CTT Pharmaceutical Holdings Inc (CTTH)

[Earthly_Investor]

Graphite prices at pre-crisis levels.

http://www.northerngraphite.com/wp-content/uploads/2010/01/Graphite-demand-soars.pdf

Mobile energy markets, currently the second largest consumer of graphite (25%), are also showing promising
growth over the short and longer term. Graphite is used in the electrodes of a number of battery types
including Li-ion, where it is intercalated with lithium ions - creating a very stable battery that provides a high
energy density.
It is expected that demand for lithium carbonate (Li-ion’s feedstock material) will grow from 105-115,000
tonnes in 2011 to around 300,000 tonnes in 2020 (all lithium markets, including Li-ion - see p.39). As much
as 100,000 tonnes of this could be for the electric vehicle market alone.
“One of the future drivers for graphite will be the demand for electric vehicles,” GK’s Junker told IM. “What
is still unclear to us is how big the influence and how steep the graphite demand curve for this application
will be.”
“The forecasts which can be found differ quite significantly. As the raw material used to produce spherical
graphite for Li-ion batteries is of higher quality, we see prices for these grades more on the higher side in the
future,” Junker explained.
“Our information is, that in 2010 around 30,000 tonnes of spherical graphite was produced to be used in the
negative mass of Li-ion batteries. Only a small portion ended up in batteries for electric vehicles. If the sales
of EVs continue as reported, the demand for graphite in this application will increase significantly,” revealed
Junker.
Graphite is the second largest input material into a Li-ion battery by volume. The production of spherical
graphite for Li-ion batteries destroys around 60-70% of the feedstock material, flake graphite. That would
indicate around 90-100,000 tonnes of flake graphite (total production of which is around 400,000 tonnes) is
already being used in Li-ion batteries.