Electric vehicle (“EV”) lithium-ion batteries contain an anode (-ve) and a cathode (+ve).
The anode comprises +95% graphite with 35kg–75kg of graphite in a typical EV battery pack which contains 10x–15x more graphite (by weight) than lithium (in the cathode).
Battery anode material (“BAM”) is made from natural fine flake graphite (-100 mesh) or from a primary synthetic graphite.
Primary synthetic graphite is made from petroleum or coal refinery residue requiring high-temperature processing and producing much high levels of CO₂ emissions.
Mined and concentrated natural graphite is micronised, spheronised, purified (“SPG”) and then coated to become BAM.
In most cases <40% of the original graphite concentrate becomes BAM.
There are forecasts for an additional 100 million light EV sales to 2030 alone and a major supply deficit of natural fine flake natural graphite is expected.
China produces ~95% of the world’s BAM with non-China anode, Li-ion battery with EV manufacturers critically dependent upon China supplies.
China has insufficient natural fine flake graphite to meet internal demand and is importing concentrates via offtake contracts with many of the world’s new or proposed graphite mines.
China wants to grow and protect its battery and EV business and in December 2023 introduced ‘temporary’ export licence controls on graphite, anodes and EV batteries.
The USA Inflation Reduction Act is a multi-billion dollar initiative to stimulate in-country manufacturing of batteries and EVs by establishing reliable, independent supply chains of quality, sustainable critical minerals, including graphite. Access to IRA funds is restricted to enterprises or product inputs not associated with “countries of concern”.
The EU is introducing a similar supply chain stimulus initiative (“Critical Raw Materials Act”) with several other countries likely to follow suit.
The Kambale Graphite Project is strategically located and well timed to participate as an uncommitted source of natural fine flake graphite in the new critical mineral supply chains being established.
Ghana is a highly regarded, safe, politically stable and fast-growing jurisdiction with a long history of mining by international Tier-1 companies. It has a highly skilled workforce, excellent infrastructure, international ports and well established contracting and supply sectors. It has ambitions to establish West Africa’s first critical minerals hub.
