Big plans Two Trends in Graphite for Batteries Are Driving Up Prices

Source: dpa 4 min Reading Time

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Natural graphite is improving, and anodes made from it are advancing. In China, there is an oversupply of synthetic graphite. Both trends will drive up prices. International Graphite is already responding...

Graphite electrodes for batteries consist of natural and synthetic graphite. Both materials will be in increasingly high demand in the future. That’s why projects, such as those by International Graphite and Westwater, are already in the starting blocks to seize the opportunity...(Image:  International Graphite)
Graphite electrodes for batteries consist of natural and synthetic graphite. Both materials will be in increasingly high demand in the future. That’s why projects, such as those by International Graphite and Westwater, are already in the starting blocks to seize the opportunity...
(Image: International Graphite)

International Graphite is reportedly pressing ahead with its plans for graphite production in Australia. Earthworks for the planned graphite micronization plant (final particle size between two and 200 micrometers) in Collie, Western Australia, began at the end of May. By the end of June, the contract with the construction company was signed. Completion, including Stage 2, is scheduled for the second quarter of 2027. At that point, a nominal capacity of 7,500 tons of graphite per year will be available. The construction costs are estimated at around eight million Australian dollars (approximately 4.8 million euros / $5.2 million). However, Collie is just part of a larger plan, as revealed. The processing facility is to be supplied with material from the Springdale graphite project, also located in Western Australia. With estimated reserves of 49.3 million tons of graphite and a total graphite content (TGC) of 6.5 percent, Springdale is also Australia's second-largest graphite deposit and one of the 15 largest globally—offering significant remaining exploration potential.

International Graphite signs Collie offtake deal with Wogen

There are already buyers for the production. Shortly before signing the construction contract, International Graphite sealed a deal with a Hong Kong-based subsidiary of the British company Wogen. Starting from the beginning of production, Wogen will purchase at least 3,000 tons of micronized graphite per year. The aim is to provide the Asia-Pacific market with a new source of high-quality industrial graphite products—particularly for users in Japan and South Korea, as these are two of the fastest-growing markets in the region for advanced manufacturing materials. Wogen specializes in trading specialty metals and minerals, supplying governments, steelworks, industrial, technology, and aerospace companies, as well as foundries, the alloy industry, mining companies, and smelters. The fact that a company like Wogen is securing production capacities early speaks to a market that, despite rising demand in recent years, has only developed moderately. The focus is evidently on natural graphite. However, others also believe that demand for natural graphite is increasing due to battery manufacturers. Generally, prices for natural graphite are significantly lower than for its synthetic counterpart. However, overcapacity of synthetic graphite in China has largely neutralized the price differences.

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