There is hope for TON with regards to their Graphite if China does not want it...... But I guess the Chinese stakeholder may never allow the stock to go to Europe or USA.? Good article and yes Graphite once extracted out of the dirt will be a valuable product for their end-users ...this is why I suspect the Chinese want it - they will make a valued added product and makes billions out of the once stock held by TON shareholders & Directors etc......if they take over ....
Article - attached for those that have not yet read yet... https://resourceworld.com/graphite-demand-to-skyrocket-with-increased-consumption-from-auto-in
Graphite demand to skyrocket with increased consumption Once an almost obscure commodity, demand for natural graphite – the single largest component in lithium-ion batteries – is feeling the impact of the rapidly accelerating expansion of the electric vehicle and renewable energy sectors.Nonetheless, broader demand still remains heavily aligned with the steel industry where graphite is used in heat resistant fire brick in blast furnaces, as a liner for ladles and crucibles, and as an agent to increase the carbon content of steel.Graphite is one of only two naturally occurring forms of pure carbon, the other being diamonds which are a three dimensional crystal structure of carbon atoms whereas graphite is a “two dimensional” or flake structure.
However, both are strong, durable and resistant to heat and corrosion.Both occur naturally and are produced in the earth via geothermal processes. They are normally solids, highly stable, and can be made artificially.Over the near term, the major factors driving the growth in the graphite market are burgeoning demand from the lithium-ion (Li-ion) battery industry and the rise in steel production in Asia and the Middle East.The World Bank forecasts that low-carbon energy technologies, primarily lithium-ion batteries, will require 4.5 million tonnes of graphite per year by 2050, a 500% increase over 2018 levels and a 318% increase over the total graphite produced in 2019. Alongside demand from energy storage applications, the battery industry is expected to become the largest sector of demand for the graphite supply chain.China is the largest player globally in terms of consumption and production capacity for graphite. Of note, electrodes are made of synthetic graphite.
Demand for lithium-ion batteries in China is expected to grow rapidly owing to manufacturing growth in the electric vehicle sector and for on-grid and off-grid energy storage applications.As one might expect, the primary driver for graphite demand today has been economic growth within China in addition to emerging economies including India. Prices rose from about US$700/tonne for large flake graphite to almost US$3,000/tonne in 2012, highlighting global dependence on China which accounts for 70-80% of world production
Graphite prices, which are a function of two factors, flake size and purity, pulled back following the COVID-19-based economic slowdown but appear set to rise again following the global economic recovery.
New applications such as lithium-ion batteries, fuel cells, and nuclear power have the potential to create significant incremental demand growth for graphite in the future. For example, it takes 20 to 30 times more graphite than lithium to make lithium-ion batteries; and demand is growing rapidly in consumer electronics, power tools, and electric vehicles. Growth will continue to rise with the increased use of hybrid and fully electric vehicles. In fact, each hybrid electric car uses about 22 pounds of graphite, while a fully electric auto uses about 110 pounds.
Market confidence has been boosted this year by continued demand recovery for graphite which has served to increase prices and reduce market uncertainty. The re-establishment of supply chains and a large number of government stimulus packages has also fueled market demand for EVs and higher price expectations.
Demand recovery has been underpinned by growth in the Chinese EV/battery sector but also by higher-than-expected crude steel production and refractory demand since the second half of last year. Many mine developers have started to progress projects downstream, with a particular focus on battery grades to take advantage of rising demand. In the meantime, prices for graphite and other refractory raw materials have risen as a result of Chinese environmental closures and logistical disruptions post-COVID-19, according to Roskill, a materials supply intelligence service consultancy.The consultancy says that while flake prices showed initial signs of stabilizing in early March, suggesting an easing of some of the supply and logistical disruptions, market tightness may remain due to lags in supply ramp-up. Any battery-grade producers still off-line are now rushing to bring back production to meet the rapid demand increases predicted for 2021.
Demand for graphite has also been growing at over 20% per year due to the proliferation of cell phones, cameras, lap tops, power tools and other hand-held devices. Graphite is the anode material in the battery and there are no substitutes at the present time. More recently, the growth in hybrid and all electric vehicles and grid storage have contributed to continued strong demand growth.
Lithium-ion battery demand already consumes 25% of graphite production from very little a few years ago and this market segment is still in its infancy. It is estimated that new manufacturing capacity will require annual flake graphite production to double over the next three years. Good luck Ton shareholders...its ok all other Graphite companies are actually riding the wave and doing extremely well with their communications and updates against their targets... - even the ones that were recently below Ton share price - TON must be the best long term bet if their Directors,CEO and management can get it right and actually start to work together and support and communicate to their shareholders...
TON Price at posting:
3.4¢ Sentiment: None Disclosure: Not Held
