TSX-V-listed Northern Graphite has resumed processing ore at Lac des Iles (LDI), North America’s only producing graphite mine, on the back of rising market demand.
The LDI mine and plant were temporarily placed on care and maintenance during the second and third quarters of 2023 amid challenging markets and lower prices for its products, while the company continued to supply customers from stockpiled inventories.
“What we saw starting in the third quarter was that customers were really coming off the sidelines to secure supply for the year after a hiatus in the first half,” said Northern CEO Hugues Jacquemin.
“With sales volumes up more than 25% in the third quarter, together with what we are forecasting into the fourth quarter and next year, we believe there will be continuing strong demand for our product, and we have resumed processing at LDI to make sure we have continuous supply.”
Demand picked up sharply after China reinstated electric vehicle (EV) sales incentives at the end of last year. Last month, China also announced it would start imposing controls this December on certain graphite exports used in battery making, which will further drive supply concerns.
Jacquemin said that Northern had immediate capacity available to supply the market and that it had the ability to scale quickly its Okanjande mine in Namibia.
“As the only producer of graphite in North America, we are in a critical position, more than ever, to service graphite demand from North American battery makers,” said Jacquemin.