The EV Battery Market Could Be Valued at About $133.46 Billion by 2027…This Growth Could Stimulate Graphite Demand(1)
Gratomic Inc. (TSXV:GRAT)(OTCQB:CBULF) is a Diamond in the Rough That Could Help This Accelerating Market
At the moment, the electric vehicle market shows no signs of slowing. In fact, the EV battery market alone could reach a potential valuation of $133.46 billion over the next seven years(1). Additionally, according to CNBC, the world could see approximately 125 million EVs on the road by 2030(3). However, for this growth to continue, and keep up with the demand, graphite appears to be a crucial necessity.(2) Why?
Such dependence on this mineral is why the USGS has included graphite on its list of 35 minerals and metals considered critical to the United States.(5) “USGS also sees a major spike in U.S. demand for graphite when Tesla Motor’s Gigafactory, an enormous lithium-ion battery facility being constructed in Nevada, is fully operational.”(6)
Gratomic Inc. (TSXV:GRAT)(OTCQB:CBULF) Technical Indicators Appear Strong
In recent weeks, shares of GRAT broke from its multi-month consolidation pattern, testing a recent high of about 26 cents from a low of about 14 cents(18). With a good deal of excitement in the electric vehicle space and increased demand for graphite, the stock has the potential to move higher, near-term. If the stock can break above double top resistance dating back to early 2018, it could potentially rally to higher highs.
In addition, the stock is also displaying bullish indicators including its 20 Day Moving Average, 20 – 50 Day MACD Oscillator, 20 – 100 Day MACD Oscillator, 20 – 200 Day MACD Oscillator, 50 Day Moving Average, 50 – 100 Day MACD Oscillator, 50 – 150 Day MACD Oscillator, 50 – 200 Day MACD Oscillator, 100 Day Moving Average, 150 Day Moving Average, 200 Day Moving Average, and 100 – 200 Day MACD Oscillator.
Demand for Graphite Has the Potential to Substantially Increase
According to a new study from the Boston Consulting Group, by 2025, EVs could account for a third of all auto sales.(9) By 2030, EVs could also surpass internal combustion engine vehicles with a market share of 51%.(9)
The promotion of EVs and clean energy from governments across the world may be a reason why.
- In the U.S., California Gov. Gavin Newsom claims to have just signed an executive order that will ban the sale of gas-powered passenger cars in the state starting in 2035.(10)
- In Europe, “Automakers need to sell more electric vehicles after EU lawmakers in December 2018 ordered them to cut CO2 emissions by approximately 40 percent between 2007 and 2021, and then by a further of an estimated 38 percent by 2030, or face fines.”(11)
- China just extended its subsidies for EVs. This could potentially drive growth further. According to a McKinsey report, EV market share in China is expected to grow from around 11% to approximately 14% by 2022. More than approximately 1.2 million EVs were sold in the country just in 2019.(12)
According to UBS, one of six cars sold could be electric by 2025.(13)
However, for this to happen, the world will need to get a hold of more graphite supply because of graphite’s strong electric and thermal conductivity properties.
Global graphite consumption and demand was already appearing to increase earlier this decade. In 2016, approximately 2.45 million tons of synthetic and natural graphite was consumed. However, by 2028, this figure could potentially reach approximately 4.5 million tons.(7)
In addition, according to Gratomic Inc.
- “Benchmark estimates that the amount of graphite needed for anode material in lithium ion batteries will rocket to 1.75 million metric tons by 2028, a nine fold increase over 2017 levels.”(14)
- “The global lithium-ion battery industry is expected to grow at a CAGR of approximately 16.4% from 2020 to 2025, reaching an estimated USD $94.4 billion by 2025 from $44.2 billion in 2020. Growth is believed to be driven not only by the need for plug-in electric vehicles and hybrids, but grid storage applications for which the dominant technology is lithium-ion.”(15)
That’s where Gratomic Inc. (TSXV:GRAT)(OTCQB:CBULF) Comes into Play
Gratomic is a resource exploration and development company focused on bringing the Nambia-based Aukam Graphite Project back into production.
