Ann: Full operations of Balama solar and battery hybrid system, page-16

Lot of talk about synthetic graphite. Just one view below, useful to add to understanding all the same.
Apologies if reproduced before.

"Natural graphite is set to be the fastest-growing graphite subset through 2030 "

"Synthetic graphite is a unique material often used in metal fabrication and devices like batteries and solar panels.

The material is composed of high-purity carbon and is known for its ability to withstand high temperatures and corrosion. Those points make it a great option for highly specialized industries that need predictable results from their carbon materials.

Understanding the difference between synthetic and natural graphite is important for investors, as industries typically need a specific type of graphite for their applications. Here’s a look at the synthetic graphite market and what it has to offer.

Is synthetic graphite better than natural graphite?

Synthetic graphite may be intriguing for investors because of its presence in lucrative industries with rising demand. However, before diving into the space it’s important to understand the nuances and misconceptions surrounding synthetic graphite.

One key point is that synthetic and natural graphite have their own applications and generally do not have a relationship in the broader marketplace — except of course that they are both called graphite.

Synthetic graphite is purer in terms of carbon content and tends to behave more predictably, which is why it has found a niche in solar energy storage and electric arc furnaces. Synthetic graphite can be significantly more expensive to produce than natural graphite, as the process is fairly energy intensive. In fact, the cost can be double or triple the standard price for natural graphite.

Restrictively high prices and specific use cases for synthetic graphite mean that it doesn’t often compete with natural graphite.

What are the types and uses of synthetic graphite?

Synthetic graphite typically comes in two forms: electrodes and graphite blocks. The form of synthetic graphite directly determines which industries it will be used in. Here's a look at a few of them:

• Electrodes — Electrodes are primarily created using petroleum coke as a precursor and are almost exclusively used in electric-arc furnaces — these furnaces are used for melting steel and iron, and producing ferroalloys.

• Graphite blocks — Graphite blocks — or isotropic graphite — are primarily used for energy storage in the solar industry. These blocks are made using the same petroleum coke process as electrodes, but differ slightly in the structure of the coke used.

• Secondary synthetic graphite — Producing synthetic graphite also creates a by-product known as secondary synthetic graphite that is typically yielded as a powder. It’s considered a low-cost graphite material and some forms of it can compete with natural graphite in applications like brake linings and lubricants.

• Primary synthetic graphite — Primary synthetic graphite is not a by-product like its secondary counterpart. It is typically manufactured in powder form and used for high-end lithium-ion batteries. However, it is more expensive to produce and can cost the same amount as manufacturing an electrode.

How big is the synthetic graphite market?

The outlook for the overall graphite market is positive, and is tied to the battery industry and energy storage applications.

In terms of graphite demand, Benchmark Mineral Intelligence expects to see double-digit growth from the battery sector moving forward. Andrew Miller, product director at Benchmark Mineral Intelligence, has said that the firm attributes this expected growth to strong fundamentals in the long-term battery market trajectory.

“We're now projecting that by the end of next year, batteries will be the number one leading market for graphite,” Miller said during a keynote presentation at Benchmark Week in November 2022. “So this is a turning point for the industry.”

Overall graphite demand currently stands at 700,000 to 800,000 metric tons (MT) annually, with the lithium-ion battery sector accounting for 200,000 MT. By 2030, total demand is expected to rise substantially to 4 million MT a year, with the lithium-ion battery market eating up nearly 3 million MT of that amount.

As a whole, it appears the future is bright for graphite. However, synthetic graphite will still face somewhat of an uphill battle. Natural graphite is set to be the fastest-growing graphite subset through 2030 — and improvements in purity are helping natural graphite enter the nuclear technology and high-end battery markets, which have typically been owned by synthetic graphite.

Price will certainly continue to be a determining factor in the competition between natural and synthetic graphite. That said, Fastmarkets analysts are expecting both natural and synthetic graphite to be used widely over time, and they anticipate an increasingly dynamic graphite market in 2023. "