The anode in Li ion batteries (LiBs") is made out of graphite. A graphite anode is one of the things that make it a LiB and there are no substitutes. LiBs are smaller, lighter and more powerful than traditional batteries and have a flat voltage profile meaning they provide almost full power until discharged. They also have no memory effect and a very low rate of discharge when not in use. Almost all portable consumer devices such as laptops, cell phones, MP3 players and cameras use Li ion batteries and they are now rapidly moving into power tools and bigger devices. This has lead to 20% annual growth in the LiB market.
This growth rate is expected to continue as hybrid electric vehicles (“HEV”), plug in electric vehicles (“PEV”) and all electric vehicles (“EV”), and grid storage applications, are huge markets that are all in their infancy. This has significant implications for the LiB and graphite markets. The batteries are large and the potential demand for graphite very significant. By weight, graphite is the largest component in LiBs and they contain 10-15 times more graphite than lithium. Because of losses in the manufacturing process, it actually takes over 30 times as much graphite to make the batteries.
There is up to 10 kgs of graphite in the average HEV and up to 70 kgs in an EV. There is far more in a Tesla Model S. Every million EVs, which is about 1% of the new car market, require in the order of 75,000 tonnes of natural graphite to make the batteries which represents a potential ten per cent increase in flake graphite demand. Because of the small size of the flake graphite market, even modest, conservative EV adoption rates will have a big effect on demand. LiB manufacturing capacity currently under construction would require flake graphite production to more than double by 2025.
The anode material used in LiBs, called spherical graphite ("SPG"), is manufactured from either flake graphite concentrates produced by graphite mines or from synthetic graphite. Only flake graphite which can be economically rounded and upgraded to 99.95% purity can be used. The manufacturing process includes micronization, rounding, purification and heat treatment. The process is expensive and wastes up to 70% of the flake graphite feed. As a result, uncoated spherical graphite currently sells for up to USD3,000/tonne or over three times the price of large flake graphite. Coated spherical graphite sells for USD$4,000 to $12,000 per tonne depending on quality and end market.
Almost all Li ion battery manufacturing currently takes place in China because of the ready availability of graphite, weak environmental standards and low costs. Secure, cost competitive and environmentally sustainable source of graphite are needed in the west.
Links:
How a Lithium Ion Battery Works
Articles:
All the Mines Tesla Needs to Build 20M Cars per Year
GM Considering Second US Battery Plant
Volkswagen's $29 billion Answer to Tesla
GM will answer Tesla with $20 billion EV push
China to build Europe's largest battery storage facility
China raises 2025 EV sales target to about 25 per cent
Daimler (Mercedes) committing $23 billion to EVs
SK considering additional investment in US battery plant
Tesla to Replace Lead Acid Starter Batteries
SK quadruples battery cell capacity
BLM advances $1 billion battery backed solar project in Nevada
Chinese batteries have lower energy density
SDGE unveils world's largest LiB energy storage facility
Posco to build anode material production facility
BMW secures raw material supply for its battery supply
Korean battery makers extend dominance in western auto industry
Biggest batteries coming soon to a grid near you
Europe set to race past US in battery manufacturing
Volkswagen Follows Tesla into Battery Business
India Looking at $40 billion Investment to Boost Battery Manufacturing Capacity
Volvo Picks CATL, LG Chem to Suppy Batteries for EVs
Tesla Model 3 Europe's Best Selling EV in its First Month
Megafactories on Automakers Minds - Volkswagon Needs Batteries
California Committs Billions to Advance EV Programs
SK Innovation Breaks Ground for First Cell Factory in US
A Behind the Scenes Take on Lithium ion Battery Prices
Korean EV Manufacturers Losing Market Share
Nikola Motor introduces heavy-duty hydrogen-electric truck
Plans for electric vehicle battery production in Europe
Billion euro package mobilizes German Battery Sector
World Bank unveils battery storage "game changer"
Battery manufacturers fight for foothold in Europe
Manufacturers reveal plans for China xEVs at Beijing Motor Show
Mazda to develop 12 volt lithium ion starter batteries
EV battery factory race heats up in Europe
