Electric vehicle manufacturers and battery makers have long been searching for the “Holy Grail” technology that could lower the cost of batteries while also extending their range. Government research labs, venture capital, startups, and large corporations have all toyed with different ways to get to the promised land.
But one material is emerging as the most promising innovation to date that could actually lead to cheap, long-range and fast-charging electric vehicles: graphite.
Graphite is a crystalline form of carbon. Within graphite is graphene, the world’s thinnest material that has some superlative properties. Graphene is incredibly durable and tough – 200 times stronger than steel – yet ultra-light weight. It is described as the world’s strongest and lightest material. It is also transparent, and conducts electricity substantially better than copper. Electrons can travel using graphene with virtually zero resistance and no heat loss, nearly qualifying it as a superconductor.
These virtues have singled it out as one of candidates most likely to take lithium-ion batteries to the next level, potentially leading to a breakthrough for electric vehicles. The thinking is that graphene will allow EVs to recharge must faster and go longer distances.
The only problem is that production of graphene is still low. Graphite itself is still cheap, but the trick is rendering out the graphene. Scientists were only able to separate out graphene in 2004, and researchers and entrepreneurs are still looking for ways to mass produce the material at low cost.
There lots of ideas to render out graphene – synthetically, electro-chemically, ultra-sound and microwaves are just a few.
Another method that shows promise is one using a bio-electro chemical industrial process, as in the one pioneered by a small company called BEGO, a company based in Hong Kong. BEGO’s process is low-impact, using naturally occurring microbes, along with salt electrolytes and electrodes to coax out graphene from graphite.
Unlike some competing approaches from other companies that typically use electro chemical or expensive synthetic processes, BEGO only operates in ambient temperatures, without heat, pressure or vacuum. As a result, BEGO argues that it can produce graphene in a safe, clean and inexpensive way.
The process is apparently so exciting that Global Li-Ion Graphite Corporation (CSE: LION; OTC: GBBGF) a pure-play graphite producer, decided to invest in BEGO. On October 25, LION announced a MOU to take a 16 percent stake in BEGO as well as a 49 percent stake in BEGO Energy Storage. BEGO will welcome the investment as it will provide a cash injection at a time when the company is trying to scale up.
LION is eager to accelerate the graphene production timeline, which will provide a jolt to the market for graphite – which LION produces. LION (CSE: LION; OTC: GBBGF) has graphite assets in Nevada and Madagascar, two locations that might seem random, but are strategically positioned to take advantage of mass EV manufacturing in Nevada (think Tesla) as well as the EV markets in China and India.
Graphite demand is expected to skyrocket as EVs gain traction – graphite demand could double in the coming years, according to UBS. For now, graphite prices remain low. The rush for materials and commodities needed for EV manufacturing has set off multiple bull runs. The price of lithium has skyrocketed as automakers scale up EV production. Cobalt has also seen a huge run up in prices. Graphite could also see similar price increases, but it is still early. Still, analysts see prices doubling or tripling from current levels.
The company (or companies) that figure out how to mass produce graphene could be at the center of the EV boom. Graphite producers, such as LION, will also see a bright future. If they succeed, the era of the electric vehicle could come a lot sooner than everyone thinks.
Other companies in the EV and lithium space:
Magna International (TSX:MG) (NYSE:MGA) is based in Aurora, Ontario. The global automotive supplier is gutsy and innovative--and definitely tuned to the obvious future--clean transportation. A great catalyst is its development of a combo electric/hydrogen vehicle--a fuel cell range-extended EV (FCREEV). It’s not going to produce them (for now, at least) but plans to use the model to show off its engineering and design prowess and produce elements of the electric drivetrain and contract manufacturing.
The company’s auto parts are distributed to heavyweights such as General Motors, Ford, Tesla, BMW, Toyota, Volkswagen and Chrysler. These huge deals provide a safe and steady profit stream for the company. It’s insightful, forward-thinking and smart value/low cost for shareholders.
