The White House is now more desperate than ever to secure America’s supply chain of critical minerals.
That includes rare earth elements and battery materials, such as lithium, cobalt, and graphite–all of which are key not only to electric vehicles and energy storage, but to computer components, household appliances, and clean energy technology in general.
China controls most of this market …
And the only truly effective supply chain security move is to bring it all home.
While sparse announcements by junior miners exploring North American venues for new sources of these battery materials offer some hope, they are risky opportunities for investors.
Graphex has operations at home …
But it is also among the top producers in Asia, with key graphite processing facilities parked right next to one of the world’s biggest graphite mines.
It’s been producing for nearly a decade already, and now it’s aiming to quadruple production and build a bridge between its Asian and North American operations.
It’s our pick for a unique opportunity to get positioned in a major expansion that targets the heart of America’s supply chain insecurity–precious battery materials that can make or break the clean energy revolution. And it’s an opportunity with less of the kind of risk that comes with betting on junior miners hedging on a discovery of a commercial nature, and then being able to develop it.
Graphite isn’t a game for new entrants, and Graphex Group is led by veterans with proven production.
Demand for Minerals Like Lithium and Graphite Is Expected To Increase By 4,000%
Over the next few decades, the White House says that global demand for these critical minerals will grow by up to 600%.
But more specifically for minerals such as lithium and graphite used in EV batteries, demand will increase by as much as 4,000%.
The problem, says the White House, is that “The U.S. is increasingly dependent on foreign sources for many of the processed versions of these minerals. Globally, China controls most of the market for processing and refining for cobalt, lithium, rare earths and other critical minerals.”
Now, with the Russian-Ukraine war and the backlash of sanctions feeding a commodity supercycle that was already underway, securing the supply chain for these minerals is even more urgent.
EV sales are expected to double this year, auto giants are motivated to avoid battery supply chain disruptions and rising costs of raw materials.
And while lithium tends to get a lot of the attention when it comes to the supply squeeze, graphite is another overlooked critical element here, and analysts project that by 2030, graphite demand will be three times higher than supply.
That’s a concerning situation, especially for battery manufacturers who are looking at a multi-trillion-dollar industry that is marching forward at breakneck speed …
An energy storage market that is heading toward $426 billion …
And a huge lineup of European battery gigafactories, as well as more than a dozen new ones planned in the United States.
All of this indicates a global graphite market marching towards $50 billion by the end of this decade.
That’s because graphite makes up between 20%-30% of the material of every EV or energy storage battery. It’s the anode materials that make a lithium-ion battery possible in the first place.
The Graphite Bridge from Asia to North America
The United States currently doesn’t produce any graphite at all, and it can’t process it, either.
All of the processed graphite in the world comes from Asia, and of that 70% of the mined graphite comes from China. China, in turn, is responsible for processing near
Read Full Article at oilprice.com