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Green Battery Minerals (GEM.V) reports on China’s recent announcement of stricter graphite export rules. This could potentially disrupt the supply of anode-grade graphite for lithium-ion batteries (LIBs), crucial for electric vehicles (EVs).
Graphite Demand in EVs
LIBs power most EVs. With increasing government regulations and consumer pressure, EV demand is set to skyrocket. By 2030, over 30 million EVs are expected to be sold annually, rising to 45 million by 2045. Graphite, not lithium, is the largest constituent of these batteries by weight. Each new EV requires approximately 160 lbs of graphite.
Projected Graphite Shortage
If all EVs were to use graphite-based anodes in 2030, around 4.8 million tonnes of anode-quality graphite would be needed. This figure rises to 7.2 million tonnes by 2045. With global graphite production in 2022 at ~1.3 million tonnes, new mines are essential to meet demand. Benchmark Source, a supply chain consultancy, projects that 97 new graphite mines are needed.
China’s Role in Global Graphite Production
China currently accounts for 61% of global graphite mining production and dominates the processing of anode-quality graphite with a 90% market share. China’s potential clampdown on graphite exports could compromise the LIB supply chain.
Green Battery Minerals’ Position
Green Battery Minerals, a Canadian company, is focused on developing its Berkwood graphite property in Quebec, one of the best prospects globally for anode-quality graphite production. The company is working with Volt Carbon on upscaling Volt’s proprietary dry separation technology, which promises a significant reduction in operating costs and strengthens GEM’s competitive position.
Innovation and Green Credentials
GEM and its UK technology partner are developing prototype batteries based on graphene, a derivative of graphite. The company’s green credentials, including its project’s road accessibility and less waste rock production, further strengthen its position.
The EV revolution is expected to cause significant shortfalls in the supply of critical minerals like graphite. Green Battery Minerals is well-positioned to capitalize on this opportunity through the development of its Berkwood property and its potential for significant competitive differentiation.
Company Website: https://www.greenbatteryminerals.com
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