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ADU ReVIeW

Evolving the graphite supply chain

volution Energy Metals Ltd (EV1) man- that will be a second stage for us and in the na has more of a stranglehold on graphite
Eaging director Phil Hoskins has tempted near future you can look out for a binding than any of the others,” Hoskins said. “70-
investors with potential downstream col- term sheet for a downstream JV.” 80% of the raw material flake graphite sup-
laboration between the soon-to-be graphite YXGC is the cornerstone offtake partner ply comes out of China, 100% of the down-
miner and Chinese manufacturer Yichang in the Chilalo graphite mine in Tanzania af- stream processing is done in China.
Xincheng Graphite Co (YXGC). ter signing on for 40,000 tpa across three “You ask yourself, ‘why is graphite a
“These guys are looking to go down- years for more than half of planned produc- strategic critical mineral for all of these
stream with us in Europe,” Hoskins said at tion. Chilalo is heading towards FID with a countries?’ It’s very clear. The desperation
Africa Down Under. “To expand their busi- current mine life of 18 years and resource of stakes are increasing, we’re seeing funding
ness and take their technology overseas, 20mt @ 9.9% TGC. packages and funds being put in place all
Hoskins justified the company’s decision around the world with Western economies
to conduct further drilling at Chilalo this year trying to diversify supply chains away from
by pointing towards impending graphite China.”
deficits. EV1 began a $13 million placement in
“Benchmark Mineral Intelligence [is] talk- August to support FEED works and bulk
ing about a 650,000t deficit by 2025,” he product sampling at Chilalo. The project’s
said. “That’s 13 new mines that size of our recent DFS outlined a NPV of $US323 mil-
mine that will need to be brought into pro- lion and capex of $US87 million.
duction, just to maintain equilibrium.” “We’re one of the coarsest flake graphite
Graphite contributes to the bulk make-up projects in the world,” Hoskins said. “The
of an EV battery and represents the major- coarser the flake, the higher the price…
ity of its weight. Its demand for green en- that’s going to be driving high prices and
ergy infrastructure has the rest of the world high margins.
waking up to how little diversification there “We’re reaching a very exciting part of the
is in supply of the material. journey.”
“What a lot of people don’t know is that
Phil Hoskins compared to the other battery metals, Chi- – Fraser Palamara

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