Li-ion Battery Graphite Shortage in 2025? + Synthetic vs Natural Graphite

Northern Graphite CEO Hugues Jacquemin shares some valuable perspective on China's recent move to tighten export controls on graphite product that are crucial for manufacturing Lithium Ion Batteries. In addition, he explained the difference between natural flake graphite and synthetic graphite when it comes to battery performance.
**This video is SPONSORED by Northern Graphite*
Northern Graphite Website: www.northerngr...
Hugues Jacquemin LinkedIn: / huguesjacquemin
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DISCLAIMER: All of the content found in this video should NOT be regarded as financial advice. I am not a financial advisor, and this is NOT in any way a recommendation or offer to buy or sell securities. While the information in this video is believed to be accurate at the time of recording, no guarantees are being made about the accuracy of the information presented in the video. As of the recording of this video, I am NOT invested in Northern Graphite stock or securities, nor any other company mentioned in this video.

[@slowercuber7767]

I feel like I’ve learned something important. Thank you for this excellent video.

[@Cleanerwatt]

Awesome - I definitely learned a lot during this conversation as well!

[@lloydmanchester3589]

Great interview...Jacquemin is very knowledgable. No place to go but up with this company.

[@huguesj67]

Thank you 👍

[@gregehrmantraut3165]

Awesome interview for us science geeks, it's all in the details. Thanks Jon. Please seek out more experts in the industry, very useful knowledge for retail investors in the space.

[@huguesj67]

Thank you 🙏

[@Urgelt]

Very useful interview, Jonathan. Kudos!

[@Cleanerwatt]

Glad you enjoyed it! I learned a lot during this interview.

[@huguesj67]

Thank you 🙏

[@jasonwidegren3211]

Really appreciated the detailed comparison of synthetic and natural graphite.

[@georgepelton5645]

My thought as well. Very clear and informative explanation.

[@dannyames5089]

Thank you Cleanerwatt for bringing Hugues Jacquemin to the channel. On TSE it list as NGC, my search for it on NYSE shows NGPHF (Northern Graphite Co). Down over 53% YTD. That might change with these nebulous dynamic export controls & licensing restrictions starting. I wonder can this company eventually scale to mine enough graphite to replace what the Chinese supplies to the world if it receives the investment capital necessary? Would Tesla buy it?

[@dannyames5089]

