Jon Hykawy - Quashing the Graphite Rumor Mill

Coal and Related Carbon Resources / Lignite, Graphite, Graphene, & Carbon Uses

Date posted: 10/01/14

Tesla Motors has been a hot topic in the graphite space since it announced plans to build a lithium-ion battery gigafactory back in March, and excitement about the company has only increased since it revealed on September 4 that the facility will be located in Nevada. For graphite companies that excitement has hinged on the assumption that Tesla will require a large amount of natural graphite. In terms of just how much, one oft-cited set of calculations comes from analyst Simon Moores, who reported that the plant will consume at least 28,000 tonnes of spherical graphite each year if operating at capacity. In turn, that will create a need for 93,000 tonnes of flake graphite if produced vis current standards which sees raw material wastage of up to 70 per cent. According to Moores, six new mines will need to come online to fill that demand.