Triage - the reality is that, we and every graphite battery materials wannabe, are at the mercy of multinationals’ decisions.
As we wait for them to position themselves, it seems to me that RNU is still on track to be in construction by the end of the year – so, for every week that passes with no material news, the likelihood we’ll get an announcement intensifies.
The larger picture is that a new economic cycle has begun for global trade. This is something that has not been seen for thirty years or so. Therefore, tracking the movements of multinationals is a big clue as to what may be about to occur. For instance, what is Hanwa trying to achieve by creating a new company in Australia? My guess is that they will create a large warehouse facility for the storage of raw material supply because the ‘just-in-time’ economy is dead and that is what the new world supply chain requires – security of raw materials in safe jurisdictions and a large buffer to go with it. Another clue is that Hanwa is by definition a trading company. They specialise in buying a range of products, maintain a stock or a shop, and deliver products to customers. Therefore, it's entirely possible that they could be planning to buy our graphite concentrates to sell on the open market. This could provide them and us with early cash flow as graphite prices increase as predicted.
Whatever the plan, something’s afoot. The Hanwa/Honda procurement strategy is big. Them setting up in Australia for the foreseeable future is big. Japan securing a trade deal with the US is also big because it means that they can invest with confidence.
In Australia there is no one else. We are the only mine-approved advanced project (plus PSG project) capable of meeting demand. So, if as you suggest we have 'run aground' then I'd suggest every graphite wannabe should halt their exploration programs now because if we can't make it then what hope do they have?
