Graphite and Batteries in the European Unit landscape

[Semmel]

This thread is for discussing the european wide political landscape for Talga, Graphite as a mineral, as a battery anode and other battery related legislations. The thread is kicked off with a bombshell.

Today, the EU published the European Critical Raw Materials Act, the (for Talga) most important European legislation in recent history. You can find the documents here:

European Critical Raw Materials Act

Proposal for a regulation establishing a framework for ensuring a secure and sustainable supply of critical raw materials

single-market-economy.ec.europa.eu

In the second document, titled COM(2023) 160 ANNEX 1 to 6 - Annexes to the Proposal for a regulation of the European Parliament and of the Council establishing a framework for ensuring a secure and sustainable supply of critical raw materials, graphite for batteries is listed as a strategic mineral, on page 1:

The following raw materials shall be considered strategic:
(a) Bismuth
(b) Boron - metallurgy grade
(c) Cobalt
(d) Copper
(e) Gallium
(f) Germanium
(g) Lithium - battery grade
(h) Magnesium metal
(i) Manganese - battery grade
(j) Natural Graphite - battery grade
(k) Nickel - battery grade
(l) Platinum Group Metals
(m) Rare Earth Elements for magnets (Nd, Pr, Tb, Dy, Gd, Sm, and Ce)
( n ) Silicon metal
(o) Titanium metal
(p) Tungsten

Further, it is also listed as critical:

The following raw materials shall be considered critical:
(a) Antimony
(b) Arsenic
(c) Bauxite
(d) Baryte
(e) Beryllium
(f) Bismuth
(g) Boron
(h) Cobalt
(i) Coking Coal
(j) Copper
(k) Feldspar
(l) Fluorspar
(m) Gallium
( n ) Germanium
(o) Hafnium
(p) Helium
(q) Heavy Rare Earth Elements
(r) Light Rare Earth Elements
(s) Lithium
(t) Magnesium
(u) Manganese
(v) Natural Graphite
(w) Nickel – battery grade
(x) Niobium
( y ) Phosphate rock
(z) Phosphorus
(aa) Platinum Group Metals
(bb) Scandium
(cc) Silicon metal
(dd) Strontium
(ee) Tantalum
(ff) Titanium metal
(gg) Tungsten
(hh) Vanadium

With these assessments of the European Union, Natural Graphite projects, such as these from Talga, become eligible for political support and funding. This is a big deal for Talga.

Marks words:

 

[cosors]

This thread is for discussing the european wide political landscape for Talga, Graphite as a mineral, as a battery anode and other battery related legislations. The thread is kicked off with a bombshell.

Today, the EU published the European Critical Raw Materials Act, the (for Talga) most important European legislation in recent history. You can find the documents here:

European Critical Raw Materials Act

Proposal for a regulation establishing a framework for ensuring a secure and sustainable supply of critical raw materials

single-market-economy.ec.europa.eu

In the second document, titled COM(2023) 160 ANNEX 1 to 6 - Annexes to the Proposal for a regulation of the European Parliament and of the Council establishing a framework for ensuring a secure and sustainable supply of critical raw materials, graphite for batteries is listed as a strategic mineral, on page 1:

The following raw materials shall be considered strategic:
(a) Bismuth
(b) Boron - metallurgy grade
(c) Cobalt
(d) Copper
(e) Gallium
(f) Germanium
(g) Lithium - battery grade
(h) Magnesium metal
(i) Manganese - battery grade
(j) Natural Graphite - battery grade
(k) Nickel - battery grade
(l) Platinum Group Metals
(m) Rare Earth Elements for magnets (Nd, Pr, Tb, Dy, Gd, Sm, and Ce)
( n ) Silicon metal
(o) Titanium metal
(p) Tungsten

Further, it is also listed as critical:

The following raw materials shall be considered critical:
(a) Antimony
(b) Arsenic
(c) Bauxite
(d) Baryte
(e) Beryllium
(f) Bismuth
(g) Boron
(h) Cobalt
(i) Coking Coal
(j) Copper
(k) Feldspar
(l) Fluorspar
(m) Gallium
( n ) Germanium
(o) Hafnium
(p) Helium
(q) Heavy Rare Earth Elements
(r) Light Rare Earth Elements
(s) Lithium
(t) Magnesium
(u) Manganese
(v) Natural Graphite
(w) Nickel – battery grade
(x) Niobium
( y ) Phosphate rock
(z) Phosphorus
(aa) Platinum Group Metals
(bb) Scandium
(cc) Silicon metal
(dd) Strontium
(ee) Tantalum
(ff) Titanium metal
(gg) Tungsten
(hh) Vanadium

With these assessments of the European Union, Natural Graphite projects, such as these from Talga, become eligible for political support and funding. This is a big deal for Talga.

