Thanks to Electric Vehicles, the Graphite Market Could be Worth $21.6 Billion by 2027

Thanks in part to accelerating electric vehicle (EV) demand, the graphite market could be worth up to $21.6 billion by 2027 from $14.3 billion in 2019. However, that may only be the start. That’s because by 2030, the world could see 125 million EVs on the road, which means we’ll […]

Thanks in part to accelerating electric vehicle (EV) demand, the graphite market could be worth up to $21.6 billion by 2027 from $14.3 billion in 2019. However, that may only be the start. That’s because by 2030, the world could see 125 million EVs on the road, which means we’ll need a good deal of graphite, according to Mining News North. “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.” Some of the top companies that depend on strong graphite supply include Gratomic Inc. (TSXV:GRAT) (OTCQB:CBULF), Tesla Inc. (NASDAQ:TSLA), Apple Inc. (NASDAQ:AAPL), Panasonic Corporation (OTC:PCRFY), and Nio Inc. (NYSE:NIO).

Gratomic Inc. (TSXV:GRAT)(OTCQB:CBULF) BREAKING NEWS: Gratomic Inc. wishes to announce that it has upgraded its pre purchase agreement with technology company, TODAQ Star Program Phase 1 Corp., a subsidiary of TODAQ Holdings Inc., pursuant to the terms of a new agreement dated January 7, 2020 between the Company and TODAQ to provide battery grade graphite SG16 for the EV Battery Market. TODAQ is proposed to receive an aggregate of graphite valued at US$25,000,000 from Gratomic’s Aukam Graphite Project in Namibia over a 36-month period in exchange for a non-cash digital asset created by TODAQ as a medium for exchange and store of value known as a TODA note. The Supply Agreement fulfillment has been negotiated at an exchange rate of USD$0.30 per TDN note.

The Supply Agreement contemplates that Gratomic will deliver, to TODAQ, 5,000 tonnes of SG16 product valued at USD$25 million under the terms of the agreement, over a 36-month period. TODAQ will put in an initial order of 1,800 tonnes, valued at USD $9 million, in exchange for 30,000,000 TDN, over the first 90-day period of the contract. The original agreement with TODAQ announced in the Press Release dated October 17, 2019, and referred to in the Press Release dated May 25, 2020, provided that the first 1800 tonnes of product would be purchased on the basis of an exchange rate of USD$0.10 per TDN with the balance being purchased at the market rate for TDN.

The Supply Agreement now fixes the value of the TDN notes at USD$0.30 for the purchase of the entire 5000 tonnes providing a fixed value and certainty for the Company. The first delivery date has not yet been established and will depend upon when the Company completes the construction of its processing plant at the Aukam Project in Namibia (see Press Release dated December 31, 2020 for an update on the status of the processing facility). When the Company is ready to deliver the SG16 product to TODAQ, it will inform TODAQ. TODAQ will then submit a purchase order for an initial 600 tonnes of product valued at $3 million and TODAQ will issue 10 million TDN to the Company. The Company will have 90 days thereafter to deliver the product to an on-site warehouse at the Aukam Property under the control of TODAQ which will constitute good delivery for the product. The Company intends to hold onto any TDN received for a minimum six months after which it will start liquidating the TDN into cash. See “Risk Factors” below.

As part of the Supply Agreement, both TODAQ and Gratomic will also be establishing a jointly owned entity, Q Corp, to hold an initial reserve of 60 million TDN to be used to build a treasury of commodities including graphite. As well, Q Corp will be provided with digital supply chain, custody, wallet and trading solutions by TODAQ USA, the digital solution provider of TODAQ, so Gratomic customers and graphite owners can own verifiably authentic and clean graphite which can be traded peer-to-peer and brought to exchange markets. Q Corp offers the option to Gratomic to trade excess production coming from its Aukam Processing facility to Q Corp.

SG16 is a battery grade graphite that can be used for anode material in the majority of Li-ion batteries focusing mainly on the EV sector.

The graphite is to be purchased by TODAQ to sit in reserve as a backstop to underpin the value of deployed TDN. The TDN will allow for cryptographic ownership and tracking of commodities as they are processed and traded.

