About Graphite

Overview

  • Critical supply industrial metal
  • One of two natural carbon polymers (diamonds)
  • Light weight with highest natural strength and stiffness of any material
  • Conductor of heat/electricity
  • Corrosion and heat resistant
  • High natural lubricity
  • Steel and automotive Industries largest users of graphite with demand growing 5-7% annually
  • Automotive industry uses:
    • Brake linings, gaskets, clutch materials
  • Steel industry uses:
    • liner for ladles, crucibles, component in bricks which line furnaces and to increase carbon content of steel
  • Used in portable consumer devices
    • laptops, cell phones, MP3 players, digital cameras, power tools
  • Lithium Ion Batteries
  • Pencils, lubricants, fire retardants and reinforcements in plastics
  • Industrial demand growing 5% per annum over last 10 years due to industrialization of emerging economies such as China and India
Graphite Demand Distribution
Graphite Demand Distribution
Graphite Price Chart (Price Range of +80 mesh, 94-97% graphite (US$/tonne) )
Graphite Price Chart (Price Range of +80 mesh, 94-97% graphite (US$/tonne) )
Forecasted Global Graphite Demand
Forecasted Global Graphite Demand (source: Industrial Minerals)

Supply/Demand Dynamics

  • European Union and USA named graphite a mineral in critical supply
  • Lack of exploration and development over last 20 years and China producing 70% of the world's graphite, has made Li-ion battery manufacturers "very concerned" about securing long-term, stable sources of supply
  • China discouraging export with 20% tax , 17% VAT and export licensing system
  • Chinese production and exports expected to decline due to China's strategy to keep value added manufacturing in the country
  • Graphite market is more than 50 times larger than lithium and rare earths markets
  • Demand for graphite increasing globally for green technology applications which have potential to consumer more graphite than all current uses combined

Green Technology Uses

  • Fuel cells (buses, boats, trains, planes, forklifts, vending machines, vacuum cleaners and highway road signs)
  • Hybrid/Electric Vehicles (US Government offering tax incentives, loans and grants to stimulate electric and hybrid vehicle industry with target of 1 million vehicles on the road by 2015)
  • Lithium ion batteries (laptops, cell phones, MP3 players, digital cameras, power tools)
  • Wastewater treatment plants
  • Emergency power to facilities
  • Solar energy
  • Semi conductors
  • Nuclear energy

About Amorphous Graphite

  • Global Graphite Production was 1.2 million tons in 2011, approx 55% of which is amorphous graphite
  • The United States, Europe and china have included graphite among the short list of critcal metals
  • The United States produces no graphite and is 100% dependent on imports to meet it's industrial and technology needs
  • China produces 70%-80% of the world'snatural graphite. China prodcued over 90% of the world's amorphous graphite in 2012
  • Continuing government-backed consolidation programs in the Human Province is seeing over 230 mines reduced to 20
  • The consolidation of China's amorphous graphite industry is set to impact the supply/demand balance for 2012 and 2013 and will result in a loss of global supply
  • Amorphous graphite sells for $500-800/ton depending on the carbon content which ranges from 65% to 85%
  • Amorphous graphite production is dominated by China, with approx 16k tpa from Austria, 12k tpa from Mexico and 300 tpa from Turkey
  • Amorphous graphite is mainly used as a component in lubricants, refractories, steel production, brake linings, clutch materials, gaskets and water-based paints

*Source: Industrial Minerals