REG - Tirupati Graphite - Statement on China’s Graphite Export Restrictions

Tirupati GraphiteAnnouncement

23/10/2023 07:15

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RNS Number : 8852Q  Tirupati Graphite PLC  23 October 2023

 

 

23 October 2023

Tirupati Graphite plc

('Tirupati', 'TG' or the 'Company')

 

                Implications of China's Graphite Export
Restrictions

 

Tirupati Graphite plc (TGR.L, TGRHF.OTCQX), the specialist Flake Graphite
company and supplier of the critical mineral for the global energy transition,
notes the recent decision by the Chinese government to impose export controls
on Graphite and related products from 1 December 2023 stating that the
decision would 'safeguard national security interests'.

 

Flake Graphite is the largest constituent of Lithium ion batteries used in
various applications including electric vehicles and grid energy storage.
There is increasing global awareness of China's domination of the supply of
various critical minerals required for the energy transition, including
Natural Flake Graphite. The Company is one of very few current producers
outside China,  and one of only two quoted companies outside China that has
brought globally significant new Flake Graphite production capacity into
commercial production in the past decade, and at industry leading capital
intensity levels.

 

By 2025, demand for Graphite is expected to exceed supply and demand is
expected to continue to outpace production growth until well into the next
decade as the automotive industry ramps up EV production.

 

Tirupati expects the combination of increasing demand and supply shortfalls,
alongside China's export restrictions, to have a positive impact on Graphite
prices which have fallen since the start of 2023. Tirupati also expects that
ex-China consumers of Flake Graphite in energy transition sectors and others
shall progress their efforts to secure ex-China supply sources for their Flake
Graphite needs to mitigate increasing geopolitical risk surrounding it and
other critical minerals.

 

Tirupati currently provides Natural Flake Graphite from its initial mines in
Madagascar which are in the early stages of production ramp-up and is
targeting becoming a globally significant player by providing c. 8% of global
supply by 2030 from its Madagascan project portfolio and its development
projects in Mozambique.  This  development in China reinforces the Company's
strategy, which may further evolve based upon the extent and impact of the
announced Graphite export restrictions, and the impact on EV battery supply
chains and Natural Flake Graphite availability. It is also important to note
that Mozambique and Madagascar are the largest producers of Graphite outside
China and together represent c.15% of current global Flake Graphite
production.

 

Shishir Poddar, Executive Chairman, said:

 

"Our target is for Tirupati to become the leading producer and supplier of
Natural Graphite, including for use in Li-ion batteries and the energy
transition sectors outside of China. The global dependence for Graphite on
China, a key component of the EV revolution, is a cause of growing concern for
international customers as supply becomes increasingly constrained.

 

"The implications of China's export restrictions are positive for Tirupati
both in terms of the likely impact on prices, and on the long-term demand for
our product given our position as one of the few Graphite producers outside of
China.

 

Western governments have initiated support for critical minerals projects, but
it could be expected that policies of this nature as announced by China will
further concentrate their focus on projects offering Sustainable alternatives
to diversify and improve security of supply of the minerals critical to the
energy transition such as Natural Graphite."

 

 

ENDS

For further information, please visit https://www.tirupatigraphite.co.uk/
(https://www.tirupatigraphite.co.uk/) or contact:

 

 Tirupati Graphite Plc

 Puruvi Poddar - Chief of Corporate & Business Development        admin@tirupatigraphite.co.uk (mailto:admin@tirupatigraphite.co.uk)

                                                                  +44 (0) 20 39849894
 Optiva Securities Limited (Broker)

 Ben Maitland - Corporate Finance                                 +44 (0) 20 3034 2707

 Holly Ritson - Corporate Broking                                 +44 (0) 20 3981 4173

 FTI Consulting (Financial PR)                                    +44 (0) 20 3727 1000

 Ben Brewerton / Nick Hennis / Lucy Wigney                        tirupati@fticonsulting.com

 

About Tirupati Graphite

 

Tirupati Graphite Plc is a specialist graphite producer and a supplier of
critical minerals for a decarbonised economy and the energy transition. The
Company places a special emphasis on green applications, including renewable
energy, e-mobility, energy storage, and thermal management, and is committed
to ensuring its operations are Sustainable.

 

The Company's operations include primary mining and processing in Madagascar,
where the Company operates two key projects, Sahamamy and Vatomina with a
combined 30,000 tpa currently installed capacity, producing high-quality flake
graphite concentrate with up to 97% purity and selling to customers globally.

 

The Company has also acquired two advanced stage, and world class, natural
Graphite projects in Mozambique, and has commenced work to optimise the
economics for development of the construction initiated Montepuez project,
which is permitted for 100,000tpa.

 

 

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