{"id":39149,"date":"2023-12-13T07:25:29","date_gmt":"2023-12-13T07:25:29","guid":{"rendered":"https:\/\/www.innovationnewsnetwork.com\/?p=39149"},"modified":"2023-12-13T08:19:35","modified_gmt":"2023-12-13T08:19:35","slug":"why-the-battery-industry-must-secure-and-diversify-graphite-supply-chains","status":"publish","type":"post","link":"https:\/\/www.innovationnewsnetwork.com\/why-the-battery-industry-must-secure-and-diversify-graphite-supply-chains\/39149\/","title":{"rendered":"Why the battery industry must secure and diversify graphite supply chains"},"content":{"rendered":"

Ivan Williams, CEO of CarbonScape, discusses the scale of the challenge involved in scaling up graphite supply chains to meet exploding demand and why the lithium-ion battery industry needs to diversify its supply chains.<\/h2>\n

Batteries are integral in the transition to clean transport and energy systems. Not only would the electrification of vehicles be impossible without them, but their provision of grid-scale energy storage represents the backbone of a future powered by renewable energy.<\/p>\n

As a condensed carbon, graphite is an exceptional conductor of electricity with high energy density. This means it\u2019s perfect for batteries, comprising up to 50% of the weight of a lithium-ion battery. Hence, the security of supply for this component is a crucial part of global efforts to tackle climate change<\/a>.<\/p>\n

Like many of the other materials identified in the EU\u2019s Critical Raw Materials Act (and the U.S. Department of Energy\u2019s finalised critical materials list<\/a>), it underpins technological advancement and powers the global economy.<\/p>\n

Scale of the challenge<\/h3>\n

Graphite supply chains are already showing signs of major strain, with supply unable to match exploding demand, driven largely by the rapid uptake of electric vehicles (EVs), whose sales have increased by 35% year-on-year since 2016. Recent projections show a global deficit of 777,000 tonnes per year by 2030. This shortfall represents a significant challenge to countries\u2019 climate goals.<\/p>\n

In addition, of the types of graphite<\/a> currently on the market, there is a strong preference for synthetic graphite because of its higher performance than natural (mined) graphite.<\/p>\n

Meeting demand with just synthetic graphite would require countries to more than triple their existing chemical production capacity and make them fully dependent on high-emission processes that rely on fossil fuel-based feedstocks.<\/p>\n

Fulfilling demand with mined graphite, on the other hand, would require almost 100 new mines. Notably, each of these would cost citizens hundreds of millions of dollars and have enormous negative social and environmental impacts. Meeting demand for this form of graphite would also result in poorer quality batteries, risking the public\u2019s good faith in the reliability of clean technologies.<\/p>\n

It\u2019ll take a village to address this huge global challenge.<\/p>\n

Biographite as a solution<\/h3>\n

Alternative innovations will be needed to provide the kinds of solutions that can work with existing technologies and give us a tangible solution.<\/p>\n

One such solution is biographite. Produced from forestry by-products, such as wood chips, biographite is a new form of synthetic graphite. By using less than 5% of the forestry industry\u2019s annual by-products in Europe and North America, we know we can produce enough of it to meet half the total projected global demand for both EV and grid-scale batteries by 2030.<\/p>\n

Its production can also be scaled much faster than its traditional synthetic and natural counterparts. While it can take 12-18 years to commission a new mine in the EU and the US, a biographite plant, by comparison, can be permitted in under 12 months. Once operational, these plants can then produce biographite in mere hours, as opposed to the weeks and months currently required to produce anode-grade graphite.<\/p>\n

The need to diversify graphite supply chains<\/h3>\n

As well as the current demand shortfall, China currently dominates graphite supply chains, producing 98% of the final, processed material that is used to make battery anodes. Any disruption to production or exports there would pose a grave threat to countries\u2019 climate goals.<\/p>\n

\"graphite<\/p>\n

Concerningly, the Chinese government has already shown an inclination towards weaponising its dominance. For example, in July 2023, it imposed restrictions on the export of gallium and germanium, which are commonly used in semiconductors. Crucially, just last week, China upped the ante \u2013 announcing plans to restrict exports of (higher-grade) graphite from December<\/a>.<\/p>\n

The need to diversify this critical material\u2019s supply chain cannot be overstated. As technology and electrification continues to advance, so will graphite\u2019s importance. Localising production will play a key role in making this happen. Development of solutions like biographite, that come from local, sustainable feedstocks, will ensure secure supply chains in the face of China\u2019s dominance, while also shortening them.<\/p>\n

Outcome of the International Summit<\/h3>\n

These global challenges speak to the importance of the IEA\u2019s recent decision to create a new Energy Security and Critical Minerals Division, and to host the first-ever international summit on critical minerals and their role in clean energy transition at the end of September this year.<\/p>\n

\"graphite<\/p>\n

This Summit delivered six key actions for secure, sustainable, and responsible supply chains:<\/p>\n