In recent months, the business cases for prospective graphite mines are becoming increasingly attractive. The changing demand for graphite is seeing this historically run-of-the-mill commodity become ‘hot”.
Natural, mined graphite has traditionally been most used in refractories and the like; lithium ion batteries for electric vehicles is changing this. Batteries will be the largest sector for natural and synthetic graphite in the coming years.
Synthetic graphite can substitute for natural graphite, if the much higher costs and enlarged greenhouse gas footprint are acceptable. Further out, silicon may erode some of the demand for natural graphite, but not any time soon.
Many jurisdictions have been prompted to recognise the need for graphite in the energy transition. Of the seven that have published critical elements list, graphite is the only one that is identified as such by all.
On a gramme basis, diamonds are orders of magnitude more precious than graphite, but as a market, graphite is the much more valuable allotrope of carbon. With a market valuation set to grow for years to come.