(Imagevia World Bank Group May 2020 report.)
There is a rising demand among consumers, investors and industries at large to see a reduction in our global carbon footprint but meeting this demand will likely mean more reliance on metal and mineral extraction.
From wind, solar and geothermal power, as well as energy storage, more than three billion tonnes will be required within the
next 30 years to limit global warming by 2 degrees Celsius by 2100.
That comes from the latest report via the World Bank titled
“Minerals for Climate Change: The mineral intensity of the Clean Energy Transition”, which highlighted graphite to expect some of the highest demand, along with lithium and cobalt. The Bank expects potential demand to increase upward of 500% from global production levels in 2018.
From the report:
Graphite demand increases in both absolute and percentage terms since graphite is needed to build the anodes found in the most commonly deployed automotive, grid, and decentralized batteries.
Annual graphite production would need to hit 4.5 million tons by 2050 (or a cumulative of 68 million tons). The World Bank reported that graphite demand has increased nearly 500% from production levels in 2018. This surge demonstrates its critical role in the clean energy transition, specifically with Li-ion batteries, the most widely projected deployed battery technology.
Projected Annual Mineral Demand Under 2DS Only from Energy Technologies in 2050, Compared to 2018 Production Levels:
(Chart via World Bank Group May 2020 report.)
The purest source:
This is news full of opportunity for companies like
Ceylon Graphite Corp (TSX-V: CYL, OTC: CYLYF, Forum). CYL is a developer of a pure graphite play in Sri Lanka, where it is known to be some of the purest in the world and currently accounts for less than 1% of the world’s graphite production.
Ceylon Graphite holds a land package of 121 km² with grids containing unique and comparatively higher-margin vein graphite deposits.
The Company’s K1 mining site has been licensed by the Government of Sri Lanka, which also allows for more than 250 feet of underground multiborehole blasting, commercial production, use of all mining machinery and equipment and export of graphite. Underground mining operations like this further reduces pollution and the environmental impact of this project, while increasing competitiveness as the Company moves toward the cleaner energy future.
The purity of its resource also plays into both its environmental sustainability and can serve to lower its capex and opex costs. Ceylon Vein Graphite requires
no primary processing. It comes out “as mined” from vein graphite grading greater than 90% Cg purity in the ground, only requiring sizing prior to its purification furnace.
Already in business:
CYL reported in December 2019 that the Company had begun production at its operation in Sri Lanka. The path is clear for this Company to become a global player in graphite production. Leveraging its significant local experience and experience throughout Asia at large, with its business relationships and experienced leadership team, Ceylon is taking advantage of some of the cheapest and quickest-to-market natural graphite facilities in the world to meet the looming mega demand graphite.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.