FYI UPDATE 6-China, world's top graphite producer, tightens exports of key battery material 1:11 PM ET, 10/20/2023 - Reuters By Siyi Liu and Dominique Patton BEIJING, Oct 20 (Reuters) - China said on Friday it will require export permits for some graphite products to protect national security, springing a surprise with another bid to control critical mineral supply in response to challenges over its global manufacturing dominance. China is the world's top graphite producer and exporter. It also refines more than 90% of the world's graphite into the material that is used in virtually all EV battery anodes, which is the negatively charged portion of a battery. “This bold and unexpected move by China in graphite has taken us by surprise, arriving far sooner than anyone could have predicted," said Kien Huynh, chief commercial officer at Alkemy Capital Investments, which is focused on developing projects in the energy transition metals sector. Beijing requires the export permits at a time when many foreign governments are ratcheting up pressure on Chinese companies over their industrial practices. The European Union is weighing levying tariffs on Chinese-made EVs, arguing they unfairly benefit from subsidies. Also, the U.S. government earlier this week widened curbs on Chinese companies' access to semiconductors, including stopping sales of more advanced artificial intelligence chips made by Nvidia. China's graphite curbs are similar to those imposed since Aug. 1 for two chip-making metals, gallium and germanium. The restrictions have slashed exports of those metals recently and pushed up prices outside of the country. The action is intensifying efforts among miners outside China to bring graphite projects to fruition while efforts to find alternatives will also be ramped up. "What China is saying to the West with this decision is that we are not going to help you make electric cars, you have to find your own way to do that," Northern Graphite CEO Hugues Jacquemin said. China's commerce ministry said the move on graphite was "conducive to ensuring the security and stability of the global supply chain and industrial chain, and conducive to better safeguarding national security and interests". It added that it was not targeting any specific country. Top buyers of graphite from China include Japan, the United States, India and South Korea, according to Chinese customs data. Under the new restrictions, China will require as of Dec. 1 that exporters apply for permits to ship two types of graphite, including high-purity, high-hardness and high intensity synthetic graphite material, and natural flake graphite and its products. Three types of "highly sensitive" graphite items had already been under temporary controls, the commerce ministry said, and are included in the new list. Meanwhile, it dropped temporary controls on five less sensitive graphite items used in basic industries such as steel, metallurgy, and chemicals. With rising sales of electric vehicles, automakers are racing to lock in supplies from outside China, but shortages are looming. "With this new graphite export curb, South Korean firms which heavily rely on China for graphite imports would need to seek alternatives, such as mines from the United States or Australia, but it would likely increase the cost burden for many," said Kang Dong-jin, an analyst at Hyundai Motor Securities. South Korea’s trade ministry said a statement that it had held a meeting on Friday with battery and material makers on how to respond to the export curbs. "The South Korean government will closely communicate... to avoid production disruptions in the lithium-ion battery sector,” South Korea’s industry minister Ahn Duk-geun said. Japan's top government spokesperson Hirokazu Matsuno said on Friday the country plans to ask China about the "operational policies" of the new measures and will "take appropriate steps" if they violate World Trading Organization rules. Shares in China's new energy vehicle and battery makers rose after the announcement. IMPACT UNCLEAR Analysts said it was not clear how much impact the new measures on graphite will have in the short term. "This control is not a complete ban, and there has been no significant impact on any industry during the previous temporary control," said Ivan Lam, a senior analyst at Counterpoint Research. Prices for natural flake graphite were 3,950 yuan ($539.62) a metric ton this week, down 25.5% from the beginning of this year because of declining demand from the EV sector, according to consultancy Mysteel. "This action could set them on an upward trajectory internationally, while keeping domestic prices low for Chinese battery producers," said Tom Kavanagh, head of battery metals at commodity and energy pricing agency Argus. Still, exports are likely to rise ahead of Dec. 1, said Echo Ma, an analyst at Rystad Energy, especially to countries with established battery industries like Japan, South Korea and the United States. China has reduced natural graphite mining in recent years to protect the environment, instead ramping up synthetic graphite output since 2021. The synthetic form now accounts for 70% of China's output, according to Mysteel. ($1 = 7.3200 Chinese yuan renminbi) (Reporting by Siyi Liu, Amy Lv and Dominique Patton in Beijing, Brenda Goh in Shanghai, Heekyong Yang in Seoul, Nick Carey and Eric Onstad in London, Divya Rajagopal in Toronto; Editing by Christian Schmollinger, Veronica Brown and Jane Merriman)

[@huguesj67]

Tesla would buy it

[@tgdomnemo5052]

Great vid ! Fantastic "guest profeessor" providing REAL insight 🙏🏼🙂🖖🏻

[@spadjustersshubert2872]

Thanks!

[@Cleanerwatt]

Thanks for the support!

[@huguesj67]

Thank you 🙏

[@michelglemaud9554]

WE NEED ALL OF THE GRAPHITE IN THE WORLD. I FOLLOW THIS STOCK FOR MORE THEN 12 YEARS. THEY ARE THE LEADERS!!! IN NORTH AMERICA!!!

[@presangikahemamali5802]

We can supply graphite in sri lanka please call 0094760514640

[@eugeniustheodidactus8890]

*Processing is the hard part* ! Nouveau Monde Graphite _(Quebec)_ has been moving towards battery grade spherical graphite for years and they may soon have offtake agreements and might be selling final product within a couple years. That said.... according to my understanding as a previous investor .... they are apparently _many years ahead of Northern Graphite,_ ( who is at least 5 years from production ) with *Panasonic already testing NMG's final, anode grade spherical graphite.* You should interview NMG's CEO !

[@Cleanerwatt]

I will check them out.

[@arf1679]

Very interesting conversation, Jon!

[@Cleanerwatt]

Thanks! Hugues shared a lot of great Graphite info for sure.

