Western supply of graphite will be constrained in the coming decade by the “opaque” market for the key battery material, the world’s largest natural graphite producer outside of China has warned.
Shaun Verner, chief executive of Syrah Resources in Australia, a Tesla supplier that operates a huge mine in Mozambique, said the graphite market’s lack of transparency on pricing made bankers reluctant to fund new projects.
“The biggest obstacle to new investment is the opacity of the market because it’s really difficult to meet the commercial debt,” he added.
A battery’s anode, made of graphite and increasingly an additive of silicon, is more dependent on China than other materials because the country mines 65 percent of graphite, processes 85 percent and is home to the world’s six largest producers of anode material, according to the International Energy Agency . China dominates the refining of other battery materials like lithium, nickel and cobalt, but the raw materials that feed these refineries are mined around the world.
The centralized nature of the graphite market means that supply arrangements are made bilaterally through long-term agreements between producers and consumers. This leaves small volumes traded on exchanges, providing limited price transparency.
https://ukdaily.news/bake-offs-liam-charles-reveals-the-toughest-part-of-the-competition-on-the-show-208999.html
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