Any number of these projects potentially has what it takes to become successful graphite mines, especially given the pressure that demand from lithium-ion batteries and other applications might put on the overall supply chain. However, to be in a position to be able to produce battery-grade graphite by 2017, when Tesla says that it will commence production ramp up of the Model E, only projects that are far enough along are likely to have the opportunity to capitalize on the demand from the gigafactory. One can argue as to how to define "far enough along," but my suggested requirements would include:

  • The project should have as a minimum, Demonstrated mineral resources (i.e. Measured + Indicated);
  • The project should have a completed Feasibility Study *FS), or have one underway;
  • A purification process for getting to battery-grade (>99.9% Cg) should have been defined and successfully tested (preferably without using the wet acid method); and
  • A spheroidization and micronization process should have been defined and tested.

Additional considerations relate specifically to potential costs of production, and include:

  • Initial grade of in-situ graphite (relates to beneficiation costs);
  • The resulting purity levels of the resulting run-of-mine (ROM) concentrates after beneficiation (relates to subsequent purification costs);
  • The proportion of smaller flake materials with higher purity levels after beneficiation (related to subsequent spheroidization and micronization costs and yield levels);
  • Whether or not a coating process has been developed and tested for the spheroidal graphite; and
  • Proximity of the project to the southwest US, proposed home of the Tesla gigafactory.

I acknowledge that there can be no 'definitive' list of criteria for assessing projects for this exercise, but nevertheless, the above are what I've chosen to use. I re-iterate that I am looking here only at the potential ability of graphite projects to service the needs of the Tesla gigafactory within the announced time frame for its development. There are plenty of other future opportunities for companies and projects that might not quite be ready for the gigafactory.