Northern Graphite Corporation is an Ottawa-based Canadian mine development company that is listed on the TSX Venture Exchange under the symbol "NGC" and also trades on the OTCBB under the symbol "NGPHF".
Northern Graphite has a 100% interest in the Bissett Creek graphite deposit located in southern Canada, relatively close to all required infrastructure. Bissett Creek is an advanced stage project that has a Full Feasibility Study and its major environmental permit. Subject to the completion of operational and species at risk permitting, which are well advanced, Northern could commence construction in 2018 pending financing. The Company believes Bissett Creek has the highest margin, best flake size distribution and lowest marketing risk of any new graphite project, and has the added advantages of low capital costs and realistic production levels relative to the size of the market.
Graphite is the anode material in lithium ion batteries, a US$20 billion market that is growing at over 20 per cent per year. To date this growth has largely been from the proliferation of small devices as such as cell phone, cameras, lap tops and power tools. However, electric vehicles and grid storage involve much bigger batteries and much greater potential demand for graphite. Substantial new graphite supplies will be required even if EVs only achieve a small percentage of the new car market.
China produces 70% of the world’s graphite and is seeing production and export growth levelling off, costs increasing and quality declining. China is building a graphite stockpile that by 2020 will equal 80 per cent of its annual production which indicates they see a supply problem looming. Both the European Union and the USA have both named graphite a supply critical mineral.