The wait is over. The battery revolution is here
The Electric Vehicle Battery Industry in China
Toyota to market over 10 battery EV models in early 2020s
The Cobalt Cliff, Two Dire Warnings And A Musk Soliloquy
Miner's Revenge’ Is Coming With Electric Cars, Friedland Says
China Plans Graphite Megafactories to Meet Booming Demand for Battery Storage
Switching From Lithium-Ion Could Be Harder Than You Think
India about to embark on the most ambitious electric-car transformation in the world
South Korea plans Li-on push in face of China sanctions
Seoul charging ahead as carmakers go electric
Largest utility-scale battery plan for Massachusetts
VW Unveils $60 billion Battery Investment Plan
Giant Trucks and Buses Smash Electric Vehicle Records
Chinese Battery Production Could Leave Tesla in the Dust
Mercedes-Benz heads to China to build $740M EV battery factory
10 Battery Gigafactories Are Now in the Works and Elon Musk May Add 4 More
China Is About to Bury Elon Musk in Batteries
China's new energy vehicle sales surge in May
Honda to focus on PHEVs, EVs and fuel cell vehicles to electrify 2/3 of sales by 2030
Storage’s time ‘is coming’ as prices fall
Daimler begins construction on a $562 million lithium-ion battery factory in Germany
GM plans to launch 10 electric cars in China by 2020
LG Chem Launches Range of Residential Battery Systems in NA
Batteries at heart of UK electricity supply transformation
China's anti-Teslas: cheap models drive electric car boom
China threat sparks Hitachi’s four-fold graphite anode expansion
Tesla aims to sustain purity of car batteries, but can any company be sure?
Chinese Electric Car Battery Maker Charges for Global Market
35 States to Boost Electric Vehicle Charging Stations
Mercedes Benz Launches US Energy Storage Company
Daimler Adds to its Battery Capability
Chinese lead player Sacred Sun puts big money into lithium
Production of Lithium Starter Batteries to Commence
Firm attempts to usurp lead with LiFePO4 starter batteries
What Lies Ahead for Lithium Ion
ABB Sells First Order for 15-Second Bus Charging
US to create nationwide network of EV charging stations
Growing lithium trend threatens to usurp lead-acid
China receives 80% of industry investment as it triples lithium-ion production
Large lithium-ion battery demand will drive shortage as e-vehicles and ESS popularity grows
Lithium-air still a decade away from usurping lithium-ion
Graphite demand from lithium ion batteries to more than treble in 4 years
Global plug-in light vehicle sales increased by about 80% in 2015
NiMH 'will not feature in future EVs
Battery researcher partnered with Tesla to receive Governor-General’s Innovation Award
Lithium-ion production fell massively short
Chinese lead-acid firms embrace lithium with a vengeance
Here’s How Electric Cars Will Cause the Next Oil Crisis
US energy storage up 243% as utilities embrace lithium-ion battery power
Electric cars no longer held back by crappy, expensive batteries
China to install thousands of EV charging stations
Game Change: Tesla And GM Announce Affordable, Long-Range Electric Cars
Samsung Invests $2.51 Billion into Car Battery Business
Bosch lithium-ion battery to replace lead-acid
EV market to drive lithium-ion battery prices down
The Nordic EV-stock surpasses 85.000 in Q3 of 2015
BMW i expanding Fast Charge program; 500 more fast chargers in US
Hyundai launching new brand of electrified vehicles: hybrid first, then PHEV and EV
BYD to raise $2.4billion to boost battery and EV growth
GM Announces Largest Lithium Battery Energy Storage Deal in its History
Global market for automotive Li-ion batteries to hit $30.6 billion in 2024; almost 4x 2015 market
GE Signs Largest Battery Storage Deal to Date
LG Chem Might Overtake EV Battery Leader Panasonic
LG Chem Secures EV Battery Deal
Daimler to Offer Energy Storage System
Largest North American LiB Transport Supply Contract
Google Joins the Next Generation Battery Race
Saft leads the way in lithium-ion energy storage for smart city and clean tech applications
Toyota wants hybrids to account for half of sales in Japan by next year
China Automaker BYD Sees Profits Jump On Stronger Electric Vehicle Demand
Virgin working on electric cars
A123 Systems introduces Li-ion 12V starter battery
Mercedes-Benz to introduce 10 plug-in hybrids by 2017
Tesla Faces Threat from Buffet Backed BYD
Renault Samsung jump-starts electric taxi market with EV
German battery giant to quadruple production to 5GWh by 2020
Apple has 'several hundred' employees working on Project Titan electric car
"German Gigafactory" Ground Broken On Europe's Soon-To-Be-Largest Battery Factory