Graphite is a soft black to steel gray mineral that naturally results from the metamorphism of carbon-rich rocks, resulting in crystalline flake graphite, fine-grained amorphous graphite, veined or massive graphite. It is most commonly found in metamorphic rocks such as crystalline limestone, shale, and gneiss.
Graphite finds a variety of industrial uses in lubricants, carbon brushes for electric motors, fire retardants, and the steel industry. The use of graphite in the production of lithium-ion batteries is growing by more than 20% per year due to the popularity of cell phones, cameras, laptops, power tools and other portable devices. While the automotive industry has traditionally used graphite for brake pads, gasket and clutch materials are becoming increasingly important in electric vehicle (EV) batteries.
Graphite is the anode material in batteries and there is no substitute for it. The continued strong growth in recent demand has been driven by growing sales of hybrid and all-electric vehicles, as well as networked storage systems.
Many governments around the world are passing laws aimed at phasing out internal combustion engines. Automakers are now phasing out petrol and diesel vehicles in favor of all-electric vehicles. The graphite content can be up to 10 kg in a conventional HEV (hybrid electric vehicle) and up to 100 kg in an electric vehicle.
Car buyers are switching to EVs as range worries subside and more charging stations pop up and various government subsidies help to afford more expensive EVs. This is especially true in Norway, where government incentives have resulted in electric vehicle sales now outpacing internal combustion engine sales.
Motor Trend magazine reports that they expect 20 models to hit the market already, with more than a dozen new electric models to join them. Research firm IHS Markit expects more than 100 car companies to offer battery electric vehicle options by 2025. Electric vehicle market share could more than triple, according to IHS, from 1.8 percent of U.S. registrations in 2020 to 9 percent in 2025 and 15 percent in 2030.
About 2.5 million electric vehicles will be sold in 2020, of which 1.1 million will be made in China, up 10% from 2019, Motor Trend added. The publication says electric vehicle sales in Europe are expected to reach 19 percent by 2025 and 30 percent by 2020.
These electric vehicle sales forecasts represent a dramatic shift in vehicle manufacturing. More than a hundred years ago, gasoline and electric vehicles competed for market share. However, the cheap, powerful and simple Model T won the race.
Now that we are on the cusp of moving to electric vehicles, graphite companies will be the main beneficiaries of flake graphite production, which will need to more than double by 2025 to meet rising demand.
Post time: Aug-25-2023