The graphite price differentialNorthern Graphite, which has a graphite flake mine in Canada, is also looking to develop an anode processing plant in the country, as well as a graphite mine in Namibia it hopes to restart next year. CEO Hugues Jacquemin says defining more clearly what is a ‘foreign entity of concern’, as well as plans to restrict subsidies if graphite material from one is used in US batteries, has really pushed the dial for a supply chain to start to emerge.“What the tariffs do is raise the bar for pricing these materials in the region, and that creates a more fertile environment for us to attract investment and to develop the supply chain in North America,” he says.However, raising capital for these projects is still challenging, he adds, because their cost structure is higher than in China. There is also uncertainty around the election and the fact that some of the incentives will come into force afterwards.The average selling price for the company’s natural graphite flakes is around $1,500 per tonne (t), compared with around $600–800/t in China. To commercially process the material in Canada, the company needs to sell it for $8,000–10,000/t , says Jacquemin. Today, it can be bought in China for $6,000–7,000/t. Factoring in the 25% tariff, the product becomes more competitive on the lower end of the scale, he says.“Battery and EV [electric vehicle] makers are not too happy paying more for their material. Their argument is, why do we need to pay more and develop a local supply chain when there is one available in China? The answer is because that supply chain is not secure,” he says.
Syrah gets a mention in the article as well.
SYR Price at posting:
29.5¢ Sentiment: Buy Disclosure: Held
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