Graphite production: the economics?

This data-file on battery graphite cost captures simplified economics for producing battery-grade graphite (i.e., 99.9% pure, coated, spheronized graphite) in an integrated facility, from mine to packaged output.

Marginal cost is estimated at around $10,000/ton for a 10% IRR. CO2 intensity is highly variable and debatable. Input assumptions come from technical papers, company disclosures and one detailed feasibility study (see below).

Numbers are more uncertain than other models we have constructed. However, you can nevertheless stress test the impact of changing graphite prices, electricity prices, CO2 prices, capex costs, wage rates, ore grades, processing efficiency and tax rates.

Further research. Our outlook on graphite in the energy transition is linked here. A broader discussion of this model is linked here. Our screen of leading graphite companies is linked here.

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