General Discussions, page-25803

https://www.mining.com/key-question-which-critical-mineral-will-china-ban-next/

Yet there’s perhaps another commodity offering even more upside if trade wars ramp up between the world’s two largest economies.

The refined battery anode material known as Purified Spherical Graphite (PSG).

According to a report released by Climate Energy Finance, China supplies a staggering 100% of the global PSG market.

That’s incredible concentrated risk for Li-ion battery makers and the global green energy movement more broadly.

But it offers enormous opportunities for company’s looking to provide alternative supply…

Enter… Renascor Resources (ASX: RNU)

This South Australian graphite miner is positioned to become the world’s first PSG supplier outside China as it pushes ahead with downstream construction.

This is a KEY point that differentiates RNU from most emerging graphite developers.

To say this company is setting up for first mover advantage is an understatement!

An added benefit… The company’s flagship Siviour resource is the world’s second largest graphite deposit… the largest outside Africa.

Thanks to its high grade mineralisation and shallow deposit (that trends from surface) the company is able to position itself as one of the world’s lowest cost PSG suppliers.

However, as with any critical metal developer looking to build midstream or downstream capacity, cost of finance remains a steep barrier in the current high interest rate environment.

Critical metal processing facilities sit at the edge of technological innovation in the mining industry.

That’s why installation is capital intensive and requires specialised staff to construct and operate.

Yet battery makers are in a precarious position in a global environment threatened by trade bans.

No doubt, they’ll be keen to see alternatives hit the market… Their business literally hangs in the balance.

Its these and other institutional investors that will need to step up if they’re looking to guarantee supply in the years ahead.

That should give Renascor the edge.

Any further pressure from China, and the impetus to push alternative options for this tightly held commodity will grow stronger.

So, the key question remains… Which critical mineral will China ban next?

Rare Earths, PSG or some other commodity we haven’t focussed on here today?

James Cooper is a geologist and mining analyst who runs the publication Diggers and Drillers. You can also follow him on Twitter @JCooperGeo.

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