With electric vehicle demand showing no signs of slowing, it’s increasing the need for high-quality metals, like graphite. After all, graphite is an essential material used for producing the anode of lithium-ion batteries using in electric vehicles and energy storage.
At the moment, it’s in big demand. That’s because, by 2030, the world could see 125 million EVs on the road, which could be beneficial for companies, such as Tesla Inc. (NASDAQ:TSLA), and General Motors Company (NYSE:GM). In California, for example, Gov. Newsom signed an executive order that will ban the sale of gas-powered passenger cars in the state starting in 2035. That means only EVs will be available for purchase in the next 15 years.
However, for that to happen, the world will need substantial supply of graphite.
Unfortunately, there’s a supply problem. One so severe, the USGS includes graphite on its list of 35 minerals and metals considered critical to the United States. “USGS also sees a major spike in U.S. demand for graphite when Tesla Motor’s Gigafactory, an enormous lithium-ion battery facility being constructed in Nevada, is fully operational.”