Producing and selling spherical graphite
In 2011, China Graphite built a spherical graphite processing plant to the west of the current beneficiation plant. It processes graphite concentrate from the beneficiation plant to produce spherical graphite, a graphite anode material used in lithium-ion batteries. The current production capacity is 5,200 tpa spherical graphite. Since the fourth quarter of 2021, the spherical graphite processing plant has been being upgraded. As at the end of 2022, the production capacity is 10,000 tpa spherical graphite.
We have been selling spherical graphite since September 2012, all of which with a carbon content between 95% and 99.5%. The sale of our spherical graphite generated represented approximately 53.6%, 45.1% and 49.7% of our total revenue for the three years ended December 31, 2019, 2020 and 2021, respectively. Model numbers of our spherical graphite (i.e. SG-10 being the spherical graphite with a radius of 10 μμm) are designated according to the size of the spherical graphite processed, with other model numbers designated according to the density, purity or shape of the spherical graphite. Within the SG-10 model, there may be many variances based on the density and purity which would have an effect on its selling price. Owing to such a wide and diverse of variances within one model, the revenue generated by the sale of our SG-10 spherical graphite accounted for approximately 71.0%, 83.9% and 48.6% of our revenue from the sale of spherical graphite and by-products for the three years ended December 31, 2019, 2020 and 2021. As by-products of processing our spherical graphite, we also produce and sell micro graphite powder and high-purity graphite powder.