Lot's of misinformation being spread on this thread.
Globally, graphite mined in terms of tons is about the same as nickel. And like nickel, most of it is used in steel production. Currently batteries represent 8% of global demand for graphite.
Graphite demand for batteries, in particular coarse flake graphite, does have potential to explode (just like the batteries themselves). It seems some readers are aware that at least 70% of the coarse flake graphite used to make spherical graphite used as anodes in Li batteries is sent to waste. Electric vehicles have a huge future and IMO, will eventually displace those directly fueled by hydrocarbons.
My concerns with the graphite bubble are that the race is on to increase battery performance and decrease weight. That may mean that graphite has only an interim life as the preferred anode. The other concern is that first mover status is critical, as the best orebodies are big. TON might be slow off the mark but it does have nearology advantage. The projected opex at Syrah next door is $500 per ton, and capex is very low. So Syrah should be fine all the way to mine. They should also be ready to produce at the right time to take advantage of projected peak growth rates in coarse flake demand. That is regardless if future technologies eventually surplant graphite as an anode, which is probably at least 7 years out before any commercial realisation is possible.
GLTA
TON Price at posting:
32.5¢ Sentiment: None Disclosure: Not Held
