The introduction of graphite export controls by China from December 1 highlights the potential for supply chain chaos from resource nationalism amid the energy transition, leading resources investors warned.
ASX-listed Syrah Resources has received a loan from the US Energy Department after striking graphite supply deals with Tesla and Ford.“Graphite is almost like the forgotten commodity in the battery revolution, it’s 40 per cent of a battery by weight, but only 10 per cent by value, so it’s overlooked as people get excited by lithium, copper, nickel and cobalt,” said Matt Griffin a portfolio manager at Maple-Brown Abbott.
Perth-based Talga Resources has jumped 8.1 per cent from 98¢ to $1.08, boasting of an early-stage battery anode technology and graphite tenement in Sweden.The US currently has no domestic production of natural graphite and no value-added processing capacity. Syrah’s Vidalia facility in Louisiana is expected to be the nation’s first processing facility for battery anode materials to supply Tesla and Ford, when it comes online by the December quarter.