Scaling up graphite anode is critical for USGraphite anode...

Scaling up graphite anode is critical for US

Graphite anode demand could increase by seven times in the nextdecade, as the surge in electric car sales and the emergence of energystorage continues to drive the construction of lithium-ionbattery megafactories.

Currently, there are 70 lithium-ion megafactories being built with plannedlithium-ion battery capacity in the pipeline of approximately 1,549Gwh,according to Benchmark Mineral Intelligence.

While lithium, cobaltand nickelare key to cathodes in batteries, graphite is essential for anode production.According to the London-based firm, graphite anode demand is set to increasefrom 194,160 tonnes in 2017 to 1,080,360 tonnes by 2023 and 1,747,800 tonnes by2

“The UShas zero graphite mining or processing capacity geared towards thelithium-ion battery industry,” Benchmark Mineral Intelligence ManagingDirector SimonMoores told the US Senate at a hearing on Tuesday (February 5).

“The US does not have anyactive USflake graphite mines nor does it have any capacity to produce anodematerial from this feedstock,” he added.

The most strategic US asset in the anode supply chain is German-ownedsynthetic-producer, SGL Carbon (ETR:SGL), which has a number of production sites and knowledgebases in Ohio, Pennsylvania, North Carolina and Washington state.

For any investor following the sector it comes as no surprise that China isleading the way in the expanding electric vehicle industry. The countrydominates both the mining and refining side of the flake graphite to anodesupply chain.

“The [Asian] country’s leading producers of anode material are leading China’s spherical graphite expansions to a cumulative420,000 to 450,000 tonnes per year by 2020,” Moores said.

But what is driving this move from top companies such as BTR New Energy,Shanshan Technology, and LuiMao Graphite?

“This four-fold increase is a direct response to China’ssoaring domestic EV demand,” Mooresexplained to the US Senate.

Chinaexpects sales of 7 million new energy vehicles in the country by 2025,representing about 20 percent of the overall autos market there.

“Considering China’sposition across the entire graphite to EV value chain, secure supplyof anode material is as biga risk as cobalt for US to consider,” Mooressaid.

This might be benefical with our BAM project in Louisana and not forgetting  the sales agreement between Syr and BTR New Energy