- The global target of decarbonisation has accelerated the popularity of electric solutions that are less taxing on the environment.
- Increasing adoption of EVs and household energy storage systems are driving growth in the battery market.
- BlackEarth Minerals, in the current trending scenario, has aligned its operations well to suit the demand for battery materials like high-grade graphite.
While transformations have always been an integral component of human society, the last couple of years saw some massive shifts, toning down even the most progressive phase of modern history.
At this critical juncture, BlackEarth Minerals NL (ASX: BEM) has been able to appraise the situation timely. The series of its successful endeavours highlights that the Company is well prepared to capitalise on the transitions of the current period.
Let us look at what lies at the heart of the latest transitions and how BlackEarth is navigating effectively to gain a strong position in the battery market.
Decarbonisation driving the Battery Market
The Booming EV Market
The world is witnessing a transitional shift towards more sustainable alternatives, among which electric vehicles have amassed tremendous popularity in the past couple of years. While governments worldwide have responded favourably to environment-friendly solutions, consumers cannot overlook the enhanced cost-effectiveness associated with new battery-operated vehicles.
Cutting to the chase, EVs reduce dependency on conventional fossil fuels, which are not only non-replenishable but also cause several environmental concerns. Governments are taking robust measures to boost growth in the EV sector with incentives, tax reductions or both fuelling the increase in EVs' acceptance.
Source: Copyright © 2021 Kalkine Media Pty Ltd.
Growing Popularity of Household Energy Storages
Although the automotive sector indeed holds the lead when it comes to transitions, it is closely followed by the household battery storage trends which help in decarbonising the electricity sector. Driven by an increase in electricity bills as people spent more time at home during the lockdown, Australia saw an uptick in demand for battery storages dependent on biodegradable energy sources.
Overall, governmental efforts, cost favourability and low ecological concerns associated with battery technologies are appealing to cognitive senses, with new developments adding to their optimistic outlook.
Given the backdrop, let us look at some of the latest BEM developments in line with the trending scenario:
BlackEarth’s Strategic Partnership with Urbix and LuxCarbon
The Company has signed an MOU with US-based Urbix, Inc., specialising in developing EV-related graphite products. As per the agreement, BEM will accelerate the development of its Madagascan project sites and source high-grade graphite concentrate for supply to the downstream processing facility of Urbix in the US.
BlackEarth and Urbix also propose to enter an Operational Joint Venture in the future using the competencies of both companies.
In another strategic move, BlackEarth joined hands with LuxCarbon GmbH to secure the supply of up to 25K tonnes of high-grade graphite to assist with the plant development of Urbix.
Under the MOU terms, BlackEarth will sell up to 25K metric tonnes of downstream products annually from its operations and JV operations to respond to the escalating EV material demand of the European market.
Source: Copyright © 2021 Kalkine Media Pty Ltd.
BlackEarth Joins the European Battery Alliance
BlackEarth, along with LuxCarbon GmbH, joined the European Battery Alliance (EBA), one of the globally leading industry groups committed to developing the EV and battery markets.
The alliance would provide BlackEarth Minerals further strategic advantage to widen its footprints in the European battery market, backed by its association with EBA members.
Commencement of Stage 2 Pilot Test Program
The Company is also undertaking an extensive-scale pilot test program on the graphite material taken from its Madagascar-based Maniry project. The metallurgical test would be conducted on approximately 60-70 tonnes of graphite material, with the results planned to be used as part of the DFS for finalising process design criteria.
Graphite concentrate produced from the program will be used for finalising downstream and binding offtake arrangements, thereby accelerating project funding and the commencement of plant construction.
Initial results from the test have been highly encouraging.
Detailed discussion at: BlackEarth Minerals (ASX:BEM) buoyed up on promising graphite results
Stock Performance - BEM shares have delivered a price momentum of around 3.5x in the past three months. The stock was trading at A$0.155 on 1 April 2021 (AEDT 02:44 PM).