3-images-1Graphite Facts

 

“The United States has no domestic production of natural graphite, but it is consumed by roughly 90 U.S. companies. Major producers of natural graphite include China (70%), North Korea (10%), and Brazil (8%). Top-quality flake graphite will likely see an increase in demand in the coming years; meanwhile the supply looks to be steady at best, and there are concerns about potential export controls out of China.”

The United States Department of Defense
Strategic and Critical Materials 2015 Report on Stockpile Requirements
January 2015

 

Graphite is a critical strategic mineral (the USA has declared graphite a supply critical mineral; the European Union declared graphite a critical raw material)

The United States currently imports 100% of all graphite consumed

Although there are ~200 graphite applications, the one with the most significant and enduring future demand is lithium-ion batteries (graphite is used to manufacture the anode in a lithium-ion battery)

Each electric car contains more than 100 pounds of coated spherical (CSPG) graphite

It takes 10 to 30 times more graphite than lithium to make a lithium-ion battery — the minimum graphite purity required is 99.95% Cg

Future graphite demand is driven primarily by the expanding lithium-ion battery markets (transportation and stationary battery markets)

Graphite’s unique properties make it the ideal anode material for lithium-ion batteries; however, clients require CSPG graphite — not traditional run-of-mine graphite

China, who controls ~75% of global graphite production, has imposed a policy of resource nationalization, including export duties, licenses and environmental restrictions on new and existing mines

One cannot have a ‘green’ car with a ‘dirty’ battery. Graphite production is the cause of significant pollution in China, due to poor mining practices and low environmental standards. Battery manufacturers are being held accountable by consumers to source graphite from environmentally responsible and sustainable producers

Global consumption of natural graphite doubled from 2000 to 2010

Tesla Motors’ Gigafactory alone — currently under construction in Nevada and slated for commissioning in 2017 — will more than double the current global lithium-ion battery demand