GreenRoc Mining PLC shares were up on Tuesday, after it noted the recent to decision by the Chinese government to implement export restrictions on graphite.
Shares in the UK and Greenland-focused mineral explorer were up 11% to 3.90 pence each in London on Tuesday around midday.
It said that China’s announcement to implement restrictions on the export of higher grade graphite, scheduled to take effect by December 1, has ‘significant implications’ for the global battery industry.
China on Friday announced new curbs on exports of certain types of graphite, key to making batteries for electric vehicles, days after the US slapped fresh restrictions on outflows of high-tech microchips, AFP reported.
China was the world’s leading graphite producer last year, accounting for an estimated 65% of total production, according to the US Geological Survey.
GreenRoc explained that under the new restrictions, Chinese companies must seek special export permits to supply this crucial raw material to international battery manufacturers.
‘The extensive use of graphite in lithium-based EV batteries foretells a significant surge in demand, with forecasts indicating a quadrupling of requirements within the next decade,’ it noted.
Further, the firm said that in Europe alone, the demand for battery-grade graphite is estimated to reach one million tonnes by 2030.
GreenRoc’s Chief Executive Stefan Bernstein commented: ‘China’s decision to impose export restrictions on graphite underscores the critical need to establish secure supply chains by boosting domestic, non-Chinese production capability, which is less vulnerable to market shocks and geopolitical events.’
‘This development is a timely reminder that our plans at GreenRoc to bring our world-class graphite deposit at Amitsoq in South Greenland into production in the space of a few years, alongside the development of a processing plant to produce anode-ready material for EV battery manufacturers, mean that we are ideally positioned to play a critical role in Europe and North America’s energy transition.’
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