We're part way into an EV battery raw material supercycle with...

We're part way into an EV battery raw material supercycle with demand and prices set to go higher until at least 2030.

Graphite is trailing the field but 's time will come.

Lithium prices have doubled in the past two years and there's more on the way despite the fact it is relatively easy to get to battery grade. The reason is that it is is is experiencing the biggest supply shortfall currently.

Supply shortages of other EV battery minerals including cobalt, manganese and copper are evident and prices are rising but to a lesser extent.

These battery raw materials are all mostly sourced in the west.

The world graphite supply is dominated by China and most of that is synthetic and dirty.

Flake prices are beginning to move, nothing like Lithium but that will change. As countries move further toward cleaning up manufacturing processes by mandating more stringent standards, the synthetic natural balance will move in favour of natural despite China moving toward renewables to power synthetic graphite manufacturing. China will likely need all locally produced synthetic anode and more to satisfy for domestic demand.

It takes time to build a new graphite mine and to then produce battery grade anode material, at least ten years.

So between now and 2025 will can expect to see graphite anodes and anode suitable graphite flake prices to steadily move up as EV production increases and in 2026 when the battery passport rules kick in, the price of clean green graphite anode material is likely to move much higher as shortages become evident in the face of even greater demand for EVs.

Add to that the fact the world is moving away from long supply chains to shorter ones for cost and reliability reasons meaning that with limited supply of high quality graphite anode available in Europe in particular but also in Asia, Talga is very well placed to capitalise.

And that is probably why MT has said he is in no hurry to churn out anodes, why do it when prices are low? Better to ramp up production as the supercycle gains pace when prices start kick much higher and EV demand accelerates.

All indications are that the market for high quality graphite anodes is becoming and and will remain a sellers market for many years to come.

If that turns out to be true then the DFS numbers on pricing will prove conservative and when Talga gets into production we are likely to see much better bottom line results than today's numbers suggest.