Mars_2050
08 Aug 2016
Battery grade graphite shortage [link]
Mars_2050
08 Aug 2016
Graphite hype Kibaran to supply graphite to lithium battery industry after signing binding agreement with Japanese trader Sojitz8. August 2016 Kibaran Resources Limited (ASX: KNL) is pleased to announce that it has signed a binding exclusivity agreement with Japanese commodities trading giant Sojitz Corporation for the supply of graphite concentrate produced at its Epanko project in Tanzania.100% of Epanko Graphite Project's production now covered by agreementsUnder the agreement, Kibaran will be the sole supplier of Tanzanian graphite to Sojitz for distribution into markets including Japan, Korea and Taiwan. Sojitz is in turn a major supplier of raw material and products to the rapidly growing lithium battery industry. The initial term of the agreement is five years.The agreement provides the framework for sales of a minimum of 14,000 tonnes per year of natural flake graphite products subject to terms and conditions. Under the existing design, the plant will be capable of producing 44,000 tonnes a year of flake graphite concentrate.Kibaran already has binding agreements for 30,000 tonnes including 20,000 tonnes with German industrial giant ThyssenKrupp.Kibaran Managing Director Andrew Spinks said the Company's relationship with Sojitz would also provide a platform to increase production capacity at Epanko as market demand increases for battery grade graphite.The execution of the agreement follows the completion of extensive due diligence by Sojitz, including a global review of potential graphite suppliers to meet the increasing demand from the lithium battery industry.The due diligence on Epanko focussed heavily on analysis of Epanko graphite quality, including extensive testwork by end users.The Sojitz agreement provides an avenue for long-term sales of Epanko graphite into the fast-growing lithium-ion battery markets of Japan and Korea.Sojitz will also market Epanko graphite for use in a range of key applications in Japan, Korea, Taiwan, China and the US.As one of the largest graphite traders in Asia and a leading trader of lithium compounds in the Japanese and Korean markets, Sojitz has an in-depth understanding of the lithium battery market.Mr Spinks said Kibaran had partnered with the leading supplier of commodities to the lithium battery industry. Kibaran is proud to have yet another 'blue chip' partner in Sojitz Corporation and is expecting to formalise further strategic alliances to tie down the remaining major supply portals outside of China."Kibaran is now studying the potential to increase Epanko's production capacity based on forecast growth in lithium battery demand," Mr Spinks said."Graphite demand is forecast to treble on the back of the lithium battery demand and Kibaran's relationship with Sojitz and the ability to expand Epanko's capacity means it will be ideally positioned to capitalise on this opportunity."Kibaran is also advancing its plan to produce battery-grade graphite and other value-adding strategies via the development of a downstream processing plant (see Figure 1).Sojitz also intends to use its network to play a role in developing the downstream battery-grade graphite processing plant.SOJITZ CORPORATION BACKGROUND Sojitz is one of Japan's leading trading companies with net sales of US$3.4billion, net assets of US$1.9billion and a market capitalisation of US$1.4 billion. With over 80 worldwide offices and over 15,000 group employees worldwide, Sojitz has a substantial global presence.Sojitz is listed on the Tokyo Stock Exchange.
Mars_2050
08 Aug 2016
India - Graphite critical mineral Stratmin - Tirupati India JVIndia to run short of high-tech minerals August 5, 2016 [link] will be woefully short of critical minerals necessary for developing clean-energy applications, infrastructure for its solar mission and for manufacturing high-technology products in the future. The country will be heavily dependent on China in the coming years to source these materials for its manufacturing sector, says a report commissioned by the Department of Science and Technology.The study, conducted by the think-tank Council on Energy Environment and Water, identifies 12 minerals out of 49 that were evaluated as ‘most critical’ for India’s manufacturing sector by 2030. These are beryllium, chromium, germanium, limestone, niobium, GRAPHITE, rare earths, rhenium, strontium, tantalum and zirconium. Other minerals like limestone and graphite, while currently abundantly available in India, are deemed ‘critical’ because extractable resources could be scarce in the future....
Mars_2050
08 Aug 2016
Stratmins new graphite mine Taken from LSESome information and map location of the Vatomaina graphite mine Stratmins new project with Tirupati) in Madagascar, which is adjacent to DNI's. Of note it's closer to the port compared to Lohorano (about half way).Page 36[link] discussed at Section 6 above, initial exploration works have been undertaken at the Vatomaina historical mining area by Indian company Tirupati Carbons (‘Tirupati’
. They have conducted limited surface chip and panel sampling of existing cutbacks along the known mineralised trend. The project comprises a single mining permit located contiguous to the south of the Vohitsara project area. The location of Vatomaina with respect to the Vohitsara Permit is shown in Figure 12 below. During 2015, Tirupati announced on their website [link] an in-situ (NB: non-NI43-101 compliant) resource of “6.195 million tonnes of 5% average grade up to depth of 30m in 0.113km² area.”
