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Growth of EVs & Battery Materials

  • Graphite is fundamental to every Lithium-Ion Battery chemistry, making up >95% of anode material
  • Graphite demand growth is expected to outpace other battery metals
  • Demand is shifting from synthetic towards natural graphite, due to lower cost and lower carbon footprint
  • Currently 73% of the world’s flake graphite & 99% of spherical graphite (BAM) is produced in China
  • Both EU and US have declared graphite a critical mineral
  • Dramatic growth of electric vehicle and energy storage sector – over 25% CAGR expected
  • Demand vs supply gap of natural graphite anode
  • Automotive lithium-ion battery demand is shifting from Asia to North America and Europe due to localization; OEMs want local production and better control on supply chain
  • Strong financial and legislative backing from US, Canadian, and European government
    – Internal combustion engine cars banned from sales in Europe & California from 2035
    – Tax credit for consumers to purchase electric vehicle

Raw material demand vs global lithium-ion cell/Gigafactory capacity

Source: Benchmark Mineral Intelligence 2023