Pretium Resources (NYSE:PVG) (TSX:PVG): This impressive Canadian company is engaged in the acquisition, exploration and development of precious metal resource properties in the Americas.. Additionally, construction and engineering activities at its top location continue to advance, and commercial production is targeted for this year.
The company’s modest market cap and stock price make it an appealing buy for investors. Pretium has an impressive portfolio and if you can catch the stock while the price is right, there could be huge.
eCobalt Solutions (TSX:ECS) is an established mineral exploration and development company based in Canada. It is a leader in the cobalt industry which is just as important as the lithium space in this energy revolution. Moreover, eCobalt prides itself on providing ethically sourced commodities. Its primary asset is in prime territory in Idaho.
Backed by strong leadership and a forward-thinking attitude, eCobalt is expecting feasibility study results in Q2. This is shaping up to be one of the most exciting belts in the US, and investors are definitely taking notice.
Fortune Minerals (TSX:FT) is another player in the cobalt space. Operating in Canada’s Northwest Territories, Fortune is eyeing status as a major Canadian producer of battery-grade cobalt chemicals--but it’s also got copper and gold bismuth upside. And it’s getting a boost from the government in terms of mining infrastructure.
Fortune’s modest market cap and low buy in make it a great stock for investors looking to get a piece of the electric vehicle revolution. The company’s value has increased significantly over the past year but it hasn’t yet reached its peak.
Nemaska Lithium Inc. (TSX:NMX) is a smart company which realizes that lithium will be used in nearly every major tech-leap in electric vehicles and consumer products using batteries the coming years. With a looming lithium supply squeeze coming, Nemaska has a unique technology and great government support. Nemaska explores and develops hard rock lithium mining properties and related processing in Quebec.
It’s small, and its shares are trading right now under $1, but it’s the government support you should look out for. Smart investors know a good thing when they see it and will be sure to follow Nemaska in the coming years.
Lithium Americas Corp. (TSX:LAC) is a resource company with a focus on lithium development. The company’s two large plays, the Cauchari-Olaroz project in Argentina – a joint venture with Sociedad Química y Minera de Chile - and the Lithium Nevada project in Nevada, are promising assets that will be sure to provide the company for many years to come.
The company’s impressive market cap, keen eye for investments, and excellent partners have certainly sparked the interest of investors. The company’s YTD stock value has increased by over 100% and shows no signs of slowing down.
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Forward-Looking Statements
This news release contains forward-looking information which is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ from those projected in the forward-looking statements. Forward looking statements in this release include that LION will complete its announced transaction to purchase the Nevada carbon exploration property; that graphite and graphene will have all applications and will be as much in demand in future as currently expected; that LION can fulfill all its obligations to exercise its Nevada property option; that LION’s Nevada property can achieve drilling and mining success for graphite; that LION will close its MOU to buy a Madagascar mining licenses; that production can go online in the near term in Madagascar; that LION will obtain drilling permits on its Nevada and Madagascar properties; that the graphite in Nevada and Madagascar when produced will be high quality suitable for the tech industry; and that LION will be able to carry out its business plans. These forward-looking statements are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Risks that could change or prevent these statements from coming to fruition include that the Company may not agree on the final terms for the Madagascar property, even if it agrees it may not be able to finance its acquisitions of Nevada or Madagascar, it may not get regulatory approval for these acquisitions, aspects or all of the properties’ development may not be successful, mining of the graphite may not be cost effective, LION may not raise sufficient funds to carry out its plans, changing costs for mining and processing; increased capital costs; the timing and content of upcoming work programs; geological interpretations and technological results based on current data that may change with more detailed information or testing; potential process methods and mineral recoveries assumptions based on limited test work with further test work may not be viable; additional high value mineral properties may not be available for LION to acquire, or LION may not be able to afford them; competitors may offer better technology than graphite technology for technology; the availability of labour, equipment and markets for the products produced; and despite the current expected viability of its projects, that the minerals cannot be economically mined on its properties, or that the required permits to build and operate the envisaged mines cannot be obtained. The forward-looking information contained herein is given as of the date hereof and the Company assumes no responsibility to update or revise such information to reflect new events or circumstances, except as required by law.
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