Critical Reagents Processing Corp (GRXXF)

[PennyMaster]

The Tesla Effect: The Perfect Opportunity For Graphite Energy Corp. (OTC: GRXXF) ?



Tesla CEO Elon Musk’s goal is to be building 500,000 electric-vehicles (EV) by 2020. With this planned production rate in the latter half of the decade, Tesla alone will require today’s entire worldwide production of lithium-ion batteries. With this immense demand, graphite mining companies like Graphite Energy Corp (CSE: GRE) (OTC: GRXXF) could be set to see a major boost in production demand!

There are two primary raw materials necessary to build lithium-ion batteries; lithium and graphite; roughly 15x more graphite than lithium.

In a clear indication that Tesla has begun sourcing the raw materials needed for its Nevada gigafactory, last week Tesla signed a 5-year lithium supply agreement with Vancouver based Pure Energy. This puts Tesla well on its way to meeting its lithium supply needs, however, the company still faces the task of securing its graphite needs for the gigafactory.

tesla graphite

Tesla can acquire this through the supply of synthetic graphite, which is very expensive (up to $20,000 per ton) and requires fossil fuels to manufacture. Both of which go against Tesla’s announced mandate to reduce the cost of battery production and move away from reliance on hydrocarbons.

Alternatively, they can secure off-take from a high quality, graphite deposit, much like they did with the Pure Energy lithium. Given the substantial concerns surrounding Chinese graphite mines (world’s largest graphite producer) it is quite likely that Tesla will seek a North American source for its graphite. This will be a main point of focus for investors looking to get in on the ground floor of the graphite boom.

“Our property has a lot of potential because we have historic graphite deposits, many showings and electromagnetic conductors, which we believe could be extensions of the known mineralization. Our host rocks, the Granville province, are the same hosts of several past producing graphite mines and several showings in the vicinity. The Lac Aux Bouleaux property lies adjacent to the south of the Lac Des Iles graphite mine which is considered world class because it produces 25,000 tones of graphite annually and is the largest of only 2 operating graphite mines in north America.”

– Joanne Freeze, Geologist/Technical Advisor, Graphite Energy Corp. (OTC: GRXXF)

https://blueskyinvestor.com/investors-are-calling-this-the-4th-industrial-revolution/