Quantum Graphite has achieved flake purity grades of 99.99 per cent graphitic carbon following thermal purification results from its final phase of testing on samples from its Uley 2 mine in South Australia.
The flake was treated at a thermal temperature of 2850 degrees celsius to achieve the impressive purity levels using a testwork program conducted by Germany’s Institute of Nonferrous Metallurgy and Purest Materials (INEMET), ProTherm Systems and Sunlands Power.
The final phase of the program was supervised by Quantum’s technical consultants, while ALS’ laboratories in Perth’s suburb of Balcatta conducted the elemental analysis following the high-temperature thermal treatment.
Importantly, the company says its results confirm that commercial production of Uley flake at a purity of 99.99 per cent can be achieved using Sunlands’ proprietary process, which is free of any chemical processes or methods with adverse environmental effects.
In March, first-phase testwork on the company’s Uley coarse flake graphite achieved a purity of 97.59 per cent graphitic carbon at 2200°C and the company predicted increased temperatures would raise that mark to the 99.5 per cent needed for anode production. The latest results surpassed management’s expectations to achieve the 99.99 per cent purity.
The results deliver on the Company’s commercial strategy to deliver the leading natural flake products across all applications. From high technology industrial uses to thermal storage products and feed material for Li-ion anode, Uley flake demonstrably delivers a superior product in an environmentally sustainable way. Quantum Graphite managing director Sal Catalano
Graphite is the most prominent ingredient in lithium-ion batteries, along with lithium, nickel and cobalt. Industry analyst experts expect demand for graphite from the battery sector will grow exponentially in coming years with a World Bank Report forecasting a growth of a compound annual rate of 5.3 per cent to reach US$21.6 billion (AU$32.1billion) by 2027.
Quantum says based on its latest purity level, the current market price for its Uley 2 products is about US$15,401 (AU$22,960) per tonne – compared to the basket price used in its 2019 definitive feasibility study (DFS) of US$919 (AU$1370) – based on current pricing data from Benchmark Mineral Intelligence.
The company is currently in the process of updating its DFS to reflect the market price at the new level of purity, in addition to investigating an increase to production levels to more than 100,000 tonnes per year.
Quantum’s Uley 2 project holds a resource of 6.3 million tonnes at 11.1 per cent total graphitic carbon for a total inventory of 672,000 tonnes of contained graphite.
The company and its joint venture partner Sunlands Co are working together to develop thermal energy storage cells using natural flake graphite after launching independent testwork to accelerate the commercialisation of the technology. Management says the devices could provide long-duration energy solutions and play an integral role in delivering stable and flexible energy to grids dependent on renewable power.
Is your ASX-listed company doing something interesting? Contact: office@bullsnbears.com.au