That question and more is answered in a new report co-authored by ARPN Expert Simon Moores LINK and his colleagues at Industrial Minerals Data.

As Simon writes:

“Does Elon Musk really know where Tesla Motors’ battery grade graphite comes from?

The chances are no, and neither do the sellers as the spotlight intensifies on the sourcing of critical minerals and metals that will fuel the new age battery economy

Tesla Motors’ CEO Elon Musk was forced to defend the company’s sourcing of graphite used in its electric vehicle (EV) batteries following a Bloomberg article in February linking the company to controversial graphite mining in China.

The link between Tesla – the US’ most high profile electric vehicle (EV) manufacturer – and environmentally damaging practices as far upstream as the mine seems harsh but is becoming unavoidable for large public companies.

In reaction to the story, Musk took to Twitter to explain that the company’s graphite was sourced in Japan and was mined on a “clean way”. But that didn’t really tell the whole story.

In fact, Japan does not operate any graphite mines. It sources all of its product from China.”

Read the full article @ data.indmin.com/Tesla

The post Does Elon Musk Know Where His Giga-Metals Will Come From? appeared first on American Resources Policy Network.

Wide-reaching controls on China’s natural resources continue to be at the forefront of its shift to a high value economy.

Already industries like rare earths and phosphate fertilizer are tightly controlled by government-forced regulation. The question remains whether graphite – the 9th most critical raw material according to the British Geological Survey – is headed for the same fate.

Natural flake graphite is used as a key component in all battery technologies, the batteries that will power a shift to electric vehicles and the batteries we all rely on for mobile technology today. China controls 70% of supply while the USA has no active production. In fact, the whole of North America only produces 3% of the world’s flake graphite from one mine in Quebec, Canada.

Buyers of graphite – which are predominately steel refractory manufacturers – have become over-reliant on cheap product from China, but those days appear to be over as the country looks towards limiting low value exports in favour of high value domestic manufacturing.

Common restrictions the Chinese government has imposed on its miners include:

• Closure of smaller mining pits under 20,000 tonnes/year to encourage larger pits and economies of scale
• Closure of older, inefficient processing plants
• Installation of plants capable of producing value added products such as spherical graphite
• Redirection of raw flake graphite material to these value-added plants and away from exports
• Potential for an export quota system such as in the magnesia and fluorspar industries in the past
• Heavier taxes for exports of raw flake graphite material

If even some of these come to fruition in the future, the global graphite supply landscape could look very different.

Download a presentation on the subject here.

For companies and countries used to counting on China for a relatively cheap and reliable graphite supply, Moore’s assessment is a warning sign that future supply may be far less certain.

The post What are China’s intentions for its graphite production? appeared first on American Resources Policy Network.

Industrial Minerals, the London-based intellectual home of one of our experts, Simon Moores, is hosting a conference on Lithium Supply & Markets in Las Vegas this week.

Over the past few years, Lithium has seen increased attention due to its relevance in battery technology. Lithium Carbonate is a key component in the manufacture of Lithium-Ion batteries, the batteries “that have been chosen to power the next generation of electric vehicles.”

Speakers at the event, which kicked off yesterday and wraps up on January 31, include industry representatives and other experts from the United Kingdom, the United States, Australia, Canada, Argentina, Peru, Chile and China.

While Lithium presently only makes the watch list of the American Resources Risk Pyramid, chances are this may change. With the United States being more than 80 percent reliant on foreign Lithium imports to meet domestic manufacturing needs, keeping a close eye on market and supply outlook is not only a good idea – it’s a necessity.

To learn more about the conference click here.

The post Lithium Supply & Markets Conference held this week appeared first on American Resources Policy Network.

ProEdgeWire’s Graphite and Graphene Weekly Review sees surging demand for graphite and its derivative graphene, not least because of their important role in battery technology, where graphite continues to be a traditional component, while graphene is considered a major factor in future generation batteries. Recent reports of aircraft batteries catching fire won’t change that – as ProEdgeWire’s Allesandro Bruni points out: “for all the gloom experienced by the Boeing, the solution to its problem will be found and it will still involve batteries using graphite anodes.”

Corresponding with ProEdgeWire’s findings, a new USGS report on graphite outlines increases in both U.S. domestic graphite demand and prices paid for the material. Gross domestic imports of graphite for consumption rose by more than 7 percent from 2010 to 2011.