Around five surface stockpiles from the historical mining occurred on the property. Approximately 73 composite samples were also taken from the lower three stockpiles, assayed and averaged 42% Carbon as graphite (Cg).(16)
At the moment, GRAT’s processing plant is nearing completion, with final construction aiming to occur in 2021. Commissioning is also planned for early 2021.
In addition, the custom engineered equipment arrived ahead of schedule from China in Walvis Bay Port, Namibia on August 26, 2020 and was trucked to the Aukam Graphite Property on October 15, 2020.(16)
Gratomic’s other graphite mining facility is the Buckingham Graphite Property. This property covers around 480 hectares in eight claim blocks and is located 7 kilometres northwest of Buckingham, Quebec, Canada. Gravel roads lead directly to the property and bush roads provide access to the interior.(16)
The Buckingham property is located within the Central Metasedimentary Belt of the Grenville Geologic Province. It is underlain by paragneiss and marble, with associated pegmatite, and amphibolite. Graphite mineralization occurs in two main zones, the Case Zone and the Uncle Zone where it is disseminated in paragneis and marble as well as in veins and masses within pegmatite and skarn.(16)
Gratomic Inc. (TSXV:GRAT)(OTCQB:CBULF) Could Position Itself as a Graphite Leader in the EV Market
Gratomic recently submitted 243 kg of high purity graphite taken to be used as anode material in lithium-ion battery cells.
In doing so, the company has the potential to establish itself as a graphite leader whose supply could be suitable for the anode supply chain.
Strong Management, Strong Results – (TSXV:GRAT)(OTCQB:CBULF)
Gratomic (TSXV:GRAT)(OTCQB:CBULF) appears to have a strong management team. Strong, quality management is crucial for a company’s success, and something that successful companies almost always possess.
Arno Brand – CEO & President
Mr. Brand, is a Namibian entrepreneur with 14 years of experience working on major construction and mining projects in Africa. As an experienced commodity Trader/Broker with over a billion dollars in trades. Arno has been involved in numerous public transactions and company financings worth more than 200 million dollars. He has negotiated uranium off-take agreements on behalf of Soupamine with utilities providers around the world. Mr. Brand generated over 500 million dollars for shareholders in taking private companies public.
Rodger Roden – CFO
Mr. Roden, CPA CA, has more than 30 years of industry experience and has worked as Vice President of Finance/Chief Financial Officer with public and private companies in a broad range of industries including the mineral sector. His experience includes all aspects of corporate finance, mergers and acquisitions, IT implementations, tax, and business systems and process analyses and implementation.
Bill Johnstone – Legal Counsel & Corporate Secretary
Mr. Johnstone has been a partner at Gardiner Roberts LLP since February of 2005 practicing in the areas of securities and corporate law. He is the Practice Leader of the firm’s Securities Law Group. Mr. Johnstone has been practicing law for over thirty (30) years. He is also a director and/or officer of five other TSX Venture Exchange listed companies and three Canadian Securities Exchange listed companies.
Armando Farhate – C.O.O & Head of Graphite Marketing & Sales
Mr. Farhate’s prior experience in the planning, engineering, research & development, processing, sales, and marketing backed by experience with significant roles in Imerys & Nouveau Monde Graphite, make him the ideal candidate to fill the role as C.O.O & Head of Graphite Marketing & Sales. His knowledge and expertise will foster numerous opportunities for Gratomic, not only through Mr. Farhate’s experience, but through his extensive network within the graphite industry as well.
Karl Trudeau – Plant Consultant, Aukam Graphite Project
Mr. Trudeau possesses unique experience achieved through the operation of natural graphite facilities. He was previously Plant Director at Imerys & COO of Nouveau Monde Graphite. Karl also occupied the position of Vice President at Minera Planet, in Mexico, and was directly responsible for the implementation of a greenfield project. He has a degree in Industrial Management, supplemented with over 20 years of professional experience in various roles within the mining industry.
