There’s a strong path ahead for electric vehicles from companies like Tesla (NASDAQ:TSLA) and General Motors (NYSE:GM). In fact, with demand showing no signs of slowing, it’s increasing the need for high-quality metals, like graphite from companies such as Ceylon Graphite (TSXV:CYL)(OTC:CYLYF), Graphite One Inc. ( TSXV:GPH)(OTC:GPHOF), and Mason Graphite Inc. (TSXV:LLG)(OTC:MGPHF). After all, graphite is an essential material used for producing the anode of lithium-ion batteries using in electric vehicles and energy storage.
By 2030, the world could see approx. 125 million EVs on the road, which means we’ll need a good deal of graphite, according to Mining News North. Unfortunately, there’s a supply problem. One so severe, the USGS includes graphite on its list of 35 minerals and metals considered critical to the United States.
That’s Where Graphite Companies, like Ceylon Graphite (TSXV:CYL)(OTC:CYLYF) Can Help
Ceylon Graphite is involved in the exploration and production of graphite in historic resource jurisdictions in Sri Lanka. It holds a land package constituting 121 km² grids containing historic vein graphite deposits. These unique and comparatively higher margin vein (lump) deposits currently make up less than 1% of the world graphite production.
It's also well-positioned to grow shareholder value as demand for graphite grows because:
- Graphite is the “new oil.” The decarbonization of the energy storage and transportation sectors is quickly gaining momentum all over the world.
- It has access to the purest natural graphite on the planet, as you can see in the chart.
- It can get graphite to market cheap and quick.
- Graphite demand significantly outweighs supply on hand
- Ceylon Graphite is also geographically well positioned for the Eastern markets – China, Japan, and Korea in addition to Canada and the U.S.
The company also just announced it has opened an office in the United Kingdom (UK) to advance its strategic interests in innovative applications for graphite and graphene in multiple market segments including Europe’s massive push into vehicle electrification.
The UK is home to leading global research and technology advancement in graphite applications, is the birthplace of graphene, and is also where Ceylon’s Chief Science Officer and technology partners Dr. Siva Bohm and Dr. Mallika Bohm are located with their research labs.
“We see significant opportunity and definite need for our high-grade vein graphite to supply Lithium-Ion battery manufacturers in both UK and Europe”, said the Bharat Parashar, Chief Executive Office and Chair of the Board of Directors. “By being resident in-market we can more easily be directly involved in anode advancement for the EV and energy storage markets and work with our own scientists as well as government and other private sector researchers on innovative applications for graphite and graphene.”
Ceylon will continue to build-out its production capacity in Sri Lanka for high-quality, low-cost graphite from its mines while developing new patents for graphite and graphene uses in paints and coatings, construction materials, healthcare applications and anode improvements for the EV and energy storage markets.
Other related developments from around the markets include:
Graphite One Inc. offered the following comment on a new Executive Order (EO) issued by U.S. President Joseph R. Biden on February 24, 2021, aimed at strengthening critical U.S. supply chains. The EO identifies three technology sectors as critical supply chains: advanced semiconductors, “high-capacity batteries, including Electric Vehicle (EV) batteries”, and pharmaceuticals. The EO also identifies “critical minerals and other… strategic materials” as a fourth supply chain, essential to technology manufacturing and the Defense Industrial Base. In addition to being a U.S. Government-listed Critical Mineral, graphite is an essential material for both the renewable and EV Battery sectors, and for advanced semiconductor manufacturing. “Graphite One welcomes the recognition of renewable batteries, and EV batteries in particular as a critical supply chain,” said Anthony Huston, Chief Executive Officer of Graphite One. “The fact that graphite is essential to three ‘critical supply chains named in the Executive Order underscores the importance of Graphite One’s supply chain approach.”
Mason Graphite Inc. announced that the Li-ion prototype cells containing Coated Spherical Purified Graphite made at pilot-scale with graphite sourced from its Lac Guéret deposit have reached the important testing milestone of 800 charge & discharge cycles while retaining 82.0% of their initial capacity. Jean L’Heureux, Chief Operating Officer, commented: “While the lithium-ion battery applications are highly diversified, with each manufacturer having its own requirements in terms of battery cycle life and associated capacity retention, reaching 800 cycles with such retention is a decisive milestone, significantly de-risking our ultimate objective of reaching 1,000 cycles with 80% retention. This would rank the Lac Guéret graphite among one of the best performing anode materials currently available and pave the way for its commercialization in a variety of applications, including Electric Vehicles”.
Tesla Inc.’s target price was just raised to $3,000 by Cathie Wood’s Ark Invest Management. “According to Ark’s new model, in the best case scenario, Tesla could reach $4,000 per share in 2025, and in the bear case, $1,500. The company forecasts Tesla’s unit sales to be between 5 million and 10 million vehicles in 2025, assuming increased capital efficiency,” reported Bloomberg.
General Motors Company’s President Mark Reuss provided more details about GM’s next-generation Ultium battery chemistry and announced a joint development agreement with lithium metal battery innovator SolidEnergy Systems. GM’s lithium metal battery with a protected anode will feature a combination of affordability, high performance and energy density. The initial prototype batteries have already completed 150,000 simulated test miles at research and development labs at GM’s Global Technical Center in Warren, Michigan, demonstrating real-world potential. To accelerate Li-Metal battery commercialization, GM is working with several innovative companies and making investments that will allow the company to scale quickly.
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