About Graphite
GRAPHITE QUICK FACTS
Graphite, along with diamonds and Coal, are crystalline forms of Carbon:
Properties
Graphite is an essential but often unrecognized material for modern life, with broad industrial applications due to its unique properties:
Properties of both metals and non-metals (ideal for industrial applications)
Highest natural strength and stiffness of any material
Lightest weight of all reinforcement materials
Very high melting point; low thermal expansion/shrinkage
High electrical and thermal conductivity
Low frictional resistance and hydrophobic behaviour (excellent lubricant)
Non-toxic, chemically inert and high resistance to corrosion
Properties vary depending on the purity and size of the graphite crystals; this directly affects the price of the resource.
GRAPHITE GLOBAL PRODUCTION
Graphite is not a homogenous commodity; it occurs naturally in 3 forms:
FLAKE
Highest Price, Lowest Supply
High Purity: 85%-99% Cg
AMORPHOUS
Least graphitic of the three
Lower Purity: 60%-90% Cg
VEIN/LUMP
Uncommon & highly localized;
<1% of world production;
Marginal applications
40% of global production
60% of global production
Flake graphite
- Widest range of end uses
- Increasing demand for high purity flake graphite
- No substitute
Flake graphite used in batteries – not amorphous
* Source: Comark Securities
RESTRICTED AND UNSTABLE SUPPLY = OPPORTUNITY
China (+70% of world production) is losing dominance over graphite market due to export tariffs and environmental regulations that reduce supply and increase prices
China also faced with a reduction of large and medium flake production
Flake graphite production outside of China:
- Brazil
- Canada
- Mozambique
- India
- Madagascar
- Ukraine
- Norway
- Zimbabwe
- Germany
Graphite Global Consumption
- Urbanization in China and India is increasing the demand for graphite for traditional applications
- Natural graphite is on the European Union’s Critical Raw Materials list and on the Critical Minerals list of the United States Department of the Interior
- The market is expected to double every 10 years according to Benchmark Minerals.
HOW Graphite IS BEING SOLD
Graphite is not an openly traded mineral
Prices are negotiated between end users and producers for annual and, sometimes, multi-year contracts
Prices for graphite vary according to different parameters such as carbon content (purity), size, impurities and shape
Continuous contact with customers is necessary
There is a market for 100% of mined graphite material (from large to fine flakes)
Market Study is underway to identify all end users in all market segments
Graphite mine
Inventory of different sizes for different uses and users
