Demand for graphite is set to skyrocket 500% because of the rise of electric vehicles (EVs) and U.S. clean energy and electrification efforts under the Biden administration, according to a mining company Lomiko in Quebec City.
The U.S. does not produce domestic graphite, which is used in lithium batteries for electric vehicles, so it relies on imports. China produces 60% of the world’s graphite and was the top source of the mineral for the U.S. in 2019. Mexico and Canada produce only 4% of the world’s graphite.
Lomiko, which focuses on minerals for the green economy, cited a World Bank report that found the world will need more than three billion tons of minerals and metals for wind, solar, geothermal power and energy storage to achieve a below 2°C future. The report “Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition” also said that the carbon footprint created by their production — from extraction to end use — will account for only 6% of the greenhouse gas emissions generated by fossil fuel technologies.
Lomiko has discovered graphite at its La Loutre Property in Quebec and is now working on a pre-economic assessment of the mine.
In support of its graphite projections, Lomiko pointed to a report by Deloitte that forecasts EVs will likely account for 81% ($25.3 million) of all new vehicles sold by 2030.