Mars_2050
01 Aug 2016
£9m deal vs £2.5m Market cap Taken from LSEAs of June (see website), 75% of shares are held by private investors so quite a large free float. The majority of us PI's were in favour of the Bass deal which was approved last friday. Stratmin sold the Lohorano mine for a total A$16m ~£9m (cash, shares, royalties) to Bass and will continue to be a major shareholder. Stratmin will remain listed via the Tirupati India option see RNS. We will get the Vatomaina project with a working 12k plant which could be producing in 12 months.It's closer to port, better grade and includes Tirupati India's invaluable graphite expertise. More than 30 years in the graphite business. They in return get access to international capital markets. Bass first suspension was a speeding ticket +150% within 2 Hours!, currently suspended as they need to amend their prospectus hence the slight delay. But their approval is just a formality so we could hear back this week.Hope this helps
Mars_2050
30 Jul 2016
Re: Gigafactory - largest building on earth Interesting summary: Tesla's entire lithium graphite battery future depends on the Gigafactory [link]
Mars_2050
30 Jul 2016
STGR accepts £9m Bass deal Excellent news yesterday.Stratmin Global accepts Bass deal worth total A$16m ~£9m vs Market cap of only £2.5m. Slight delay with Bass AGM so their approval is still pending. But that should be just a formality.Stratmin will continue as a graphite company by taking over the Vatomaina graphite mine from Tirupati India.But low, Sell highGLA
Mars_2050
28 Jul 2016
8p in 12 months Post Bass dealOnce the mine is working both the tranche payments and the royalty will be unlocked as they are dependent on operational success. After that the years it takes to collect boils down to a simple number - a product of risk and interest rate.Once the mine is working there's also potential upside from BSM price gains.But you take the 3p today I'll live with that. Then add another 2.5-3p for the JV mine at Vatomaina and we have 5.5-6p Get my estimate of 2.5-3p for Vatomaina by taking the Loharano operating cost and doubling, and estimating 50% large flake 94% output, for 12ktpa. Bearing in mind Consolidated Resources (JV partner) run the offtakes for Loharano - I believe at least - should give them good access to sales market...On purely technicals de-rampers returning make me think there's also some still to close out here so my targets are still 3p first stop, 5-5.5p second stop and 8p in 12 months. Personal view only DYOR and GLA
Mars_2050
28 Jul 2016
Graphite supply Who Will Supply Graphite To The Fast-Growing Battery Industry?[link]
Mars_2050
27 Jul 2016
Gigafactory - largest building on earth ValueWalkNew Tesla Gigafactory Largest Building In World FootprintVW Staff on July 26, 2016 in Info-Graphs, TechnologyThese 9 Slides Put the New Tesla Gigafactory in Perspective by Jeff Desjardins, Visual CapitalistThis week, Tesla Motors officially unveils its massive new Gigafactory 1 at a grand opening event on July 29, 2016.[link] ultimate objective of the first Gigafactory is simple, but it is not for the faint of heart. Battery costs are the most expensive component of electric vehicles, and the multi-billion dollar Gigafactory aims to add scale, vertical integration, and other efficiencies together to bring lithium-ion battery costs down.Costs have already come down faster than most analysts have predicted, and the Gigafactory could be the final catalyst to get below the industry’s holy grail of $100 per kWh. Cheaper battery packs could make electric vehicles competitive with traditional gas-powered vehicles – and if that happens, it is a game-changer for the auto industry.It’s important to note that the Gigafactory is fairly modular by design, and construction is not completed in full yet. That said, here is what we know about the new Tesla Gigafactory and its possible impact.1. The Tesla Gigafactory 1 will be the largest building in the world by footprint.Tesla Motors, Tesla Gigafactory, GigafactoryThe Gigafactory will take up 5.8 million sq. ft of space, making it bigger than Boeing’s giant facility in Everett, WA. That’s roughly equivalent to 100 football fields.While the Gigafactory will certainly be one of the largest factories by volume, it will be hard to compete with Boeing for first place there. Boeing’s Everett facility, which is six stories high to accommodate the construction giant planes, has a total of 472 million cu. ft of volume.2. The scale will make production of lithium-ion batteries way cheaper.Tesla Motors, Tesla Gigafactory, GigafactoryTesla recently stated that its current battery cost is $190 per kWh for the Model S.The Gigafactory aims to reduce battery costs by 30%. Tesla expects this to happen through vertical integration, adding economies of scale, reducing waste, optimizing processes, and tidying up the supply chain.Tesla CEO Elon Musk has also stated that the company is changing the form factors of batteries away from the industry standard. Lithium-ion cells used for notebook computer