Base on you question I will do my best to explain.
Re Question: Synthetic graphite is said to sell from anywhere between $10,000 - $20,000 per tonne. The hope of many natural graphite companies is to replace synthetic graphite based in part on the price differential between synthetic graphite and natural graphite.
I am trying to get a handle on why it seems to cost so much to produce synthetic graphite.
The cost of the pet coke is around $500 per tonne based on your earlier post.
I would imagine that the labour costs should be quite low as it doesn't look to be a labour intensive business based on descriptions on the processing methodology on the internet.
That seems to leave energy costs. Does the energy component really equal to say $8,000 per tonne? It seems to be an extraordinary high amount.
What is the true average selling price of "generic" synthetic graphite?
Will natural graphite ever truly replace synthetic graphite? If so, what would be the size of the synthetic market that could be replaced by natural graphite?
Re Answer:
To all readers the graphite market is very different then any other minerals and the reason is their are so many different types of graphite that compete with mined Natural Flake Graphite which is the type all or most of the Jr Graphite Mining companies are investing in.
Pauldola asks a very good question. I believe the best place to learn about all the different types of Graphite is Asbury Graphite Mills web site www.asbury.com
there are 2 type of synthetic. The highest volume type and the lowest cost type is Secondary Synthetic Graphite which is a scrap graphite that come from graphite electrode and specialty graphite producers.Yes it produce from Pet coke and Coal Tar pitch which is then baked and then graphitized to over 3000 C. Since it is a scrap synthetic graphite the producers must sell off all they produce at what ever market price they can get.
The primary synthetic type is what is mostly used in Li-Ion batteries. This type is make from various type of carbon and is a very controlled graphite that gives the graphite anode the exact properties the battery company requires. Producers all have a different process and the net result is each producers has slightly different properties. This is the type that sells 10,000 to 20,000 per ton. Suppliers current charge a high price because the battery companies are willing to pay a high price for controlled properties. Supplier can lower their price if needed at any time. Natural Flake Graphite just does not have the exact same controlled properties but is much lower cost.
The battery companies are the ones that will decided if Natural Graphite can replace high price Primary synthetic.
