Both the US and Europe have deemed graphite a critical material and the race is on around the world to find new sources and new uses for graphite and its spin-off, graphene.
 
One of the most titillating plans is the University of Manchester’s work to develop condoms using graphene, thanks to funding from the Bill and Melinda Gates Foundation.
 
The grant made headlines in November 2013 and developers are keen to create an “everyday use” for graphene, a one-atom thick layer of carbon that is stronger than steel, flexible and an excellent conductor of heat and electricity.
 
New uses for graphene are limited only by scientists’ imaginations, according to London-based Beaufort Securities analyst Barry Gibb.
 
He also believes improved processing will increase demand for natural graphite over its costly synthetic alternative.
 
In a research report into ASX-listed Triton Minerals, Gibb noted the fast-growing technology sector usually used synthetic graphite in its batteries to power laptops, smart phones and electric cars.
 
“Natural and synthetic graphite industries tend to operate independently and presently have only limited crossover in market share and end-uses, although this is expected to change in favour of the natural product in coming years due to improved processing techniques,” Gibb said.
 
Perth-based mining executive Brad Boyle has seen one of the key illustrations of the burgeoning market for graphite in new technology.
 
The Triton managing director said the villagers who lived around the company’s Balama North graphite project in Mozambique lived in mud huts, yet many had mobile phones.
 
“They don’t have running water, they don’t have electricity, yet many, many people walk around with a mobile phone,” Boyle said.
 
“They have walk 30-50km or catch a bus to be able to charge their phone but that to me clearly demonstrates that the demand for mobile phones, computers, GPSs, all that technology is never-ending at this point.
 
“That just reinforced my belief that the demand for technology, which is graphite driven – such as your mobile phones and touch screen technology – will continue to grow exponentially and when new uses come in, obviously people will adopt them in their lives and they’ll continue to grow from there.”
 
He said for people in developing countries, being able to use a mobile phone was a cheaper and easier way to communicate with family and friends who would otherwise be a day’s walk away.
 
“One of the deciding factors when we looked at our (Balama North) project 18 months ago was to look at what the future global demand for graphite would be and without going into green energy – even though I think it’s massive potential I think it may take a few years before that really starts to grow – it’s a supply and demand issue, the more readily a supply of graphite material is, the more people are inclined to use it in different applications.
 
“One of the key things I looked at was technology and the ever-expanding middle class of China, India, Africa and South America – we’re talking about countries which have a high percentage of their population living on or below the poverty line.
 
“Now in recent years with economic development of these major population centres, a lot of people are moving from a very low income into a slightly higher bracket and being human, we tend to be materialistic in what we do and nothing says that stronger than going out to Balama and seeing an area where the villagers live in mud huts but many of them have mobile phones.”
 
American companies are also on the hunt for natural graphite as China’s dominance on the market is expected to weaken.
 
In 2012, China accounted for about three-quarters of the global graphite production but the government has closed dozens of mines on environmental grounds and has introduced a new export tax.
 
The Associated Press recently reported economic optimism for graphite remained.
 
“The last time the industry saw this much activity in North America was two decades ago, during a perceived supply shortage,” AP reported.
 
In the US, Graphite One intends to develop its Graphite Creek deposit, the country’s only advanced stage large-scale, large flake graphite deposit.
 
The company says global graphite consumption has doubled since 2000 and a looming global graphite deficit is expected.
 
Graphite One said the growing applications for graphite included fuel cells, nuclear reactors and lithium-ion batteries.
 
Lithium-ion batteries use up to 30 times more graphite than lithium and the company believes the market will grow up to 30% annually over the next few years.
 
In a recent presentation, Graphite One also listed patents and applications for graphene that included Xenox aiming to reduce printing costs, Lockheed Martin to filter salt from seawater and Saab to improve aeroplane wings.
 
Imagination looks to be the only limit for the sector.
 
This article originally appeared in the April edition of MiningNews.net’ sister publication, RESOURCESTOCKS.