Graphite and Its Uses

  • The key graphite end uses are battery anodes (high growth market), expandable graphite (high growth), composites, refractory and foundry, steel markets, gaskets, seals, brake linings and lubricants.
  • Western world and Chinese investment is strong in battery ‘mega-factories’ and this will increase competition for raw materials such as graphite, lithium and cobalt.  Most mega- factory capacity forecasts have been largely representative of current EV visibility only and this is just the beginning given the possibilities with energy storage.
  • The Volkswagen strategy highlights the structural shift towards electrical vehicles with a target of 20%-25% of group sales in 2025 that implies annual sales of between 2m-3m EVs. To support this strategy, the fleet requirements of ~150Gwh by 2025 equates to ~165ktpa anode material or ~165ktpa spherical graphite.  Based on current Chinese flake yields into spherical graphite of 30%-40%, this would equate to ~470ktpa of natural graphite showing what possible demand presents itself in the industry.
Significant investment underway in the battery supply chain - Source: Deutsche Bank, May 2016
  • As the Nachu Graphite Project progresses, Magnis Energy Technologies Ltd is focused on the growth of the Company to support the expected growth in the graphite or battery powered industries and be a key member of the supply chain.