Understanding graphite demand, page-3

MLS drilling results
I haven't posted here for a while since I became a non-holder, as I disclosed a while back, but the results here are very good to date. The results to date indicate good grade, with a resource that has depth, width and length (and open in many parts for further discoveries). The deposit is also of very good grade fitting the bill in the opening post to this thread, and in essence has only further upside with more exploration.

It is about flake size and grade. Anything above 7-9% is acceptable depending on flake size, and some of the drills here are showing grades north of this.

To be frank, sentiment is the problem here, as you all know yourselves, because with good management those hits would be moving the SP by a mile IMO, but trust here I think is a little shot. That is what needs to change here for SH to gain benefit from these hits - obviously MOUs, LOIs, getting a reputable partner or even some new personnel on the BOD that the market trusts, and things will change here relatively quickly IMO. Adhering to timelines and having a plan is also another important factor.

Graphite will not be replaced in the anode of batteries
Point of this post is probably just to provide some research I have done elsewhere and over time but relevant here for holders so apologies if you are thinking bloody non-holder drinking VB is posting on our threads etc etc etc.

If there is any uncertainty in graphite demand it might be because of 'talk' elsewhere around graphite in the anode been replaced by lithium in solid state batteries. IMO, solid state batteries remain conceptual in nature anyway, and personally if they did get up they would IMO only be used probably in the higher end expensive EV market, meaning IMO more traditional battery chemistries will still be required (been NCA and NCM).

My view is that graphite will still be the dominant material used in the anode for lithium (ion) batteries, more generally, noting that graphite itself has other uses. I went through the issue of battery and battery makeup in a lithium stock I invested in and another cobalt stock I am not invested in, but the information in the embedded posts below is also relevant here IMO given graphite's role in the anode of lithium ion batteries. Your call to read any of the embedded posts above and below:
Post #: 39255454
Post #: 39278027
Post #: 39495372

Some demand outcomes
I thought I would also go back to the opening post of this thread and post some research I did a while ago to provide a gauge on graphite demand needs in lithium ion batteries in general (i.e. NCA and NCM battery types which are the predominant battery chemistries in lithium batteries for the cathode as the anode in each is graphite) (excluding other areas of graphite demand like steel).

Essentially the anode in lithium ion batteries requires around 1kg of graphite (spherical graphite - based on graphite flake - and synthetic graphite) per kWh battery capacity - refer opening post in this thread for the data. Average battery size is around 50kWh which implies 50 kg of graphite (refer opening post to this thread)
https://investorintel.com/market-analysis/market-analysis-intel/analyst-math-teslas-potential-new-demand-flake-graphite/

The key becomes the share of synthetic graphite to spherical graphite ratio, and in a general sense, the estimates suggest a 50/50 share - as per opening post - so in effect (and important to graphite producers) is that 25 kg of that graphite (in a 50 kWh battery) in the anode is spherical graphite (assuming the 50/50 split is what occurs but that seems to be in the ballpark). The literature also suggests you need 2kg to 3kg of graphite flake for each kg of spherical graphite, a key point as well for working out graphite flake needs.

Against the above, in 2018 just 2 million EVs were sold worldwide, but this is expected to increase to 15 million to 22 million per annum EVs by 2025 - 2030 (see earlier linked post for references of where these figures come from) and that means significant increase in graphite demand. At 22 million vehicles you need 1.1 million to 1.65 million tonnes of graphite flake just to serve the lithium battery needs for the EV market (on the 50/50 assumption above). This is before one talks about the other uses of graphite, such as in the traditional steel market. The workings are below:



Obviously the data suggests there is ample room for a number of new entrants to the graphite market and obviously if MLS can get its act together it IMO has the potential to become one.

All IMO but I will continue to watch on as an interested observer. Just would like a sign that management are up to the task here and I will buy in again to go through all the pain yet again here LOL.

GLTAH and I will post here from time to time if I have any research I feel you might be interested in.

All IMO IMO