Glenda Green – Communications & Marketing
Glenda has a background in marketing, entrepreneurship, management, team development, sales coaching, and training. She is experienced in social media marketing, website management, and custom content creation. Glenda has experience in a managerial role with BMO and in Communications & Marketing roles in the Oil and Gas industry as well as the junior mining sector. Green possesses a Degree in Bachelor of Business Administration from Mount Royal University.
Walter Luke PMP – Director
Mr. Luke is certified in professional project management with over 30 years of global experience directing large projects for many notable companies. His ventures have taken him to over 40 countries and has brought international recognition to numerous business developments worldwide. Walter will be leading the charge to ensure that compliance and corporate governance are effectively achieved.
Steven Gray – Director
Mr. Gray is a geologist registered with the Association of Professional Geoscientists of Ontario, with more than 28 years’ experience. He is Director and Managing Partner for a private mining company operating in Arizona, Director for a publicly traded Canadian based venture capital firm, and recently served as Vice President for a publicly traded minerals company. Mr. Gray provides consulting services related to underground and open-pit mine planning, scoping and feasibility studies in Canada and abroad.
Alex Helmel – Director
Mr. Helmel is an independent management consultant, possessing specific expertise working with early-stage venture companies within the Canadian Capital Markets. Alex focuses on private to public market transitions, corporate governance, the development of senior management teams, and corporate growth strategies.
Dr. Ian Flint, Mining & Processing Engineer – Advisor
With more than 25 years’ experience in the graphite industry, including more recent work in the growing field of graphene manufacture and commercialization, Dr. Flint’s experience includes process design, test work, pilot plants, equipment design, physical processing and materials development. He has worked as metallurgist, and/or director of more than 30 graphite/graphene projects worldwide. Dr. Flint holds a Ph.D. in mining and mineral processing engineering (2001) from the University of British Columbia and has more than 10 years of teaching mining engineering and graphite processing at Dalhousie University in Halifax.
Source 2: http://www.northerngraphite.com/about-graphite/graphite-growth-markets/lithium-ion-batteries/
Source 3: https://www.cnbc.com/2018/05/30/electric-vehicles-will-grow-from-3-million-to-125-million-by-2030-iea.html
Source 4: https://www.pheneovate.com/news-notes/ev-battery-growth-multiplies-domestic-spherical-graphite-needs
Source 5: https://www.miningnewsnorth.com/story/2020/10/29/critical-minerals-alaska-2020/usgs-sorts-critical-mineral-hierarchy/6486.html
Source 6: https://www.miningnewsnorth.com/page/ev-batteries-to-drive-9x-graphite-growth/5754.html
Source 7: https://gratomic.ca/investors/
Source 8: https://www.marketsandmarkets.com/PressReleases/graphite.asp
Source 9: https://www.autonews.com/mobility-report/ev-sales-growing-faster-expected
Source 10: https://www.gov.ca.gov/2020/09/23/governor-newsom-announces-california-will-phase-out-gasoline-powered-cars-drastically-reduce-demand-for-fossil-fuel-in-californias-fight-against-climate-change/
Source 11: https://www.barrons.com/press-release/these-are-the-top-catalysts-that-could-drive-another-lithium-market-boom-01605104121?tesla=y&tesla=y
Source 12: https://www.mckinsey.com/industries/automotive-and-assembly/our-insights/electric-mobility-after-the-crisis-why-an-auto-slowdown-wont-hurt-ev-demand
Source 13: https://www.bloomberg.com/news/articles/2017-11-28/rise-of-electric-cars-quickens-pace-to-tesla-s-benefit
Source 14: https://www.miningnewsnorth.com/story/2019/06/01/critical-minerals/ev-batteries-to-drive-9x-graphite-growth/5754.html
Source 15: https://www.aheadoftheherd.com/Newsletter/2020/Americas-graphite-vulnerability.htm
Source 16: https://gratomic.ca
Source 17: https://apnews.com/press-release/accesswire/business-technology-ontario-products-and-services-western-europe-06bcbeb78d6cd311f51f253d14986fba
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