Hello everyone. Welcome to the Smart Market Insights here on Kalkine TV. I’m Sage, and
today we will be shining some light on Australian housing sector.
The world is in dire need of a rapid energy transition in order to limit the rise in global
temperature. This transition cannot be driven without harnessing renewables like wind, solar,
tidal, geothermal energy. In addition to this, electric vehicles have also been playing a
significant role in curbing the emission levels. The incorporation of low-carbon emission technologies
would require the extraction of large quantities of minerals, which are used in their production.
Though new energy technologies use several minerals in different proportions, EV battery
minerals are among the most demanded ones.
Graphite is one such energy transition mineral that is extensively used as an anode in lithium-ion
batteries, eventually used to power EVs, electronic gadgets, and other portable devices. Apart
from this, graphite is traditionally used in the manufacturing of crucibles, foundries,
pencils, and more. Graphite is also used in the manufacturing of steel, glass, cement,
greases, brushes, brake lining, and more. Notably, natural graphite is found in two
commercial varieties—crystalline graphite and amorphous graphite. The quality of both
graphite types depends on their carbon content.
As per estimates made by the International Energy Agency, the world would require 25-times
more graphite by 2040 compared to its 2020 level, in order to drive sustainable development.
The EV sector would alone require 3,569 kilotons of graphite by 2040 relative to 140 kilotons
in 2020, recording a growth of more than 460 times. According to the records by the Government
of India, Ministry of Mines data, the global resources of graphite were believed to exceed
800 megatonne of recoverable reserves.
At the same time, the global reserves of graphite have been placed at 300 megatonne, among which
China accounted for 30% and Brazil accounted 24%. On production front, China is said to
be the leading graphite producer with a share of more than 60% followed by Mozambique, Brazil,
and India.
Let us now, quickly glance at the major players in the sector.
The Toronto Stock Exchange listed Leading Edge is a Canada-based company, engaged in
developing critical mineral assets in the European Union. The company is focussed at
the Woxna Graphite mine and processing plant in Sweden.
Australian Securities Exchange listed Syrah is an Australia-based graphite miner. The
company owns and operates the world's largest and lowest cost Balama graphite mine in Mozambique.
Australian Securities Exchange listed Triton is again an Australia-based miner, engaged
in the development of Mozambique's Ancuabe Graphite Project. In 2019, China’s Jigao
International Investment Development Company invested AU$19.5 million into Triton Minerals
to become a strategic partner.
To sum it up. The incorporation of green energy and low-carbon technologies has increased
the demand for various transition minerals including graphite. The demand for graphite
is anticipated to increase by 460 times by 2040. Hence, it will be interesting to keep
an eye on these stocks as well as the sector.
Well, that’s all for now. We will be back again with the exclusive Smart Market Insights
Show tomorrow. Till then, keep watching Kalkine TV for the latest market updates and related
insights. I’m Sage, signing off.