The graphite price might not reflect it, but there are serious concerns about how the forecast demand growth for the anode material for lithium ion batteries will be met in coming years.
The concerns go beyond simply the lack of new mine developments and the current lack of incentive pricing to meet the expected demand growth, with serious supply shortages possibly emerging well before the end of the decade.
Beyond the current lack of incentive pricing, the concerns also take in China’s grip on the key battery material (unlike lithium, graphite is present in all of the key battery technologies), from natural and synthetic graphite, through to battery-ready material.
The lead ASX-listed graphite stock Syrah (SYR) is a beneficiary having recently became an integrated producer by matching up its graphite mine in Mozambique to an active anode material operation in the US with the help of the US taxpayer.
Alkemy Capital Investments plc (LON:ALK) is focussed on developing projects in the energy transition metals sector. Tees Valley Lithium is developing a state of the art lithium hydroxide plant at Teesside, UK. Tees Valley Graphite is developing the UK’s first natural graphite active anode material processing facility at the ‘plug-and-play’ Wilton International Chemicals Park.