batteries are typically produced in an 18650 cell format (18mm x 65mm), but Tesla will produce them in a 20700 cell format (20mm x 70mm).3. Tesla initially planned to produce 50 GWh of battery packs by 2020.Tesla Motors, Tesla Gigafactory, Gigafactory4. However, Tesla has now moved that target forward by two years.Tesla Motors, Tesla Gigafactory, GigafactoryNow, it’s anticipated that Tesla could triple battery production to meet this demand. This means it could produce up to 105 GWh of battery cells, and 150 GWh of completed battery packs. Musk says the current factory size will be sufficient for this ramp-up.5. This will require serious amounts of raw materials.Tesla Motors, Tesla Gigafactory, Gigafactory We previously showed the extraordinary amounts of materials needed to build a Tesla Model S. The batteries, which currently use an NCA cathode formulation, need lithium, graphite, cobalt, nickel, and other base metals that aren’t used as much in an internal combustion engine.This has created a significant rush for suppliers of these raw materials. It’s also something we are covering in our five-part Battery Series, in which we are looking at lithium-ion battery demand, as well as the materials that will need to be sourced as electric cars go mainstream.6. If Tesla hits its 2018 projection, it’s a serious milestone for EVs.Tesla Motors, Tesla Gigafactory, GigafactoryTesla aims to sell 500,000 cars in 2018. If it hits the mark,
Mars_2050
22 Jul 2016
Tipped on twitter - 6p #STGR chart looks primed for move up. Surely with news so close should be good over next couple weeks. Due rerate.@TopTradersADVFN #STGR Chartists out there, Looks to me like 3p+ coming doesnt it. Then towards 6p cash/shares offer#PROX Is the Next Tops Multi Bagger IMO but also take a look @ #STGR too. Offer values #STGR @ 6p a share in cash/Bass Shares,both cheap eh@Donks77 chart looking very strong mate. Spread wild but will narrow, the divestment looks solid #stgr#STGR Break / close above 2p for some serious upside
Mars_2050
20 Jul 2016
EU - Graphite supply critical European Commission - Press releaseEU takes legal action against export restrictions on Chinese raw materialsBrussels, 19 July 2016The European Union launched today a third case against China's restrictions on export of raw materials essential for European industries.Following the successful legal actions in 2012 and 2014 on similar measures, this time the EU is focusing on restrictions concerning graphite, cobalt, copper, lead, chromium, magnesia, talcum, tantalum, tin, antimony and indium."We cannot sit on our hands seeing our producers and consumers being hit by unfair trading practices. The past two WTO rulings on Chinese export restrictions have been crystal clear - these measures are against international trade rules. As we do not see China advancing to remove them all, we must take legal action," said EU Trade Commissioner Cecilia Malmström.China currently imposes a set of export restrictions, including export duties and export quotas that limit access to these products for companies outside China. These measures have distorted the market and favoured Chinese industry at the expense of companies and consumers in the EU, in violation of general WTO rules and also of China's specific commitments from the time of its accession to the WTO. Also, their alleged aim to support an environmentally friendly and sustainable production of raw materials could be achieved more effectively with other measures, without negative impact on trade.The formal consultations between the EU and China – the first step in the WTO dispute settlement - will be conducted in parallel to a similar procedure initiated by the US. In absence of a satisfactory solution within 60 days, the EU may request the WTO to set up a panel to rule on the compatibility of China's measures with WTO rules.BackgroundRaw materials subject to the case include graphite, cobalt, copper, lead, chromium, magnesia, talcum, tantalum, tin, antimony and indium. Some of them (in bold) are among the twenty raw materials identified in 2013 as critical to Europe’s economy and essential to maintaining and improving our quality of life.China’s total exports of these products are worth around €1.2 billion, one sixth of which comes into Europe. A first analysis suggests that removing the export duties imposed by China could allow an additional supply of these raw materials to the EU economy worth around €19 million, i.e. an increase of 9.2%. However, the real increase of China’s supplies to the EU is likely to be much higher if the other instruments that China is currently using to restrict its exports were also removed.Types of restrictionsChina applies export duties to various forms of antimony, chromium, cobalt, copper, graphite, lead, magnesite, magnesia, talc, tantalum, and tin. Quantitative restrictions, such as export quotas, are applied to antimony, indium, magnesia, talc, and tin.Raw materials concernedGraphiteGraphite is one of three pure forms of carbon and is used in a wide range of industry