LONDON, UK: Tirupati Graphite plc, a key player in the flake graphite market, has announced substantial progress in the production and qualification of high-purity jumbo flake graphite from its Madagascar operations. This announcement follows the company’s previous operational update on April 4, 2023.
Shishir Poddar, Executive Chairman, said: “Today’s announcement is validation of the Company’s efforts to maximise the use of its significant production assets to achieve sustained high-grade production and business development for sales of vital grades of this critical mineral to growing ex-China markets, a trend we are working to capitalise on as we execute our ramp up of production in Madagascar.
“The high grade 97%, jumbo flake material from primary processing produced without the use of chemical or other treatments is a technically challenging grade to produce and demonstrates the process design superiority in retaining jumbo flakes while achieving higher purity levels and the skill sets the Company’s team possesses. The Company continues to bolster its presence in growing markets such as Europe and North American to further support the sales growth of its products in these regions as it continues to enhance its outputs.”
Achieving a Technical Milestone
Tirupati Graphite has successfully commenced bulk production of 97% pure jumbo flake graphite, a technical feat not commonly achieved outside of China. This accomplishment underscores the company’s technical prowess and positions it as a leader in the graphite industry.
Prequalification and Business Development
The company has prequalified its high-purity product with a German buyer, leading to the successful trial of a full container load. Following this success, Tirupati Graphite received and fulfilled a final qualification order, shipping another container to the buyer. The shipments, supplied on standard commercial terms, reflect the premium nature of the product.
Market Impact and Future Prospects
The 97% pure jumbo flake graphite commands a premium price, over 25% higher than grades up to 94% purity. Regular orders from the buyer are anticipated to positively influence the company’s overall price realization. Additionally, Tirupati Graphite is engaging with other potential customers in Europe and North America, aiming to secure their high-grade, premium-priced products in these markets.
Strategic Focus and Market Expansion
Tirupati Graphite remains committed to enhancing its production capabilities in Madagascar and strategically expanding its business. The company’s efforts to supply significant volumes of high-quality graphite to European customers align with its goal to increase market share for its entire flake graphite product range.
Global Market Dynamics
The flake graphite market is evolving rapidly, driven by the energy transition and geopolitical shifts, particularly China’s export restrictions on natural flake graphite. Tirupati Graphite continues to field a growing number of inquiries from global markets, including China, as consumers seek alternatives to Chinese graphite sources.
Outlook on Graphite Demand
With extensive marketing efforts underway, the company is preparing for increased production from its Madagascar projects to meet the forecasted rise in global graphite demand. Recent market trends indicate a potential shortage of flake graphite in the coming quarters, highlighting the importance of producers like Tirupati Graphite in meeting the burgeoning demand outside China.
This strategic advancement by Tirupati Graphite plc represents a pivotal moment in the graphite industry, as the company leverages its technical achievements to cater to the global demand for high-purity graphite.
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