Western lithium, graphite miners boost prices for ESG-friendly supply
By Ernest Scheyder
LOS ANGELES (Reuters) — Western lithium and graphite miners have started charging the electric vehicle (EV) supply chain higher prices for their material, meeting demand for environmentally-friendly and consistent supply that is not linked to China.
In presentations and interviews at this week's Benchmark critical minerals conference in Los Angeles, industry executives, consultants and investors touted the premium pricing model as a way to help prod development of non-Chinese supply, a goal of Washington, Brussels and other Western governments.
The surcharges mirror a plan from the rare earths industry as Beijing exerts control of the critical minerals market and some EV backers worry that weaker environmental standards among some Chinese miners could tarnish the industry's clean energy credentials.
China refines more than 90% of the world's graphite and last month said it will require export permits for the metal, the largest component of an EV battery.
Lithium, the lightest metal, is used to make a battery's positively charged cathode and prized for its ability to store energy. China is the world's largest lithium processor.
«There's a premium to secure material from North America,» said Patrice Boulanger of Nouveau Monde Graphite, which is building a Canadian mine and has a non-binding offtake with Panasonic (OTC:PCRFY) Energy. «We have the highest (environmental, social and governance) standards.»
Miners say the surcharges make investors more comfortable financing new projects, especially as Chinese rivals have been known to sell metals below prevailing market rates.
«For a company to make an investment decision here in the United States… there has to be an adequate return for that,» said Shaun
Read more on investing.com
