Tirupati Graphite PLC Statement on China's Graphite Export Restrictions (8852Q)
23 Octobre 2023 - 8:04AM
UK Regulatory
TIDMTGR
RNS Number : 8852Q
Tirupati Graphite PLC
23 October 2023
23 October 2023
Tirupati Graphite plc
('Tirupati', 'TG' or the 'Company')
Implications of China's Graphite Export Restrictions
Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist Flake
Graphite company and supplier of the critical mineral for the
global energy transition, notes the recent decision by the Chinese
government to impose export controls on Graphite and related
products from 1 December 2023 stating that the decision would
'safeguard national security interests'.
Flake Graphite is the largest constituent of Lithium ion
batteries used in various applications including electric vehicles
and grid energy storage. There is increasing global awareness of
China's domination of the supply of various critical minerals
required for the energy transition, including Natural Flake
Graphite. The Company is one of very few current producers outside
China, and one of only two quoted companies outside China that has
brought globally significant new Flake Graphite production capacity
into commercial production in the past decade, and at industry
leading capital intensity levels.
By 2025, demand for Graphite is expected to exceed supply and
demand is expected to continue to outpace production growth until
well into the next decade as the automotive industry ramps up EV
production.
Tirupati expects the combination of increasing demand and supply
shortfalls, alongside China's export restrictions, to have a
positive impact on Graphite prices which have fallen since the
start of 2023. Tirupati also expects that ex-China consumers of
Flake Graphite in energy transition sectors and others shall
progress their efforts to secure ex-China supply sources for their
Flake Graphite needs to mitigate increasing geopolitical risk
surrounding it and other critical minerals.
Tirupati currently provides Natural Flake Graphite from its
initial mines in Madagascar which are in the early stages of
production ramp-up and is targeting becoming a globally significant
player by providing c. 8% of global supply by 2030 from its
Madagascan project portfolio and its development projects in
Mozambique. This development in China reinforces the Company's
strategy, which may further evolve based upon the extent and impact
of the announced Graphite export restrictions, and the impact on EV
battery supply chains and Natural Flake Graphite availability. It
is also important to note that Mozambique and Madagascar are the
largest producers of Graphite outside China and together represent
c.15% of current global Flake Graphite production.
Shishir Poddar, Executive Chairman, said:
"Our target is for Tirupati to become the leading producer and
supplier of Natural Graphite, including for use in Li-ion batteries
and the energy transition sectors outside of China. The global
dependence for Graphite on China, a key component of the EV
revolution, is a cause of growing concern for international
customers as supply becomes increasingly constrained.
"The implications of China's export restrictions are positive
for Tirupati both in terms of the likely impact on prices, and on
the long-term demand for our product given our position as one of
the few Graphite producers outside of China.
Western governments have initiated support for critical minerals
projects, but it could be expected that policies of this nature as
announced by China will further concentrate their focus on projects
offering Sustainable alternatives to diversify and improve security
of supply of the minerals critical to the energy transition such as
Natural Graphite."
ENDS
For further information, please visit
https://www.tirupatigraphite.co.uk/ or contact:
Tirupati Graphite Plc
Puruvi Poddar - Chief of Corporate & Business admin@tirupatigraphite.co.uk
Development +44 (0) 20 39849894
Optiva Securities Limited (Broker)
Ben Maitland - Corporate Finance +44 (0) 20 3034 2707
Holly Ritson - Corporate Broking +44 (0) 20 3981 4173
FTI Consulting (Financial PR) +44 (0) 20 3727 1000
Ben Brewerton / Nick Hennis / Lucy Wigney tirupati@fticonsulting.com
About Tirupati Graphite
Tirupati Graphite Plc is a specialist graphite producer and a
supplier of critical minerals for a decarbonised economy and the
energy transition. The Company places a special emphasis on green
applications, including renewable energy, e-mobility, energy
storage, and thermal management, and is committed to ensuring its
operations are Sustainable.
The Company's operations include primary mining and processing
in Madagascar, where the Company operates two key projects,
Sahamamy and Vatomina with a combined 30,000 tpa currently
installed capacity, producing high-quality flake graphite
concentrate with up to 97% purity and selling to customers
globally.
The Company has also acquired two advanced stage, and world
class, natural Graphite projects in Mozambique, and has commenced
work to optimise the economics for development of the construction
initiated Montepuez project, which is permitted for 100,000tpa.
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END
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