With the EV Boom Accelerating, Now is the Time to Invest in Graphite

July 19, 2023 - Baystreet.ca


Graphite demand is only set to soar. In fact, according to Proactive Investors, “Graphite, so the thinking goes, is likely to play a central role in the greening of the global economy. That’s because graphite is a key constituent of all next generation batteries. A frequently cited statistic issued by the World Bank last year estimates that more than 50% of the demand created for new batteries is or will be for graphite. Lithium, the headline-grabber, accounts for a much more modest 4%. By weight, graphite accounts for more than 28% of an electric vehicle battery, ahead of aluminum, next, with just under 19%, and then nickel.” That’s all great news for companies such as Ceylon Graphite (TSX: CYL) (OTC: CYLYF), Tesla (NASDAQ: TSLA), Nouveau Monde (TSXV: NOU) (NYSE: NMG), Mason Graphite Inc. (TSXV: LLG) (OTCQX: MGPHF), and Graphite One (OTC: GPHOF) (TSX: GPH).

We also have to consider that graphite demand will only accelerate with global leaders demand lower emissions. The U.S. just promised to cut emissions by up to 52%. Europe says it’ll cut emission by up to 55%. China will stop releasing CO2 in the next 40 years. In doing so, they all want millions of electric vehicles on the roads.

Look at Ceylon Graphite (TSX: CYL) OTC: CYLYF) for example.

The company just announced that Ceylon Graphite achieved new concentration and conductivity records when studied in the manufacture of an adaptable sensing platform for chemical sensing. The research, published in the Royal Society of Chemistry’s “Nanoscale” Journal, was conducted by partners at the Molecular Sciences Research Hub at Imperial College London and specifically incorporated Ceylon’s vein graphite to produce a low-surface-tension sprayable graphene ink that was key to the sensor’s functionality.

A summary of the test results, completed in January 2023 is highlighted below:

- Ceylon graphite was used to create high concentration, graphene/polyvinylpyrrolidone inks, with record-breaking concentrations as high 3.2 mg mL-1.

- Raman spectroscopy was used to show high-quality graphene flakes produced via liquid phase exfoliation.

- The Ceylon-based graphene device was successfully used to detect for pH within the range of pH 3 - 11.

- These results demonstrate the potential of high-quality graphite to empower the next generation of nanomaterial-based diagnostics for biological and chemical sensing.

“Our findings highlight the promising pH sensing capabilities of the Ceylon graphene-based devices for pH sensing, which can be deployed for a variety of medical and environmental applications,” said Dr. Felice Torrisi, corresponding author of this work and principal investigator. “In particular, the sprayed “Electrolyte-gated Graphene Field-effect transistor” (EG-GFET) fabricated using Ceylon graphite outperforms any other EG-GFET prepared by any other technique, demonstrating the unique characteristics of Ceylon graphite for high quality graphene inks with electronic grade suitable for large area printed electronics, integrated circuits and sensing. We see this as a breakthrough with Ceylon vein graphite aiming to uncap the potential of graphene inks for printed electronics by demonstrating high-performance devices suitable for applications ranging from flexible and wearable electronics to sensing and automotive.”

“We are thrilled that world-leading researchers have discovered the advantages of our high-carbon vein graphite and its potential applications in the worlds of graphene and nano-technologies,” said Ceylon CEO, Sasha Jacob. “This is a key area of our future development and one that provides high-margin value-added products to our portfolio.”

Other related developments from around the markets include:

Tesla just announced, “In the second quarter, we produced nearly 480,000 vehicles and delivered over 466,000 vehicles. Tesla will post its financial results for the second quarter of 2023 after market close on Wednesday, July 19, 2023. At that time, Tesla will issue a brief advisory containing a link to the Q2 2023 update, which will be available on Tesla’s Investor Relations website. Tesla management will hold a live question and answer webcast that day at 4:30 p.m. Central Time (5:30 p.m. Eastern Time) to discuss the Company’s financial and business results and outlook.”

Nouveau Monde Founder, President, and CEO, Eric Desaulniers recently said: "Thanks to our fully integrated Phase-1 operations and 110+ employees committed to our development, we have made headways over the past months to optimize our advanced manufacturing technologies, engage with tier-1 customers, and secure key commitments to finance and commercialize our Phase-2 projects. The current North American market landscape is now crystalizing around major battery producers that are expanding their local production plans in partnership with electric vehicle manufacturers and strengthened by governmental incentives on each side of the border."

Mason Graphite Inc. in collaboration with Nouveau Monde Graphite Inc. released the results of a preliminary economic assessment, according to National Instrument 43-101 Standards of Disclosure for Mineral Projects, for a new project covering Mason Graphite's Lac Guéret graphite deposit, the Uatnan mining project located in Québec, Canada. Arne H Frandsen, Chair of NMG, declared: "NMG's vision is to become North America's most important producer of battery grade graphite. The Uatnan Mining Project aligns with our vision of progressive, integrated growth that caters to the market's requirements for high-quality graphite materials, local supplies, ESG-driven development, and large volumes to meet EV production levels. Building on our Matawine graphite operation's successes, I am confident that our extended technical team's expertise will enable us to develop what is projected to become one of the world's largest graphite mines."

Graphite One, planning a complete domestic U.S. supply chain for advanced graphite materials, announced that it and its wholly-owned subsidiary, Graphite One (Alaska) Inc., have entered into an unsecured loan agreement for advances of up to US$5 million with Taiga Mining Company, Inc., a controlling shareholder of the Company. The loan agreement follows the announcement of a US$37.5 million U.S. Department of Defense grant to accelerate completion of Graphite One's Feasibility Study.

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