I re-read this announcement yesterday afternoon & I would just like to highlight some inaccuracies that are contained within it (imo):-
1."China is now a net importer of graphite"
From what I understand this is NOT the case - yet! But it MAY be one day, as China closes some of it uneconomic mines whilst it consolidates. But they are NOT at this point in time a net importer!
That Syrah 'Offtake Agreement' for 80,000-100,000 tpa of graphite with Chalieco hasn't been signed yet.
China has temporarily halted production in Pingdu (Shandong) but still controls more than 70% of the world's graphite production.
Whilst doing some DD, Tweets & Co. spoke to a few very large Asian purchasing managers who tell us that they still acquire graphite exported from China.
2."Tesla is building their advanced battery giga factory in the US to better supply exponential growth in hybrid electric vehicle sales. They are aiming to more than double total world existing production of advanced battery power alone. This is using natural flake graphite."
a) This above statement is incorrect! Tesla is PLANNING to build an advanced battery factory, but they are yet to get commitment from battery joint venture partners. Just to clarify.
b) Tesla's sustainability claims (& various statements, including from their CTO - JB Straubel) that the graphite they intend to use is synthetic made in America, graphite. Not a natural flake/mined graphite.
Tweets & Co. was also speaking with a Company called Japan Power Plus recently. Directors of this Company actually invented the current lithium-ion batteries that Tesla & Toyota etc use.
JPP claim (& have confirmed in our conversations with them) that they have developed a new battery whose carbon elements contain NO graphite. This new battery technology will have enormous benefits over the lithium-ion batteries (eg; cost, weight, sustainability, charging times, amount of charge stored etc), which they believe will replace the lithium-ion battery ... & they are now working on licensing this technology into all areas where lithium-ion is currently used.
And for those that wish do a little research in this regard, then please be my guest - here is their website - & their office in the US is only a phone call away.
Just keeping it real & accurate is all!
MNS Price at posting:
16.5¢ Sentiment: None Disclosure: Held
(20min delay)
