Graphite firms integrate European battery supply chain

  • Market: Agriculture, Metals
  • 09/24/20

Graphite mining firms are developing an integrated supply chain in Europe, in response to rising demand from electric vehicle (EV) manufacturers and EU concerns about critical mineral supply.

Much of the focus in the EV market remains on the lithium supply chain, but graphite is also significant for battery production. Historically, around 70pc has been mined in China, and close to 100pc of the anode precursor material used in lithium-ion batteries is processed there. China became a net importer of graphite in 2019, with the opening of Australia-based Syrah Resources' Balama mine in Mozambique in the second half of the year.

Natural graphite is produced in China and Africa at lower cost with higher energy capacity for batteries, while synthetic graphite produced elsewhere has higher production costs and lower capacity, but a longer cycle life. Producers of EV materials tend to use a blend of the two. Flake concentrate is processed into 99.95pc high-purity spherical graphite and fines suitable for battery manufacturing.

As EV sales continue to accelerate outside China, the world's largest market, demand for graphite supply outside of China is also increasing. The production of 1GWh of lithium-ion battery capacity requires 400t of graphite. Global natural graphite production amounts to around 750,000 t/yr, according to mine developer Northern Graphite, while long-term demand is expected to exceed supply. Chinese state-owned metals trading firm MinMetals forecasts a large natural graphite deficit in 2025.

Graphite mining developers are looking to reduce reliance on China, building plants in Europe to integrate the supply chain from mining through to anode production. Automotive manufacturers prefer to have suppliers in geographical proximity to meet just-in-time deliveries, which is driving the construction of large-scale lithium-ion EV battery plants in Europe. Locating anode plants in Europe further localises the supply chain.

The EU kept graphite on a critical raw materials list updated earlier this month, reflecting its importance in EV battery production. The EU imports 98pc of the graphite it uses, with 47pc imported from China, compared with a combined 10pc from Norway and Romania.

Europe's EV registrations approached 400,000 in January-June, up by 61.5pc on the year, data from the European Automobile Manufacturers' Association (ACEA) show, while petrol and diesel car registrations dropped by more than 45pc.

Plans to add 557 GWh/yr of battery manufacturing capacity in Europe by 2024 will require an additional 450,000 t/yr of anode material, according to Australia-based mining company Mineral Commodities.

Mineral Commodities is building an active anode material plant in Norway to supply European battery plants. The facility will initially produce 10,000 t/yr of coated spherical graphite and fines from flake supplied by its Skaland mine in Norway from 2023. It plans to add two 20,000 t/yr modules to process concentrate from its Munglinup mine in Australia when it begins output in 2024.

The plant will operate an alternative process to the typical hydrofluoric acid purification used in graphite refining, which has deterred production outside China because of its environmental impact.

Australia-based Talga Resources, which is focused on European graphite projects, is building a 19,000 t/yr coated anode plant in Sweden to supply the European EV manufacturing chain from 2023. The plant will process flake from the company's Vittangi mine in Sweden, which will produce 22,000 t/yr from 2021. Talga has revised up its resource estimate in response to increasing demand for graphite in batteries, with Europe the fastest-growing market, the company said.

Norwegian silicon and carbon producer Elkem is building a pilot plant to produce anode materials that is scheduled for completion in early 2021. The pilot will evaluate the viability of its large-scale plant project, Northern Recharge.

Graphite producers outside Europe are also targeting the market. Syrah Resources is assessing the feasibility of producing 10,000 t/yr of anode material at its plant in the US and scaling up to 40,000 t/yr. Syrah cites Europe as well as the US in its plans to provide an alternative to the Asian supply chain.

Australia-based EcoGraf is planning to become fully integrated, with its Epanko graphite mine in Tanzania due to produce 60,000 t/yr of flake, and an anode plant in Australia planned to start production at 5,000 t/yr, scaling up to 20,000 t/yr by 2022. EcoGraf said it is positioning to respond to the investment in European battery capacity, with the EU having committed €3.2bn to support supply chain development.

EcoGraf has qualified high-purity fines with European customers and signed a 10-year agreement with Germany's Thyssenkrupp Materials Trading. The agreement covers the sale of 50pc of planned output of purified spherical graphite and by-product fines from the plant. In the longer term, EcoGraf plans additional processing facilities in Europe and North America.