While demand is increasing, China, which not only dominates a large share of global graphite supply but also holds all of the spherical graphite processing technology, is pushing to regulate its graphite industry and – very similar to the Rare Earths situation – is in a position to engage in geopolitical powerplays in this field. In this case, however, the saving grace may be that with graphite and graphene, the rest of the world still has a few years left to correct the problem if it places an emphasis on supply diversity now.

If you’d like to learn more about the relevance of graphite and why graphene may just be the “new black,” check out American Resources expert Simon Moores’s study titled “The Natural Graphite Report 2012.” The report by Moores, a London-based graphite market specialist with Industrial Minerals, reviews “every major graphite producing company around the world, building from the bottom up data and analysis of the industry. It also contains a focus on the commercialisation of graphene, its production and demand potential.”

The post As graphite demand increases, geopolitical dimension becomes more apparent appeared first on American Resources Policy Network.

2013 rebound after poor year

2012 has been a poor year for graphite demand. Trading activity has been sapped out of the industry since September with little sign of return until the New Year.

The conference heard that Chinese production is predicted to have fallen by around 4% in 2012 primarily due to slowing construction markets around the world and a reduction in the need for steel and refractories.

China is also pushing to regulate its graphite industry – a dated and fragmented industry – with a blanket ban on new graphite processing plants in Shandong, a major producing province.

The Chinese government is eager to limit lower value exports in favour of higher value products. In the context of graphite, at present it ships raw material to Japan or South Korea to be made into battery anodes and batteries which it buys back and a premium rate.

This situation strengthens the argument for new mines outside of China and supply diversity is high on the agenda for the graphite industry.

These factors alongside an anticipated rise in demand have encouraged market entry, however Stephen Riddle, CEO of Asbury Carbons, has urged the industry to learn from the mistakes of its past and avoid flooding the market with supply.

This was seen in the early 1990s, when a string of new graphite mines went into production before promptly going out of business due the emergence of low cost Chinese production and shortfalls in anticipated demand. This caused production to nearly half between 1990 and 1995, and by the early 2000s all but one of five new mines went bankrupt.

Natural Graphite end markets in 2012

Source: The Natural Graphite Report 2012, Industrial Minerals Research
 
 
Industrial Minerals Data

Industrial Minerals Data is a new service providing detailed prices and analysis the graphite and fluorspar industries launching January 2012.

Simon Moores, Manager, Industrial Minerals Data – smoores@indmin.com
Andy Miller, Junior Analyst, Industrial Minerals Data – amiller@indmin.com

The Natural Graphite Report 2012

Launched in October 2012, The Natural Graphite Report is an extensive market study focusing solely on natural flake, vein and amorphous graphite supply, demand and pricing.

Data, analysis and forecast for the next five years

• New, original data from Industrial Minerals
• Unique country supply reviews including: China, Brazil, India, North Korea, and Canada
• Major demand drivers – Li-ion batteries, refractories, & emerging markets
• How will prices react? Historical analysis and forecast
• Demand destruction risks
• Critique of the graphene revolution

For more information click here.

The post EV uncertainty dominates discussion at Graphite Conference – Part 2 appeared first on American Resources Policy Network.

The future for electric vehicle (EV) batteries dominated discussion at Industrial Minerals 2nd Graphite Conference in London last week, despite being only the fourth largest market for the industry.

Graphite’s use as the anode material of choice in lithium-ion batteries has gained it critical mineral status which has buoyed the sector over the last 18 months. By volume graphite is the largest raw material used in lithium-ion batteries – an electric vehicle (EVs) contains between 28kg and 28kg of graphite.

The question still remains how much graphite will be needed if EVs take off. The battery sector serving EV manufacturers has the potential to grow at 20% a year, but by volume is still far off the leading consuming market – refractories.

Refractories – high temperature linings and bricks consumed primarily in steel manufacturing – consumed 39% of natural graphite production in 2012 with batteries accounting for 9%.

Despite this, discussions centred on EV battery potential and the technology to process the raw material into a product suitable for the sector, namely spherical graphite.

China holds the bulk of spherical graphite processing technology at present, something which is of concern to western manufacturers. China also produced 79% of natural graphite output in 2012, an even more immediate concern to the industry eager to avoid a rare-earths style dependency.

