Graphite
Industry Overview
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)
- Increasing demand for fire protection materials and graphite foil in electronics
- Refractory use in steel production:
- Near-term – COVID infrastructure stimulus
- Long-term – Infrastructure needs from the urbanisation of Asia & Africa
GWh/year

Source: BloombergNEF
Evolution of supply – supply shortage & diversification
- Potential graphite supply shortage by 2023 (see below)
- ~70% historically supplied by China (fine flake)
- 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
- Chilalo can produce +99% without chemical intervention – green solution
Surplus/Deficit Estimate

Source: Benchmark Mineral Intelligence at Q1 2020
EV Market forecast to drive +700% growth in natural graphite demand by 2025
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
Graphite is the dominant material across all commercial battery technologies

Source: Pallinghurst-Traxys battery analysis. %s represent the proportions of cathode and anode in each battery respectively/ NCA batteries contain 2% aluminium (not shown)
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 EV’s
“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
Regulation
Driving Demand
EU initiatives leading the way & forcing a change
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

European Battery Alliance