[@huguesj67]

Thank you 🙏

[@georgepelton5645]

We need more North American supply of graphite. I hope Northern Graphite gets funding to start these projects ASAP.

[@spadjustersshubert2872]

Great job very informative video thank you for sharing this information

[@Cleanerwatt]

I am glad it was helpful!

[@huguesj67]

Thank you 🙏

[@sandmehlig]

I wonder what hurdles are going to take for Plant-derived Hard Carbon to come to market.

[@whitehelmetinhawaii1323]

Why does he say he is the only North American graphite mine when there is NMG in Canada who is actually mining and producing graphite and manufacturing anodes?

[@WalterBlochle]

Are we sure graphite for batteries is the future?

[@NAY2GAS]

Hi Jon!

[@jackcoats4146]

It could mean that oil companies get a slight reprieve to be able to do synthetic graphite for the outside of china market.

[@Cleanerwatt]

True.

[@anydaynow01]

Yep either mine the carbon in chunks or pump it out the ground to be purified. If we want to develop batteries to be as ubiquitous as energy from fossil fuels we will need every trick in the book.

[@jackcoats4146]

​@@anydaynow01oil companies will be with us for a looooong time. We still need their plastics and lubricants that is really hard to synthase without old dino farts 😱

[@RustyAtwood-s1p]

Does Alaska Rare Earth LLC have graphite?

[@klauszinser]

Is Graphite needed for LiFePO4. I think, yes. But, is there Graphite needed for other chemistries?

[@huguesj67]

All Li Ion batteries use Graphite in the Anode

[@klauszinser]

Have been looking where Graphite is coming from. The HS or Customs code for natural Graphite is 2504. On the Harvard map (I think links don't work) the global exporters (I don't think quantities processed within the country show up) we get China 48%, US 9%, Madagascar 7%, Germany 6%. As there was more in the past it seems China has got rid of some competitors because of their (maybe) low pricing. These quantities could be reactivated relatively easy.

[@knutthecute]

A good source is the USGS mineral commodity summaries; 2024 is now available

[@anydaynow01]

Graphene Manufacturing Group hopefully will start scaling up soon. Their tech has the most promise until solid state batteries becomes a thing.

[@vindigga6]

Novonix!

[@mogeking56]

Those damn cyber trucks no more number two pencils damn 🤬

[@TheZackrambo]

So this is why Tesla is trying to get silicone into the anode

[@Cleanerwatt]

Adding silicon to the anode is for performance reasons (faster charging and more energy density).

[@TheZackrambo]

Haha, true, if they can figure out the darn expansion problem. But limited supply of graphite could push them. Waiting for 4680 3.0!

[@huguesj67]

Use of Silicon will definitely grow over time, it’s a great way to improve battery performance and decrease cost by KWh

[@mebran1193]

I don't trust anyone that says "that's a good question"

[@huguesj67]

Sorry you feel that way

[@johnlucich5026]

IF YOU GAVE OEM’s AN ENIMA YOU WOULD GET UAW ! ?

[@MrFoxRobert]

👋👍

[@huguesj67]

Thank you

[@mogeking56]

Does it really matter seriously 😐

[@julieta203]

There is no shortage of Graphite and likely never will be. Its found in abundance and most of the miners cant even make money selling it.

[@gretco1]

Elon Musk for President of the United States of America

[@andrewkaiser7203]

No. He has enough power already.

[@davekozlowski1266]

​@@andrewkaiser7203what "power" does Elon have?

[@arf1679]

The dude launches missiles into space, owns a neurotechnology company that is developing an implantable brain-computer interface, controls one of the largest social media platforms in the world and has billions of dollars to fund whatever he desires.... Definitely not a lot of power 😂

[@SyntheticSpy]

@@arf1679​​⁠​⁠​⁠and has one of the most influential and leading companies in the EV/autonomy sector, a ridiculous amount of compute on hand, potentially a monopoly on labor with the bot, a huge chunk of the global grid storage supply, the only true global internet provider, and has countries jumping over themselves to work with him. Definitely a little bit of power

[@TechnoMonkeyFarm]

@@davekozlowski1266 225.5 billion power units.