S&P Global — 25 November 2024
Daily Update: November 25, 2024
Graphite Beyond the Pencil
By Nathan Hunt
Start every business day with our analyses of the most pressing developments affecting markets today, alongside a curated selection of our latest and most important insights on the global economy
Graphite is a crystal form of carbon, composed of stacked layers of honeycombed graphene. While natural graphite is often used for pencil leads, when purified, both natural and synthetic graphite are excellent conductors of heat and electricity. Although graphite has been used by people since the Neolithic era, today its conductivity makes it a key element for the energy transition: Graphite is commonly used as an anode material for lithium-ion batteries in electric vehicles.
On a recent "EnergyCents" podcast from S&P Global Commodity Insights, hosts Hill Vaden and Sam Humphreys interviewed metals expert Gavin Montgomery to understand the uses, sources and market for graphite today.
To understand the role that graphite plays in the energy transition, Montgomery explained the main parts of a lithium-ion battery: the cathode, anode and electrolyte. “When you charge the battery up, the lithium ions move from the cathode to the anode. And when you discharge it, when you’re driving the EV, the lithium ions flow back the other way from the anode to the cathode.”
Since the anode of the battery is made from graphite, “it’s very important for EV rollout, for the rollout of energy storage systems, stationary storage … So, hugely important for the energy transition overall,” Montgomery said.
The market for the highly processed graphite used in batteries is growing quickly. Last year, demand was about 400,000 tons. By 2030, S&P Global Commodity Insights anticipates demand of about 1.7 million tons. The majority of both natural and synthetic graphite is produced in China, but there are graphite mines in countries including Brazil, Turkey, Russia, Mozambique, Madagascar and Tanzania.
Turning natural, mined graphite into a material that can be used in EV batteries is an intensive process. It involves micronizing and sphericalizing the graphite into tiny round pellets and then purifying those pellets using highly volatile acids. Synthetic graphite was historically preferred for battery anodes because of its superior purity and consistency to that of mined products.
The US is concerned about depending on foreign sources for critical strategic elements and has invested money in developing graphite facilities through the Inflation Reduction Act. In Europe, graphite may run afoul of the Carbon Border Adjustment Mechanism because the production of synthetic graphite is very energy-intensive.
Due to its low cost, graphite does not lend itself to “thrifting” or replacement in battery manufacturing. While silicon could replace graphite in battery anodes due to its superior energy density, it tends to degrade more rapidly, negatively affecting the battery’s lifespan.
Today is Monday, November 25, 2024, and here is today’s essential intelligence.
Charting the Future of India's Carbon Market
India is making strides in tackling greenhouse gas emissions by implementing the Carbon Credit Trading Scheme. In its formative phases, the scheme will prioritize the management of CO2 and industrial gases. In August, India unveiled a detailed blueprint to guide industries toward achieving specific emission reduction targets. This foundational plan paves the way for the CCTS, which is expected to launch in the 2026-27 financial year, with carbon credits becoming tradable shortly thereafter. By emphasizing emissions intensity, or reducing emissions relative to industrial output, India seeks to balance economic growth with environmental responsibility.
—Read the article from S&P Global Commodity Insights
Listen: MediaTalk | Season 2 | Ep. 40: Retail Holiday Spending Outlook Remains Mildly Merry
As the holiday season approaches, consumer spending is set to take center stage in 2024. Insights from the latest MediaTalk podcast highlight a cautiously optimistic outlook, with increased confidence among consumers across all income groups. Despite lingering concerns about inflation and rising debt, many consumers are ready to embrace holiday shopping with a renewed spirit as they not only buy gifts but also leverage holiday sales for everyday necessities. With e-commerce continuing to thrive, the integration of omnichannel shopping experiences is becoming crucial.
—Listen and subscribe to the podcast from S&P Global Market Intelligence
The Opportunity of Asset-Based Finance Draws in Private Credit
In today's market, financial innovation continues to drive change as private funding expands into a market for asset-based finance (ABF), which is enormous and largely untapped. With securitization already heavily used in the leveraged loan space, private credit firms are looking further afield at other types of assets. The potential market for private funding in ABF includes more than $5 trillion in consumer credit, along with the proliferating array of collateral in the esoteric asset-backed securitization space that stretches from intellectual property to hard assets.
—Read the article from S&P Global Ratings
Asian Refiners Expect Middle East Crude Suppliers to Defend Far East Market Share
Asian refiners expect major Middle Eastern crude producers to focus less on supporting oil prices but pay more attention to reviving their market share in the Far East next year as demand continues to exert more influence than supply on price trends, while plentiful US crude cargoes lure regional buyers. OPEC producers have been maintaining a tight supply strategy for a few years, but benchmark crude prices have formed a steady downtrend, while key Middle Eastern suppliers like Saudi Arabia have lost their Asian market share over the past couple of years.
—Read the article from S&P Global Commodity Insights
Global Chicken Consumption to Lead Protein Markets by 2027
By 2027, global chicken meat consumption is expected to surpass all other proteins with India, Africa and Vietnam leading, while growth in the EU and the UK moderates. This trend would be driven by rapid income growth and urbanization, alongside chicken's cultural adaptability and culinary versatility. Broiler production's scalability and efficiency further enhance its appeal compared to other proteins. Meanwhile, a declining population and higher per capita consumption will limit growth in the EU and the UK.
—Read the article from S&P Global Commodity Insights
Automotive Insights: Q3 2024 Canadian EV Information and Analysis
In the third quarter of 2024, Canada's ZEV market continued its upward trajectory, achieving a new milestone with a 16.5% adoption rate. This means that approximately 1 in every 6 new cars registered in Canada was a ZEV. This growth reflects a 14.4% increase in overall ZEV volume compared to the previous quarter, driven by a 15.1% rise in BEVs and a 12.4% increase in plug-in hybrid electric vehicles (PHEVs).
—Read the article from S&P Global Mobility
CERAWeek 2025 — Moving Ahead: Energy Strategies for a Complex World (March 10-14, 2025 | Houston, Texas)
CERAWeek is comprised of three mutually reinforcing platforms: The Executive Conference, the Innovation Agora and Partner Programs. The industry's foremost thought leaders convene to cultivate relationships and exchange transformative ideas. Our programs are designed to advance new ideas, insight and solutions to the biggest challenges facing the future of energy, the environment and climate.
—Register for the conference from S&P Global