Graphite has been designated a strategic critical mineral by USA, EU and Japan
Evolution of demand
Exponential growth in Li-ion battery industry (see below)
EV Market forecast to drive growth in natural graphite demand
Increasing demand for fire protection materials and graphite foil in electronics
Refractory use in steel production
GWh/year
Source: BloombergNEF
Evolution of supply – supply shortage & diversification
~70% historically supplied by China (fine flake)
Chinese Government restrictions on the export of flake graphite and spherical graphite
Most existing Chinese-dominated graphite supply chains are unsustainable (environmental pollution)
Global diversification of supply chains away from China
ESG increasingly important to graphite customers
Highlights the need for ex-China flake graphite supply and anode production capacity
Supply-demand balance and market balance
Source: Fastmarkets
Unprecedented Battery Market Opportunity
Transition to a global green economy is already underway
Transition to a global green economy is already underway
Source: Benchmark Mineral Intelligence, Dec 2020
Graphite forecast to dominate battery mineral demand to 2050
Source: World Bank Group, May 2020
Graphite – Key to a Green Future
Graphite underpins countless applications for renewable energies and cleantech
Historic natural graphite demand by application (‘000 tonnes)
Source: Fastmarkets F&C: Foundaries & castings
2050 projected annual demand from energy technologies as % of 2018 production forecast to dominate battery mineral demand to 2050
Source: US Geological Survey & World Bank – Minerals for climate action: The Mineral Intensity of the Clean Energy Transition, accessed 25 June 2020
Beyond EVs
“As the world transfers from hydrocarbons to renewables, significant battery metals demand is required to capture power from solar, wind, geothermal & hydro to power homes and commercial sites. Only 28% of the world’s energy is consumed by transport.”
Source: US Energy Information Administration
In December 2020, the European Commission announced the EU taxonomy for sustainable activities which included a number of new measures and initiatives driving a shift in supply chain standards and disclosure.
Key Initiatives:
Responsible sourcing
New mandatory procedures to ensure sustainable and ethical sourcing of raw materials such as graphite.
CO2 footprint
All batteries sold in Europe must declare their carbon footprint. Batteries with the highest carbon footprint will be banned in Europe.
Traceability
All raw material used in batteries to be produced according to OECD recognized guidelines for sustainable sourcing. Thanks to blockchain technology, each battery will have a digital passport tracking all components upstream
Supported by:
International Raw Materials Association
EU list of Critical Raw Materials & European Raw Materials Alliance
EIB new energy lending policy supporting projects relating to the supply of critical raw materials
