EU Graphite Demand

I posted recently about a China graphite demand surge (https://hotcopper.com.au/posts/37938450/single) but there is probably an equal graphite demand surge coming out of Europe. I refer to a recent item by Benchmark Minerals 25^th March 2019 where VW’s EV intentions can only be described as considerable. I like the Benchmark views as they are quite independent and have very much a world view of what is happening with all of the minerals and metals involved in the EV and battery storage space. VW of course spurred on considerably into EV’s because of their disastrous misrepresentation of their diesel particulate exhaust emissions, but there is more than VW in Europe with Benz and BMW also riding the wave into EV production all rather sooner than later. And we should also not forget what the US might require with Ford GM and Tesla. We can thus see in the attached article that VW will spend €30 billion by 2023 – that is within the next 4 years as part of their electrification program. It is happening quickly. And a key component to these batteries is of course graphite. I can only interpret this as Syrah being in the hot seat to provide much if not most of this huge graphite demand – who else will be ready in the time frame and who else so far has the funding to proceed? And if this is the case both the Moz Balama initial processing facility at its current size will probably be inadequate and the US Vidalia SG plant at an initial 10kts will require multiple modules of 10kt over very short time frames. Unfortunately Capex is likely to be extensive over the next few years thus a dividend flow probably unlikely for a while.

See the Benchmark Minerals article here.

Ps Not sure why a shareholder should have to bring this sort of detail to notice –Syrah have a highly paid Investor Relations officer who could brighten up shareholders with such news and bring confidence to suffering long term shareholders. If only. Just where did I put that vision thing said the Chairman. I just hope it is us who get to enjoy the fruits of this demand.

Cheers

redgum