Lomiko EV Battery Material Supply Strategy Requires Spherical Graphite Production from La Loutre Suitable for Graphite Ano des
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Lomiko EV Battery Material Supply Strategy Requires Spherical Graphite
Production from La Loutre Suitable for Graphite Ano des
(Vancouver, British-Columbia) August 13, 2019 - Lomiko Metals Inc. (TSX-V: LMR, OTC:
LMRMF, FSE: DH8C) (Lomiko or the “Company”) has identified spherical graphite
production as a key waypoint in plans to supply graphite anodes for Electric Vehicles (EVs)
Li-ion battery mega factories in the North American market discussed in a July 16th, 2019
release . Testing for spherical graphite is to be included in a Preliminary Economic
Assessment (PEA) which is planned for the La Loutre graphite project located in Quebec,
Canada. The development of a strategy that identif ies a way to create value-added
products is required to establish a long-term, profitable business before extensive capital
outlay is crucial to the success of the company.
A. Paul Gill, CEO states, “We are at the beginning of the battery materials bull market with
91 Lithium-ion mega-factories built or to be built worldwide. However, potential North
American Suppliers of graphite materials are facing investor skepticism because graphite
materials coming from African mines such as Syrah R esources are satisfying Chinese
graphite anode demand at present. Lomiko sees an opportunity in creating a stable and
integrated North American value chain for North Ame rican EV manufacturers to African
graphite or Chinese anodes which are susceptible to political strife or trade wars.”
Graphite Sector Analysis
The price for 95% C (purity), 15 microns Spherical Graphite is $2,700-2,800 USD/tonne,
far above the price of other forms of graphite as i ndicated by the Industrial Minerals .
Lomiko’s Preliminary Economic Assessment (PEA) will include costs and the potential
market for this key product. In order to start the PEA, Lomiko must first deliver its second
resource prepared in compliance with NI 43-101 Regulations from La Loutre.
Industrial Minerals indicates China imported 21,486 tonnes of flake graphite in June 2019,
14,864 tonnes came from Mozambique, accounting for 70% of total Chinese imports. The
principal source of graphite flake in Mozambique is Syrah Resources, which primarily
produces 94% C, -100 mesh material. Increased exports from Mozambique has weighed
on the market since Syrah began commercial production at the start of this year. June's
import volumes into China were the highest since at least January 2017.
In the first half of this year, China imported 105,462 tonnes of flake graphite in response
to the healthy development of the lithium-ion anode industry in China. At least half of
total imported flake graphite was used in the anode industry, with the refractory sector
the second largest consumer, according to market sources.
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The use of large flake graphite as a refractory (heat-resistant) material began before 1900
with the graphite crucible used to hold molten meta l. In the mid-1980s, the carbon-
magnesite brick became important, and a bit later a lumina-graphite material. Graphite
blocks are also used in parts of blast furnace linings where the high thermal conductivity
of the graphite is critical.
Graphite electrodes are another long-term market fo r natural flake graphite. Graphite
conductors which release electric energy in the form of an electric arc, are used to heat
and melt the steel scraps in an electric arc furnace. They are currently the only products
with high electrical conductivity and are able to maintain extremely high heat generation
in this demanding environment. With the growing dem and for quality steel in the
aerospace, automotive and electronics industries, graphite electrodes are also becoming
increasingly popular.
For more information on Lomiko Metals, review the website at www.lomiko.com , contact
A. Paul Gill at 604-729-5312 or email: [email protected].
On Behalf of the Board,
“A. Paul Gill”
Chief Executive Officer
We seek safe harbor. Neither TSX Venture Exchange n or its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release