China, the global graphite powerhouse, is positioning itself to corner the Asian market for electric vehicle (EV) batteries through a number of new investments.
The country controls 60% of the world’s graphite production, the critical battery raw material, and is looking to direct its producers towards emerging green energy markets.
An estimated five new battery-grade graphite plants are under construction to supply the rise of the lithium-ion battery adding to an already five established operations.
The high-tech plants will be in Shandong and Henan provinces with two major projects in Xinhe, Inner Mongolia and Luobei, Heilongjiang. By the end of 2012 domestic capacity serving the lithium-ion industry will reach 100,000 tpa.
China has long been the supplier of low value amorphous graphite for use markets such as pencils. The government, however, is pushing its 22 miners towards capturing the higher value lithium-ion battery market that will be...