Marks words:

 

[Affenhorst]

Good development. The categorization of natural graphite is not actually new, as far as I understand. It has been included in multiple earlier iterations of the EU's list. However, this new proposed legislation will likely give it much more substance. Note, I said "proposed". That is what the commission does. The act still needs to be ratified, I think.

 

[ACinEur]

My issue with all this is that there is no new $$$ announcement, no pool of money like the IRA…I’m underwhelmed TBH…This is classic EU … I thought they would have learnt fro the US… Anyway let’s see how we go at a project level, roll on permits

 

[beserk]

Yes agree pretty pictures but no dough. The CRM Act does give some answers to Why and How but not How much.

Perhaps there is a part 2 to the Act with €€ amounts stated. Maybe?

 

[TentCity]

Yes agree pretty pictures but no dough. The CRM Act does give some answers to Why and How but not How much.

Perhaps there is a part 2 to the Act with €€ amounts stated. Maybe?

Money talks - unless the EU start writing some big cheques, companies like NV, VW & Tesla will follow through with their threat to prioritise US expansion over Europe.

So, hopefully you are right and there is more details regarding how additional funding will be tapped into - but it is not very obvious at this stage.

 

[beserk]

And for those of you like me that are new to the terminology used in the legislation and the division of Natural graphite - battery grade as opposed to Natural graphite here is an explanation picked from Euractive .

"The Commission draws a clear distinction between ‘strategic’ and ‘critical’ raw materials. Strategic metals are those with high importance in specific sectors – say, microchips or batteries – that may experience global demand/supply imbalances, and may be subject to barriers to trade from producing third countries

Critical raw materials (CRMs), on the other hand, are crucial for the EU economy at large, all the while facing risks of severe supply disruptions"

 

[cosors]

Graphite was the only RM in the last report that was not ~'legal'. It was the only one listed under revaluation. It was in the last one RM but the only one under observation with revaluation that we now know.

That's why I'm celebrating today.

IMHO

 

[Semmel]

Good development. The categorization of natural graphite is not actually new, as far as I understand. It has been included in multiple earlier iterations of the EU's list. However, this new proposed legislation will likely give it much more substance. Note, I said "proposed". That is what the commission does. The act still needs to be ratified, I think.

You are correct, Natural Graphite is also in the list of 2020 critical raw materials. It even sais that its a critical raw material since 2011, for 4 reports straight right now. see:

https://rmis.jrc.ec.europa.eu/eu-critical-raw-materials also https://rmis.jrc.ec.europa.eu/uploads/CRM_2020_Report_Final.pdf

The strategic part is new though as far as I can see.

Graphite was the only RM in the last report that was not ~'legal'. It was the only one listed under revaluation. It was in the last one RM but the only one under observation with revaluation that we now know.

That's why I'm celebrating today.

IMHO

I didnt find a reference for that though. But I text searched the enormous report above for graphite and didnt read it in detail. But maybe, can you direct us to where you get that from?

 

[Semmel]

Money talks - unless the EU start writing some big cheques, companies like NV, VW & Tesla will follow through with their threat to prioritise US expansion over Europe.

So, hopefully you are right and there is more details regarding how additional funding will be tapped into - but it is not very obvious at this stage.

Yes, thats classic EU. Its first of all only the commission and needs ratification, but thats much more a given than in the US with its congress. The EU tends to wave stuff like that through much more. Especially since there is no budget attached. But its still the first step and opens doors. I think the money will come in individual assessments, not as a blanket sheet as in the US.

I also think the reprioritization for NV, VW and Tesla this is going to happen, its already in motion. The EU is incapable of swift action. The critical raw materials is like a list of ports your supertanker of the EU might want to go to. But where it actually goes is then a discussion for another day. But it IS the first step that needed to be taken. I dont know specifically how funding is now applied to companies. But being critical and strategical will help any negotiation with the EU Investment bank. This pretty much solidifies the "up to" €300M in funding. All in all, the EU will lag behind but there is enough business for Talga regardless.

 

[cosors]

You are correct, Natural Graphite is also in the list of 2020 critical raw materials. It even sais that its a critical raw material since 2011, for 4 reports straight right now. see:

https://rmis.jrc.ec.europa.eu/eu-critical-raw-materials also https://rmis.jrc.ec.europa.eu/uploads/CRM_2020_Report_Final.pdf

The strategic part is new though as far as I can see.



I didnt find a reference for that though. But I text searched the enormous report above for graphite and didnt read it in detail. But maybe, can you direct us to where you get that from?

It is under a graphic in small print or reference with footnote I mean. I am absolutely sure about that. But I don't feel like looking during my vacation and now it doesn't matter anymore. I had expected the revaluation a year ago.

Now the only open issue remains the EU Taxonomy and mining. So far, this segment is the only sector missing. So it can not be ~legally invested in mining under the Taxonomy because it is not declared as strategic green investment sector. Svemin, of course, is also keen on news. The decision is already long overdue. I would have to see where the topic has fallen asleep, but not yet.