Graphite: NextSource secures funds for advanced graphite testing

By Roskill –

NextSource, the Toronto-based graphite company, has successfully held a private placement which will enable it to carry out advanced testing on its SuperFlake® graphite concentrate for battery anode and expanded foil applications for specific customers.

The material will be tested at SGS Minerals facility at Lakefield, Canada.

NextSource is developing its 100% owned Molo Graphite project in southern Madagascar which is at feasibility stage. The deposit has been proven to yield a 98% carbon purity with standard flotation processing, with no deleterious impurities, and can potentially be upgraded to 99.97% purity (battery grade).

Roskill’s View: There are several up and coming natural flake graphite projects in Africa which are looking to supply the lucrative and growing battery market, including the one owned by NextSource. The dominant graphite exporter, China, is facing increasingly stringent environmental restrictions which could alter the supply chain, as well pushing up production costs. The supply side issues in China have coincided with a period of increased domestic demand which could apply a brake on export volumes from China. China is by far the largest producer of both flake and amorphous natural graphite, accounting for more than half of global flake production and more than 90% of global amorphous production.

This is the market situation that African exporters, current and potential, are lining up to supply as sources of low cost material of consistent quality will be sought by industries such as expanded graphite and refractories, as well as servicing the lithium-ion battery sector.

Roskill’s new Natural and Synthetic Graphite: Global Industry, Markets & Outlook report, which is now in its 11th edition, was just published in June 2018 with 10-year price, supply and demand forecasts.


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