The Supply Agreement provides that if Gratomic is unable to deliver graphite in accordance with the orders from TODAQ, TODAQ has the right to refuse to take any subsequent attempt to fulfil the order, terminate the agreement immediately, obtain substitute product from another supplier and recover from the Company any costs and expenses incurred in obtaining such substitute product or suing for damages under the contract.

The Supply Agreement provides that the graphite to be delivered will comprise the SG16 product pre-specifications. For more information, please follow this link to view the Company’s current Corporate Presentation, preliminary product information is listed on page 48.

“The recent development of digital currency markets demonstrates the importance of Gratomic being ahead of the competition with this pre-purchase agreement. We will be the first company to commercialize graphite with this innovative technology.” commented Armando Farhate, COO and Head of Graphite Marketing and sales.

“The adjustment to our existing TODAQ agreement comes as a welcome change as the Company continues to adjust its primary focus towards the rapidly growing electric vehicle market. TODAQ offers a very unique and innovative platform, through which Gratomic can bring shareholder value through bridging the Company’s asset into a non-Fiat medium” stated Arno Brand, President & CEO of Gratomic Inc.

Gratomic wishes to emphasize that no Preliminary Economic Analysis, 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 engaged Dr. Ian Flint, Ph.D., P. Eng. (BC), a Qualified Person as that term is defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects to complete a preliminary economic assessment (PEA) on the Aukam Processing plant based upon a resource estimate to be prepared by another Qualified Person. 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, and there is no certainty that the preliminary economic assessment will be realized.

The Company is not in a position to demonstrate or disclose any capital and/or operating costs that may be associated with the processing plant, nor the Company’s ability to fulfil its obligations to deliver the 1800 tonnes of graphite as required by the purchaser orders.

Other related developments from around the markets include:

Tesla Inc. (NASDAQ:TSLA) announced that, “In 2020, we produced and delivered half a million vehicles, in line with our most recent guidance. In addition, Model Y production in Shanghai has begun, with deliveries expected to begin shortly. Our net income and cash flow results will be announced along with the rest of our financial performance when we announce Q4 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.”

Apple Inc. (NASDAQ:AAPL) announced that Monica Lozano, president and CEO of College Futures Foundation, has been elected to Apple’s board of directors. Lozano brings with her a broad range of leadership experience in the public and private sectors, as well as a long and storied track record as a champion for equity, opportunity, and representation. Prior to joining College Futures Foundation, Lozano spent 30 years in media as editor and publisher of La Opinión, the largest Spanish-language newspaper in the US, helping shine a light on issues from infant mortality to the AIDS epidemic. She went on to become chairman and CEO of La Opinión’s parent company, ImpreMedia. Lozano continues to serve on the boards of Target Corporation and Bank of America Corporation.

Panasonic Corporation (OTC:PCRFY) has developed a new accommodation experience solution for lodging operators, called “(MU) ROOM,” that is designed to stimulate various human senses and offer optimal mindfulness activities. The company will install the technology at HOTEL ANTEROOM KYOTO in Kyoto City and verify its effectiveness in collaboration with the hotel from February 10, 2021. With changes in people’s values as well as the legal system, more accommodation facilities are now offering not only lodging services, but also special experiences to their guests. Given this trend, Panasonic focused on accommodation services in which guests can experience mindfulness-based activities, which are gaining popularity around the world. “(MU) ROOM” creates an optimal mindfulness space by combining the company’s various technologies, such as mist, light, sound and scent to control indoor environment and stimulate human senses.

Nio Inc. (NYSE:NIO) a pioneer in China’s premium smart electric vehicle market, provided its December, fourth quarter and full year 2020 delivery results. NIO delivered 7,007 vehicles in December 2020, setting a new monthly record representing a strong 121.0% year-over-year growth. The deliveries consisted of 2,009 ES8s, the Company’s 6-seater and 7-seater flagship premium smart electric SUV, 2,493 ES6s, the Company’s 5-seater high-performance premium smart electric SUV, and 2,505 EC6s, the Company’s 5-seater premium electric coupe SUV. NIO delivered 17,353 vehicles in the fourth quarter of 2020, representing an increase of 111.0% year-over-year and exceeding the higher end of the Company’s quarterly guidance. As of December 31, 2020, cumulative deliveries of the ES8, ES6 and EC6 reached 75,641 vehicles, of which 43,728 were delivered in 2020.

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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