Hikes by 1/4% to 4.5%, QT Continues
  • We’re On Thin Ice Into Today’s Fed Decision

Explore

  • Articles
  • 文章
  • Company Profiles
  • Company News Releases
  • Media
  • AOTHs-six-for-22
  • Disclaimer
© 2020 Ahead of the Herd. All Rights Reserved