Demand for graphite anode material t

Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News

New Asean flat steel mills to affect Turkish imports


03/18/24
News
03/18/24

New Asean flat steel mills to affect Turkish imports

London, 18 March (Argus) — Expanding steelmaking capacities in Malaysia and Indonesia, led by Eastern Steel and Dexin Steel, this year will most likely reshape the Turkish import market going forward. China last year was Turkey's chief supplier of flat products, with volumes increasing as a result of the outbreak of the war in Ukraine in 2021 and as Chinese exports rose amid sluggish domestic demand. China could continue being a key source for Turkish buyers, but its share of the country's import market may be affected by new sellers. Towards the end of this year, Malaysia's Eastern Steel will bring on line 3.5mn t/yr of flats. The steelmaker aims to export about 2.2mn t/yr of hot-rolled coil (HRC) to foreign countries, with Turkey being a key market, according to a company source. Malaysia already benefits from a free trade agreement (FTA) with Turkey that makes steel product imports exempt from the 13-15pc customs duty. Similarly, Indonesia is in the process of finalising its own FTA with Turkey, with talks still ongoing. This makes Indonesian steelmaker Dexin Steel's project to open a new flat steel mill towards the end of this summer, with a rolling 4mn t/yr stainless and carbon flat products capacity, another potential duty-free source for Turkish buyers. The prospect of anti-dumping duties being introduced this year on Chinese, Indian, Russian and Japanese HRC also could help usher in greater interest and consumption of flat products from alternative suppliers. But the majority of buyers in Turkey operate with inward processing regime licences when purchasing imported HRC, which exempts them from any form of import duty, but with the caveat that they cannot use the material for domestic market consumption. If anti-dumping duties were to be introduced, Malaysian and possibly Indonesian coil could join Egyptian as sources for raw material for domestic market consumption. Egyptian HRC trades at a price premium to Chinese and other origins, subject to customs duties, which could imply a similar differential for Malaysia and Indonesia. "Malaysia will be key for Turkey's steel supply chain going forward," a market participant said. A buyer that is active in the export market expressed its willingness to buy from Malaysia on a monthly basis once their capacities come on line. Turkey last year imported 150,000t of flat products from Asean countries, with 98,000t of this having come from Indonesia and the remaining 52,000t from Vietnam. Activity from the Asean region into Turkey could increase, supported by Malaysia, while Indonesia's role will depend on the outcome of FTA talks. It is interesting to note that Eastern Steel and Dexin Steel are joint venture projects by Chinese steelmakers aiming to expand capacities in foreign markets. This growing trend is underpinned by myriad trade restrictions across international markets on Chinese producers. Eastern Steel is partly owned by Beijing Jianlong Heavy Industry Group, while Dexin Steel is under the control of Shanghai Delong Iron and Steel Group. By Carlo Da Cas Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Tata Steel to close Port Talbot coke ovens


03/18/24
News
03/18/24

Tata Steel to close Port Talbot coke ovens

London, 18 March (Argus) — Tata Steel will close its ageing Port Talbot coke ovens this week. The ovens are old, and Tata had instructed unions that they would probably have to close promptly even without its decarbonisation drive . The Synergy report drawn up for trade unions, which recommended keeping a blast furnace open alongside the hot strip mill, accepted the closure of the ovens. There are around 84 ovens at Port Talbot, and about a third of these have been working of late. Tata will increase coke imports to offset the closure of the ovens, the company said. The Unite union is balloting its members over industrial action because of the closure of the mill's hot end, but the Community union has so far held off from balloting as it continues its consultations with Tata. The last coke produced at the site, indeed the last coke to be made in the UK, will be on 20 March. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Meranti Green Steel signs deal with German trader


03/18/24
News
03/18/24

Meranti Green Steel signs deal with German trader

London, 18 March (Argus) — Germany-based steel trader Interfer Edelstahl Handelsgesellschaft has signed a memorandum of understanding with Singapore-based Meranti Green Steel for the offtake of low-carbon hot-rolled coil for the European market. Meranti is in the process of building an electric arc furnace-based steel plant in Thailand, which from 2028 will produce 2-3mn t/yr of HRC, fed by continuously cast slab. Interfer and its joint venture partner Belmont & Knott, which trades flat steel into the EU and UK markets, are Meranti's first offtake partner for steel — the company has signed a number of MOU's with raw material suppliers, including Anglo American and Glencore. Meranti is eyeing the EU as a potential market for its products given the bloc's carbon border adjustment mechanism, which will see importers pay a tax depending on the carbon intensity of their steel. Meranti's HRC, which it plans will be fed with DRI and 10-20pc green hydrogen from 2028 and leverage on renewable energy in its steel making processes, will have a carbon intensity of less than 600kg/t, compared to the global average intensity of around 2t at present, the company said. It intends to ramp up its usage of green hydrogen as availability increases and cost falls, culminating in a minimal carbon footprint by 2040, when it targets using up to 90pc of green hydrogen. Meranti has agreed to collaborate with Green Steel of WA on the production of DRI in Western Australia, which will feed its Thai mill. By Colin Richardson Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Japan's JFE Shoji eyes stake in metal firm Arfin India


03/18/24
News
03/18/24

Japan's JFE Shoji eyes stake in metal firm Arfin India

Tokyo, 18 March (Argus) — JFE Shoji, a Japanese trading house that focuses on steel products and their feedstock, today agreed to acquire a stake in Indian aluminium goods and ferro-alloy manufacturer Arfin India. JFE Shoji did not disclose the size of the stake or investment amount. Arfin India is a major producer of aluminium deoxidizers made from recycled scraps. Aluminium deoxidizers are used to remove oxygen during the steelmaking process. Arfin India has a production capacity of 20,000 t/yr for aluminium deoxidizers and 21,000 t/yr for aluminium alloy ingots. It also produces other products like aluminium wire rods and ferro-titanium. JFE Shoji has decided to buy a stake in Arfin India in anticipation of growing demand for recycled aluminium deoxidizers in India, as well as Asean member countries. Recycled aluminium deoxidizers require less energy to generate and does not emit as much CO2 emissions compared with the output process for conventional feedstock like bauxite. JFE Shoji sees continuous growth in steel manufacturing in India, citing accelerating infrastructure development. It aims to sell recycled aluminium deoxidizers in India and Asean countries but does not plan to import them into Japan. JFE Shoji previously acquired US steel frame manufacturer California Expanded Metals Products. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.