Resumen de Syrah: EV boom will spur China’s shift to become net graphite importer
New market entrant Syrah Resources has forecast a macro change in global graphite supply in the coming years, with battery and electric vehicle (EV) end-markets leading China to become a net importer of the mineral.The graphite market will undergo a shift in structure and pricing that could see China becoming a net importer of natural graphite to meet forecast local demand for EV batteries, according to Luke McFadyen of Syrah Resources. “China’s industrialization is nearly at its end – they’re just putting the finishing touches to it now – [so] demand growth for graphite is all dependent on electric vehicles,” McFadyen, Syrah Resources’ market analysis and economics manager, said at the Advanced Automotive Batteries Conference in Mainz, Germany, which ran January 29 to February 1. The necessary shift in China’s buying patterns is likely to be a precursor to a shift in pricing structures in the graphite market, triggering a shift away from fixed-price long-term contracts, in favor of pricing linked to spot reference prices.
