SPONSOR: Lomiko Metals LMR:TSX-V – A Canadian exploration-stage company discovered high-grade graphite at its La Loutre Property in Quebec and is working toward a Pre-Economic Assessment (PEA) that will increase its current indicated resource of 4.1 Mt of 6.5% Cg to over 10 Mt of 10%+ Cg through a 21 hole program at the Refractory Zone. Click Here For More Information
- “An opportunity exists to develop a North American market. Â
- The new Electric Vehicle market supply of critical materials cannot be dictated by Chinese market conditions. Â
- Lomiko is in an excellent location and the timing is right to move forward.”, stated A. Paul Gill, CEO of Lomiko Metals
As the dust settles following Syrah Resources’ decision to slash production levels in September 20‌19, the industry looks for a new path to meet demand growth from the EV sector. Mozambican production recedes After increasing production levels at its Mozambican Balama project to 92kt in the first half of 20‌19, Syrah Resources made the decision to significantly lower production from more than 15ktpm (kilotonnes per month), to around 5ktpm. Could other graphite projects fill the supply gap? The removal of large tonnages of Mozambican material looks initially promising for other potential producers and there are many waiting in the wings across Africa as well as North America and Europe, at varying stages of development.
“An opportunity exists to develop a North American market. This is imperative for the new Electric Vehicle market supply of critical materials cannot be dictated by the Chinese market conditions. Lomiko is in an excellent location and the timing is right to move forward.”, stated A. Paul Gill, CEO of Lomiko Metals
However, there is now much concern in the industry that Syrah’s problems will inhibit future investment in graphite projects. At the start of 20‌19, the average price of Chinese flake graphite (fob, 94% C across all flake sizes, as reported by FastMarkets) had fallen to US$787/t and had reached US$680/t in September where it has stayed through to late October 20‌19. Meanwhile, the Chinese supply chain will soon be affected by a new round of plant inspections and temporary closures, as confirmed by an official at the 70th anniversary of the founding of the People’s Republic of China. The pending nationwide probe into environmental compliance is expected to hit in late 20‌19/early 20‌20 and will have the performance of state-owned firms as one of its main priorities. In addition to pollution controls, the efficiency of state-owned plants has also improved during previous rounds of closures.
Prices are expected to remain steady in the short term with temporary closures eating into Chinese overcapacity. This situation could change, however, once EV growth begins to recover in China, especially if a weak appetite for investment has yet to encourage any additional new capacity outside of China by the time significant demand builds in the coming years. Longer-term pricing could, therefore, be more positive.
Tags: #Anode, #Battery, #Demand, #Electric, #graphite, #High-Grade, #Ion, #Quebec, EV, graphene, Lomiko