TLG - Media, page-42

Morning Pabs

Yes, you, me and a few others get it...that’s why we’re in so big.

So for the benefit of the others let’s unpack the numbers around future EV demand.

Currently, around 100 million new vehicles hit the road every year and this year a bit over 10 million of them will be electric, by the end of the decade that figure is forecast to reach 40%, by 2040 70% and 100% by 2050.

These numbers come from the IEA and McKinsey and you can find the references to them in one of my posts about two months back.

The figures really do no more than reflect what governments are doing to force the transition from petrol and diesel to batteries and key here is that the big car producing countries such as the EU, the US, Japan
and many other have banned the production of petrol and diesel cars from 2040.

So if you’ve got a virtually unlimited world class graphite resource capable of delivering the cheapest, cleanest and greenest anodes it’s not hard to understand why you wouldn’t plan to produce them as Mark said, for decades to come.

On top of the market for EV batteries the transition to renewables also means there’s also a very large emerging market for big stationary batteries to stabilise electricity grids plus storage batteries for domestic rooftop solar plus other applications including for small water craft, ships and light aircraft.

So, seen in this context, the idea of producing hundreds of millions of anodes in the decades ahead isn’t so crazy after all.