BlackEarth Minerals NL (ASX:BEM) ongoing test-work on graphite from the Maniry Project in Madagascar has further validated the product's potential for downstream processing and feed for rapidly expanding electric vehicle (EV) markets.
Refinement to the Stage 2 Pilot Plant design has focused on achieving even higher increases to concentrate grades with results demonstrating that more than 31% of BEM’s product can be produced at a Fixed Carbon (FC) level above 96.5%.
Results have also indicated that the designed flowsheet can achieve an average FC level of 96.5% for all large and jumbo flake product testing, grades that are attracting considerable price premiums in the graphite market.
“Potential to add significant value”
BlackEarth managing director Tom Revy said: “Following the very encouraging initial test results, we decided to focus on achieving even higher fixed carbon grades from our large and jumbo flake products which made up over 39% of our initial results.
“Premiums relating to very high-grade large flake material have the potential to add significant value to our Maniry Graphite Project.
“Our additional testing has resulted in an average fixed carbon level of 96.65% for all of our product, which is an outstanding result.
“These are great results and we are actively continuing this test program and looking forward to producing the final reports.”
Benefits of results achieved
The updated test four results indicate that concentrate can be produced to an exceptionally higher average FC level of 96.65% whilst retaining 31.65% of production at large and jumbo flake.
These are strong results and provide BlackEarth management with a variety of production options in a defined production cycle.
Whilst concentrate produced to a 94-95% FC level is highly desired for the EV and battery production market, product already processed to a level exceeding 96.5% FC is very rare in the world supply market and is expected to achieve a material pricing premium.
Demand growth and concentrate pricing
Recent reports have indicated a current worldwide shortage of jumbo flake graphite and a projected short term shortage of all concentrate grades over the next few years.
As a result, material price increases have occurred and are projected to continue to grow as the strong demand for concentrate exceeds supplies in the next few years.
Much of the demand for graphite relates to the ongoing growth and future demand for battery-powered and alternative energy, with the impact and explosion in demand for EV energy fuelling a faster level of growth with potential graphite shortages in the near future.
Notably, the impact of the building of ‘megafactories’ on the demand of graphite concentrate is projected to see demand for graphite anodes (used in the manufacture of lithium-ion batteries) to expand from around 293,000 tonnes in 2021 to around 4,835,000 tonnes by 2028.
Source: Benchmark Mineral Intelligence.
Looking forward
Further testing will continue for the remainder of April and May 2021 with a final report to be published thereafter.
Revy said: “The additional test results further demonstrate that, in our opinion, graphite from Madagascar will be in very high demand in the future as a key and major supplier of product to the electric vehicle and expanding alternative energy markets.”