Graphite
Over in the graphite space, the United States and European Union have both declared the metal a critical mineral.
China dominates the world’s graphite supply – accounting for 80%, with the US, EU, Japan and South Korea utterly dependent on mineral imports.
What many aren’t aware of is the fact that up to 40 times more graphite than lithium is used in the lithium-ion battery.
The commodity is also consumed in the steel sector, and as this industry begins to recover, it is anticipated graphite supply will tighten and prices will climb.
Similar to lithium, graphite pricing is largely opaque and based on direct negotiations between parties. However, as a guideline, large flake graphite with +80 mesh and higher than 94% carbon usually commands the highest prices.
Northern Graphite produced a rough price guide that puts extra-large flake graphite at US$1,750 per tonne (+50 mesh), large flake at US$1,150/t (+80 mesh), medium flake US$950/t (+100 to -80 mesh) and small graphite is around US$700/t (-100 mesh).
As the lithium-ion battery market continues rocketing, graphite demand is predicted to pick up, with the market accounting for about 25% of all graphite consumption. Northern Graphite anticipates this will increase with the burgeoning electric vehicle market and emerging grid storage solutions such as the South Australia’s recently commissioned battery.
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