These are some of the main factors that have sparked into exploration activity over the last 18 months, especially in Canada which has led the world’s search for new graphite projects. These newer entrants were understandably more bullish on future demand than existing producers at the conference.

Graphite has recently gone through what lithium and rare earths experienced a few years ago. The furore which engulfed the industry in 2011 has calmed significant in 2012 as access to investment became difficult for many publically traded junior companies in North America.

2013 is expected to see an upturn.

The post EV uncertainty dominates discussion at Graphite Conference – Part 1 appeared first on American Resources Policy Network.

In light of its traditional uses, its importance for the new Li-ion technology, and the ostensibly endless potential applications for the “new super material graphene,” the international graphite market has seen a boom in recent years. However, with China not only dominating global graphite supply but also holding all of the spherical graphite processing technology, supply issues loom large.

The event, which will take place on Dec. 5 and 6 in London, reflects the growing relevance of graphite, and will address questions “surrounding whether or not graphite can fulfill its predicted potential as one of the most lucrative and highly used minerals of the next decade.”

Click here for more information on the 2nd Graphite Conference 2012.

The post American Resources experts to speak at international graphite conference appeared first on American Resources Policy Network.

Graphite’s uses have long been diverse, but, according to the experts at Industrial Minerals Data, the “emergence of the Li-ion battery era” – with Li-ion technology being key to our everyday portable electronic gadgets – has the “potential to turn the industry on its head.” Coupled with the ostensibly endless potential applications for the “new super material graphene,” and with supply challenges looming large, Graphite may just be “the new black.”

A new study by London-based graphite market specialist with Industrial Minerals and American Resources expert Simon Moores entitled “The Natural Graphite Report 2012” reviews “every major graphite producing company around the world, building from the bottom up data and analysis of the industry. It also contains a focus on the commercialisation of graphene, its production and demand potential.”

The geopolitical dimension of resource policy becomes apparent with Graphite, too. As Moores points out, much like in the Rare Earths realm, China not only dominates a disproportionately large share of global graphite supply, it also holds all of the spherical graphite processing technology – with the difference being that the rest of the world has a few years to correct this situation if it wants to avoid a scenario similar to the rare earths crisis.

Click here to access the study ($), and read more about the report in this interview with The Gold Report. Stay tuned for a forthcoming blog post from the author of the report, Simon Moores, himself.

The post “The New Black”? New study examines graphite’s potential appeared first on American Resources Policy Network.

Here’s how IndMin’s Laura Syrett breaks down the news about the new “Baotou Rare Earth Product Exchange Co. Ltd” in her article:

• Led by Baotou Steel Rare Earth Hi-Tech, the trading platform, the stated goal of which is to trade REEs “in a way that will regulate prices and ensure greater market transparency,” will involve some of the key players in China’s Rare Earths production, among them Xiamen Tungsten, Sichuan Jiantong Rare Earth Co. Ltd and Inner Mongolia Hi-Tech Holding Co. Ltd.

• Syrett quotes American Resources principal Daniel McGroarty, who argues the mechanism will have little effect on market transparency, and feels that China’s recent announcement to effectively take 20 percent of its Rare Earth capacity off the market will be far more significant for the industry.

• Carole Ferguson with UK investment bank Fairfax IS Plc disagrees in an interview with the BBC, and, while not expecting “minute-by-minute pricing”, presumes that the platform will be a “transparent, formal marketplace.”

However, whether or not the platform will provide a window into the wheelings and dealings of China’s Industry, analysts agree that ultimately, China’s move is once again is about control – which is all the more reason for the U.S. to step up efforts to reduce our (unnecessary) foreign mineral dependencies.

The post China Opens Rare Earth Trading Platform appeared first on American Resources Policy Network.

He led the research and publication of the forthcoming market study, The Natural Graphite Report 2012, which will provide data, analysis and forecast for the next five years. Moores also served as consulting editor on Metal Bulletin Research’s Lithium Market Outlook in 2009 and 2011, and launched the bi-annual publication Critical Materials for Green Energy in September 2011.

Moores can be reached via email at smoores@indmin.com, and his twitter handle is @sdmoores.

To learn more about his work, and our other panelists, visit our experts page.

The post American Resources panel of experts continues to grow appeared first on American Resources Policy Network.