Leading Edge is considering restarting Sweden’s graphite mine
TSX-V-listed Leading Edge Materials has said that they are considering restarting production at their permitted and fully built Woxna graphite mine in Sweden, with reference to improved market conditions.
The mine and plant were restarted in 2014, but production was stopped due to unfavorable market conditions at that time. During this time, the company has focused on developing a planned downstream process to produce upgraded graphite anode material for the lithium-ion battery industry.
However, improved market conditions for traditional flake graphite products have been recognized as an additional potential opportunity, with the availability offering a relatively short time to production compared to other graphite developers.
Referring to an assessment by Fastmarkets, Leading Edge says that the prices of flake graphite in Europe are traded between $ 775 / h and $ 1,395 / h, depending on the flake size. This is about 40% higher than the prices a year earlier.
The company notes that prices have been driven by a growing demand with simultaneous delivery disruptions and sky-high shipping costs. A mine in Sweden would have an important competitive advantage in that it would be possible to transport products by truck to potential customers.
“By owning one of the few built and allowed graphite mines in the western world, we are pleased to be able to react quickly and take advantage of the accelerating strength of flake graphite prices. With natural graphite classified as a critical raw material by the EU, it would also show Europe’s ability to disrupt its dependence on raw material supply from other regions, says the CEO. Philip Kozlowski.
He added that restarting production at Woxna was seen as the first significant step towards a fully integrated production of graphite anode materials, according to the preliminary economic assessment in 2021.
A decision on whether to resume production will be announced “within a few months”.