In a recent interview with Don Baxter, CEO of Applied Graphite Technologies Corporation (TSX-V:AGT), Baxter discussed the company's recent listing on the TSX Venture Exchange and its strategic positioning in the graphite industry.
With Baxter's extensive background in graphite mining dating back to the 1990s and his recognition of the growing demand for battery graphite, Applied Graphite Technology aims to become a fully integrated mine-to-battery company.
Baxter highlighted the significance of their graphite mining properties in Sri Lanka, emphasizing the high-quality graphite available with minimal processing requirements. He also underscored the increasing demand for graphite in electric vehicle batteries, signaling significant growth opportunities for the company in the EV market.
Baxter expressed confidence in Applied Graphite Technology's future prospects as it navigates the evolving landscape of the industry.
Proactive: Applied Graphite just started trading on the TSX Venture Exchange. While this marks a new listing, you're far from new to the industry. As a seasoned veteran of the graphite sector, let's take a moment to revisit the company and reintroduce Applied Graphite Technology to our audience.
DB: I've been involved in the (graphite) space for quite some time. In fact, I probably started working on battery graphite in 2012. I'm a mining engineer and in the 1990s worked at one of the few graphite mines that got up and running that decade. However, it wasn't until around 2012 when I ventured into the public domain, driven by the recognition of the increasing demand for battery graphite. Since then, my focus has been on developing processes for mass production to offer an alternative to Chinese suppliers.
Going public provides you with direct access to capital markets, enabling financing opportunities that could propel the company's growth forward?
I think the timing is finally right for graphite. A lot of graphite companies have come and gone, and a few have stuck around. With recent activities out of China, who controls 100% of the battery graphite, they've taken steps to limit the exports of various types of graphite. We own property in Sri Lanka, home to some of the best graphite mining properties. We’ve secured our position to become a fully integrated mine to battery company. Based on my experience, we can do this fairly rapidly with no learning curve.
Could you elaborate on the potential of the Sri Lanka asset you mentioned, particularly regarding the possibility of reaching up to 50,000 tonnes annually?
Our properties boast historical graphite workings. The graphite content in these areas is remarkably high, with a purity of 95% carbon. This inherent quality eliminates the need for costly primary processing plants, which could otherwise require investments upwards of $200 million. We aim to gradually scale up operations to meet the demands of original equipment manufacturers like Ford and GM, who are seeking suppliers capable of producing substantial volumes of battery graphite, ranging from 20,000 to 40,000 tonnes. This represents a crucial aspect of our strategy moving forward.
Could you explain the significance of graphite in electric vehicles, particularly in the batteries themselves?
The current use right now is about 800,000 tonnes per annum for all graphite, synthetic and natural, in batteries. Ultimately we need over 5 million tons of processed graphite for batteries.
Quotes have been edited for style and clarity