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This overlooked material is key to the EV Boom

by , 21 April 2022
This overlooked material is key to the EV Boom
Electric vehicles (EVs) are becoming more popular.

Nearly every automaker is debuting at least one new EV model this year.

These models range from affordable sedans to luxury SUVs to super trucks.

By appealing to every type of car owner, EV growth should exceed most forecasts.

But this growth also comes with concerns over the supply of key battery materials.

The ones that dominate the headlines are nickel and cobalt.

These materials are part of the positive electrode of a battery.

But what's often overlooked are the materials that go into the negative electrode.
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Without this one metal, the EV revolution will not be possible!
The silvery-white metal has become crucial as an anode material used in state-of-the-art batteries. So, around 70% of lithium demand is expected to come from the EV battery segment alone.

And with predictions of a 17-fold increase in lithium demand from the likes of Bloomberg, there is no way current mine production can keep up with this potential demand.

So, it begs the question, how can you best position yourself now, to profit from lithium?
Go here to find out.

The black/grey material needed to power EV batteries…
Graphite!

Graphite is a soft black to steel-grey coloured mineral found in metamorphic and igneous rocks. It forms when carbon is subjected to heat and pressure in the Earth's crust and in the upper mantle.

Graphite has many industrial uses in lubricants, carbon brushes for electric motors, fire retardants, and steel making.

But it’s usage in lithium ion batteries has been booming thanks to the proliferation of cell phones, cameras, lap tops, power tools and other hand held devices that use batteries.

Graphite makes up 95% of the negative electrode of a battery. And it’s in short supply.

There also isn’t a better alternative for graphite in batteries, which makes us reliant on it for the foreseeable future.

In fact, each EV battery contain 20-30% graphite.

Graphite can either be natural or synthetic. But synthetic graphite is both costly and harmful to the environment.

That means the bulk of graphite needs to come from mining.

Currently China is the largest producer graphite. China accounted for 76% of the world’s natural graphite supply and 56% of synthetic graphite supply.

Economic tensions and supply chain issues mean supplies could be stretched.  Yet on the other hand, demand keeps on booming.

In fact, we’ve already started to rely more on synthetic graphite to meet demand.

Going forward, growth in graphite demand is forecast to average an 18% increase year on year until 2030, according to Benchmark Mineral Intelligence.

While, total graphite demand is expected to double by 2035.

Addressing the graphite shortage is key to keeping EV growth on track.

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This young EV Upstart could easily rival Tesla
It may just be the ‘apple of autos’, thanks to its strategic alliances. This EV manufacturer should hit the market on time in late 2022 and is well positioned to ramp production and profitability thanks to its approach to contract manufacturing. If production goes to plan, we could see its share price soar 222% in the next 18 months.


Go here to get the ticker, and full analysis on this EV maker and four other key renewable energy companies.

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What are the profit opportunities in graphite mining…

The graphite mining market is very niche. There are a number of small players involved in the mining of this key EV material.

One of them is Australian listed miner - Syrah Resources.

Syrah owns the world’s largest and lowest cost graphite mine known as the Balama graphite mine, located in Mozambique. It has a 50+ years expected mine life.

The mine has a two million ton a year plant capacity producing up to 350,000 tons annually of graphite concentrate.

Some of this graphite will eventually end up in batteries manufactured by
Tesla. In terms of the contract with Tesla, which is conditional, Syrah will supply 8,000 tons of graphite.

So in short, Syrah is perfectly positioned to bag huge profits as the demand for EVs (and subsequently graphite) soar.

Now South African investors can buy shares in Syrah. The company is available on the EasyEquities platform. You just have to head into your EasyEquities AUD account and you’ll find the share.

If you’re keen to invest, just remember, the company is a small-cap, which means there’ll be volatility in the share price.

It current trades at around 1.57 Australian dollars. Yet it reached a high of around 4.60 back in 2018. If the company hit its high again (which is possible due to the growing graphite market), there’s a potential 200% gain to be made.

Of course, there are risks. But if you’re willing to take the risk, a small investment could turn into a small fortune.

PS.  For some of
the best opportunities in renewable energy plays, get a copy of the latest South African Investor Special Climate Play report.


This overlooked material is key to the EV Boom
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