Dec 15(Reuters) - As they scour the globe for the lithium, nickel and cobaltresources needed to keep China on top in the electric vehicle (EV) stakes,Chinese battery and EV makers are fretting about supply of another mineralcloser to home - graphite.
Graphite,in both natural and synthetic forms, is used for the negative end of alithium-ion battery, known as the anode. Around 70% of all graphite comes fromChina, and there are few viable alternatives for batteries.
Chineseproducers have their work cut out keeping up with global demand for graphite,which has surged along with rapid growth in the battery market in recent years.
ConsultancyBenchmark Mineral Intelligence (BMI) sees a roughly 20,000 tonne graphitedeficit in 2022, versus a similar-sized surplus last year. About 20,000 tonnesof graphite is enough to make batteries for roughly 250,000 EVs, an industrialsource said.
Top globalEV battery maker Contemporary Amperex Technology Co Ltd (CATL) (300750.SZ) is "desperate" to secure supply of key ingredients such as graphite to keep up with rising orders, said a person with knowledge of the matter.
"There's not enough graphite in the market for domesticplayers to grab," said the source, who asked not to be identified becausethe person was not authorised to speak to the media.
"Demand from clients such as Tesla (TSLA.O) is growing rapidly while supply of raw materials has been extremely tight," the source said, adding that the recent power rationing on industry had exacerbated the situation. readmore
time to do a deal
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