ON THE NEW RACE FOR GRAPHITE

By Éric Descarries

With new US Inflation Reduction Act (IRA) standards forcing American automakers to use local materials and avoid foreign resources, the demand for graphite – a crucial ingredient in the production of lithium-ion batteries – is set to shift from China, the world’s largest supplier of the material, to other countries, including those in the Americas. According to S & P Global, worldwide demand for graphite will rise from 790 kilotonnes in 2023 to some 3,100 kilotonnes in 2030. In North America alone, this demand will rise from 56 to 620 kilotonnes!

Just recently, three major transactions were concluded in North America to this effect. General Motors has reached an agreement with a Canadian mining company, Nouveau Monde Graphite, to supply some 18,000 metric tons of material to manufacture active anodes made mainly of graphite. South Korean battery manufacturer SK On (whose customers include Ford, Hyundai and VW) has signed an agreement with Westwater Resources of Colorado for 34,000 metric tons of graphite for its North American operations. Finally, Panasonic Energy has signed an agreement with an Australian miner to obtain some 10,000 tonnes of graphite for its own operations. Among Canadian miners, we find the Matawinie mine of the Nouveau Monde group, whose plants are located in Bécancour, Québec.