https://investornews.com/critical-minerals-rare-earths/an-update-on-the-graphite-sector-and-what-to-expect-in-2024-and-beyond/The long-term outlook for graphite
Looking out further graphite demand is set to surge this decade and next due to the expected massive rise in global EV sales and energy stationary storage (“ESS”) battery demand. Below are 3 demand forecasts that give a guide as to what may happen over the long term.
Benchmark Mineral Intelligence forecasts we will need 97 new 56,000tpa natural flake graphite mines from 2022 to 2035 to meet surging demand.The IEA forecasts flake graphite demand to rise 8-25x from 2020 to 2040.Trend Investing forecasts flake graphite demand to rise 17x from 2020 to 2037.
Trend Investing forecasts flake graphite demand to increase 17x from 2020 to 2037. The IEA forecasts a 8-25x increase from 2020 to 2040
Source: Trend Investing and the International Energy Agency (“IEA”)Closing remarks
While 2023 has been a very tough year for the graphite sector the future looks much brighter, especially beyond 2025 when possible deficits are forecast to increase each year. For now, the flake graphite miners that are low-cost producers and who can develop integrated ‘flake to spherical graphite’ production stand to perform best. Several western graphite companies are rapidly advancing in this direction and are worth following closely.
Those graphite miners that can qualify their product to meet the IRA and/or the CRMA should also be at an advantage, especially with the U.S. Foreign Entity of Concern (“FEOC”) rules for critical materials commencing in 2025.
We will keep you updated on the graphite sector and miners in 2024.
