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 Resources 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.