Electric Vehicle Growth Could Drive Substantial Demand for Graphite

Over the next 10 years, the world could see up to 125 million electric vehicles on the road, says CNBC. However, for that to happen, we’ll need plenty of graphite supply. “This is because graphite serves as the anode in the lithium-ion batteries that power these EVs, not to mention the growing number of portable tools and electronics that use the same type of battery.” In addition, “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.” With EV demand picking up momentum, some of the top companies to keep an eye on include Gratomic Inc. (TSXV:GRAT) (OTCQB:CBULF), Mason Graphite Inc. (TSXV:LLG)(OTC:MGPHF), Talga Group Ltd. (OTC:TLGRF), and EV stocks like Tesla Inc. (NASDAQ:TSLA) and Nio Inc. (NYSE:NIO).

Gratomic Inc. (TSXV:GRAT)(OTCQB:CBULF) BREAKING NEWS: Gratomic Inc. is pleased to announce that is has applied to trade its graphite product M97 on a technology metals trading platform that will provide global institutional liquidity in a number of US proclaimed critical metals products include graphite. Product M97 is a grade of graphite that Gratomic is developing and testing as a suitable product for battery grade graphite. The metals exchange, which must remain unnamed until its own launch in the first quarter of 2021, has impeccable corporate governance, and regulatory credentials. The metals exchange is headquartered in the UK and boasts strategic support from a leading globally known securities trading platform full security to the underlying stock, in the manner of other international commodities exchanges.

Gratomic has been developing Product M97 from Graphite process in its pilot plant at its Aukam Property and its analysis to date indicates that the grade of graphite can be obtained once its Aukam processing plant is operating. Product M97 will not be listed for trading until the metals exchange is satisfied with the specifications of the product, has accepted Product M97 for trading and sufficient quantities of the product are available for trading.

“In the history of mining or commodity trading, commodities have almost always excelled in their availability for institutional buying on both Wall Street and Bay Street. This step to ultimately institutionalize graphite as a commodity demonstrates the Gratomic team’s ingenuity and advanced thinking,” commented Arno Brand, President & CEO of Gratomic Inc.

“Being ahead of the competition on all aspects of the business is in the DNA of the Gratomic team. Having graphite traded in a similar manner to copper and gold will give our shareholders more transparency about commercial processes. Our unique carbon coded, environmentally friendly graphite is intended to add a brand-new, clean commodity class to the graphite marketplace.” commented COO & Head of Graphite Marketing and Sales, Armando Farhate.

Gratomic wishes to emphasize that no Preliminary Economic Analysis (“PEA”), Preliminary Feasibility Study or Feasibility Study has been completed to support any level of production. In fact no mineral resources, let alone mineral reserves demonstrating economic viability and technical feasibility, have been delineated on the Aukam Property.

The Company appointed Dr. Ian Flint to complete a preliminary economic assessment (PEA) on the Aukam Processing plant. The study, its recommendations, and their subsequent implementation, will provide conclusions and recommendation at a PEA level of comfort relating to the scale up of the existing processing plant to a commercial scale processing facility that will provide the desired concentrate grades and production rates. A preliminary economic assessment is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized.

Gratomic wishes to emphasize that the supply of graphite to trade on the metals exchange referred to in this Press Release is conditional on Gratomic being able to bring the Aukam project into a production phase, and for any graphite being produced to meet certain technical and mineralization requirements. Gratomic continues to move its business towards production and as part of its business plan, expects to obtain a National Instrument 43-101 Standards of Disclosure for Mineral Projects technical report to help it ascertain the economics of the Aukam project.

Other related developments from around the markets include:

Mason Graphite Inc. (TSXV:LLG)(OTC:MGPHF)announced today that the Board of Directors of the Company has retained Laurentian Bank Securities Inc. as its Strategic Advisor to assist it in the evaluation of several potential strategic partners in the battery materials and mining industry to advance the Company’s development, as announced in a press release issued on October 28, 2020. A Special Committee of the Board has been formed to lead such discussions and has recommended the appointment of Laurentian Bank Securities Inc. to complete a strategic review. Mr. Gilles Gingras, Chairman of the Board of Mason Graphite, commented: “The adequate use of our cash flow over the past few months positions us favorably to study the opportunities available to us and the engagement of a strategic and financial advisor will help us to take the right decisions in the best interest of all shareholders.”

Talga Group Ltd. (OTC:TLGRF) advises it has successfully completed a A$25 million placement to sophisticated, professional and institutional investors at a price of A$1.45 per share. In addition to the Placement, the Company has also announced a Share Purchase Plan to raise up to A$10 million. The Placement, underwritten and managed by Morgan Stanley Australia Securities Limited, will result in the issue of 17,241,380 fully paid ordinary shares in Talga representing approximately 6.5% of Talga’s existing fully paid ordinary shares on issue immediately prior to the issue of the New Shares.

Tesla Inc. (NASDAQ:TSLA) reported, “In the third quarter, we produced just over 145,000 vehicles and delivered nearly 140,000 vehicles. In terms of days of sales, new vehicle inventory declined further in Q3 as we continue to improve our delivery efficiency. Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q3 earnings. Our delivery count should be viewed as slightly conservative, as we only count a car as delivered if it is transferred to the customer and all paperwork is correct. Final numbers could vary by up to 0.5% or more. Tesla vehicle deliveries represent only one measure of the company’s financial performance and should not be relied on as an indicator of quarterly financial results, which depend on a variety of factors, including the cost of sales, foreign exchange movements and mix of directly leased vehicles.”

Nio Inc. (NYSE:NIO) delivered 5,291 vehicles in November. Since October, the deliveries have held above 5,000 units with a fourth record high in a row and have doubled year-over-year for eight consecutive months since April. Notably, the deliveries included 1,518 EC6s, the company’s smart electric coupe SUV, up by 71.9% month-over-month. The EC6 has become an iconic model in the premium coupe SUV segment. Meanwhile, the Battery as a Service (BaaS) and battery upgrade plans have made car purchasing decisions easier, met users’ needs under multiple travel scenarios, and dramatically strengthened NIO’s competitiveness against ICE vehicles. BaaS subscription has gone up 35% of the total newly placed orders in November, demonstrating that the market has accepted this innovative business model. Furthermore, NIO has already launched the next round of production ramp-up. The estimation of the supply chain-wide production capacity will reach 7,500 units per month by next January, to address the delivery demands coming from the increasing number of orders. 

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Gratomic Inc. by a third party. We own ZERO shares of Gratomic Inc. Please click here for full disclaimer.

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