Refer post -
Post #:51768438I suspect what is been said is that the market for good quality graphite concentrate (upstream production from the mine to concentrate) is deficient, and supply is needed.
However, in terms of PSG (spherical graphite produced from graphite concentrate) currently as China is either ramping up the environmentally unfriendly synthetic graphite process (or using a greater proportion of synthetic graphite in the process) that the downstream commodity PSG is not needed yet. My view is it will be needed because of the environmental issues of producing synthetic graphite to meet EV growth. In any event my post of today talked about producing concentrate first (upstream) and then moving into PSG (downstream) because that market will grow. At the moment the 50/50 share in batteries (synthetic/spherical graphite many assume) is not happening downstream because PSG is not been produced in sufficient quantities and that is why I keep saying the PSG market is there, but RNU needs to get its act together and stop trying to get the optimal process with constant delays. It costs far more to produce synthetic graphite than PSG - refer post
Post #:51768438 In terms of graphite demand, I have been assuming a 50/50 share downstream btw in demand forecasts - refer
Post #:65496507China's graphite quality is not there but they can produce graphite despite its poor quality, and if that graphite is put into EVs I suspect it has come at a large cost to it as well - probably an unsustainable production cost or environmental cost. The game of poker when playing with China is one of don't blink. I just wonder whether RNU knows how to play poker and call the bluff. On China's graphite resources -
Post #:51384197My personal view, if you want to poker with China, is to start effectively negotiating with Europe, Japan and Korea and then see how China react. China is not the only country wanting to produce anode material for batteries (and the places I mentioned also want to produce EVs end to end and not relying on China for inputs in due course). RNU has the resource, it is whether management are up to the task of ensuring it maximises that benefit for SHs and know how to play poker well.
If this mob can get a deal with Tesla, been Magnis with a resource in Tazania, anything is possible for RNU.
If others have a view please share.
All IMO
(20min delay)