applications, in particular in refractory materials as well for lubricants, steelmaking, metal casting and brake linings.China is the world’s dominant producer accounting for two thirds of world supply. EU is dependent on imports for 95% of its consumption. Approximately half of EU imports of graphite come from China.CobaltCobalt is used in chemical compounds for a wide range of industrial applications. Rechargeable batteries consume the largest proportion of cobalt. The demand for cobalt is expected to increase due to the emerging use of cobalt in some rechargeable batteries for electric vehicle applications and biotech applications.Cobalt is mainly produced as a by-product from copper and nickel. Half of the mine production is done in DRC and there is hardly any production in the EU. China has limited reserves and mine production of cobalt but has secured many life-of-mine or long-term contracts with third countries' min
Mars_2050
20 Jul 2016
Gigafactory Panasonic ramps up hiring for battery cell manufacturing at 'Tesla Gigafactory 1' 20 July 2016[link]
Mars_2050
20 Jul 2016
Samsung $500m EV investment Samsung rumoured to invest half-a-billion in Chinese electric car companyAndrew Topf | 3 days ago Samsung Electronics is looking to take the plunge into electric vehicle (EV) technology with a sizable investment into BYD Co., the world's largest electric car manufacturer.The division of Samsung, one of the most important "chaebols", or conglomerates in South Korea, said investing in BYD, backed by Warren Buffett’s Berkshire Hathaway Inc., (NYSE:BRK.A), is expected to bolster the South Korean company's semiconductor business for cars. Samsung Electronics is the largest maker of cellular phones and memory chips in the world.Talks between the two companies have apparently been underway the last few days. Korea Economic Daily reported on Friday that Samsung Electronics is about to pull the trigger on a 3-billion yuan (US$450 million) investment in Shenzhen-based BYD for a 4% share of the company. However Samsung denies that report, saying that talks are still ongoing. BYD says the investment would most likely come in the form of a private placement.“It puts Samsung into the electric-vehicle subsystem supply chain for a key Chinese electric vehicle and battery manufacturer"According to Bloomberg the likely deal came about "…after [Samsung's] affiliate was among foreign battery makers left off a list of suppliers approved by China, where sales of electric vehicles are surging and the government has sped up construction of charging points. The talks with BYD also add to the global trend of technology companies and automakers collaborating as car buyers increasingly demand more advanced powertrains and features that improve connectivity and safety." Example of notable partnerships include the contributions of Korean battery manufacturer LG to the Chevy Bolt, and Panasonic's $1.6 billion investment in luxury EV car maker Tesla's $5-billion lithium-ion battery Gigafactory in Nevada.“It puts Samsung into the electric-vehicle subsystem supply chain for a key Chinese electric vehicle and battery manufacturer,” Bloomberg quotes Bill Russo, the managing director at Gao Feng Advisory Co., based in Shanghai. “BYD gets a technology innovation pipeline partner with a reputable brand.”China passed the United States last year as the largest market for electric vehicles.The news of a possible tie-up between Samsung Electronics and BYD comes amid another media report indicating that the group's construction division piled up at least $700 million in losses over the course of constructing one of the world's biggest iron ore mines -Roy Hill owned by Australian billionaire Gina Reinhart.The Wall Street Journal (subscription required) reported last Thursday that Samsung C&T Corp. had high hopes for taking advantage of the commodities boom when it embarked on its first foray into mining – having been involved in some high-profile megaprojects including the Burj Khalifa skyscraper in Dubai. Under terms of the $6-billion contract to build the mine, Samsung agreed to shoulder the risk for all cost over-runs and to pay penalties for not completing before the expected start of exports in August 2015. However according to WSJ, when the mine opened in December 2015, Samsung C&T "was embroiled in costly legal disputes with several subcontractors as well as Roy Hill."Costly mistakes included hiring a less-experienced, small Australian firm to build the $1.1-billion processing plant, which would later become insolvent; a months-long delay in acquiring necessary conveyor belt components; hiring 1,500 new workers to make up for lost time; and having to defend itself against a lawsuit from a subcontractor over up to AUD$90 million in payments. Samsung C&T also fought with Roy Hill over construction timelines, with Roy Hill saying the South Korean company slowed construction to save costs, even though it was penalized AUD$2 million a day for missing deadlines.
Mars_2050
10 Jul 2016
Graphite future What lies ahead?[link]
