Flinders Resources Ltd (CVE:FDR) is finalizing a flow sheet for the production of high purity battery grade graphite at its Woxna facility in Sweden.
Working with its Chinese technology partner, Flinders is using processing technology that is based on the world's only commercially proven purification methods that are used in China to supply the current global demand for high purity graphite demand.
China is currently the only source for natural flake graphite processed to a quality suitable for battery cell manufacturers, said Flinders, which is using the Chinese technology to produce high purity graphite samples from concentrate produced at the Woxna mine in Sweden.
Demand for refractory grade graphite concentrate is in a lull, due to slow industrial markets, but Flinders believes it can offset this weakness in demand by producing value-added products, such as spherical high-purity battery grade graphite.
The market is growing for battery-grade uncoated spherical graphite with orders continuing to grow and volumes increasing which is driving prices upward in excess of 3% in the fourth quarter of 2015, Flinders reported.
Chinese electrical vehicle production increased to over 340,000 units last year, up nearly 140% in the fourth quarter alone, and this rapid growth in demand for batteries is expected to see sales of spherical graphite continue to grow, according to industry publication, “Benchmark Mineral Intelligence”.
“Benchmark Mineral Intelligence” estimates that some 90% of spherical graphite produced worldwide is used in energy storage and there is around 10 times more graphite than lithium required in a lithium ion battery. Battery manufacturers are seeking alternatives to expensive synthetic graphite and high purity natural flake spherical graphite is the preferred option, Flinders said.
Armed with this information, a marketing team from Flinders will be embarking this month on a global marketing tour, continuing on into next month, to demonstrate Woxna high purity spherical graphite samples, focusing on vehicle and battery cell manufacturers. The aim is to develop commercial relationships that will enable Flinders to permit and construct a high purity graphite plant adjacent to the existing operational concentration facility.
"Flinders is at the leading edge of an emerging industry that could be a game changer,” asserted Blair Way, president and chief executive officer of Flinders.
“With a fully permitted and operational mine and concentrator, we are able to produce graphite concentrate stock to feed into a proven commercial purification flow sheet. This is a significant milestone and key differentiator for Flinders in the graphite sector. No other public western world graphite company has established these key components necessary to be a supplier of battery grade graphite," he added.