Sector: Mining - Metals and Minerals :
News Release - June 16, 2017 05:10 PM ET
Saint Jean Carbon Completes Full Cell Graphene Lithium Ion Battery
NEW YORK, NY, June 16, 2017 /Sector Newswire/ - Saint Jean Carbon Inc. (TSX VENTURE: SJL) (OTCQB: TORVF) (Frankfurt: WNFN) this week announced it has completed a full cell graphene battery.
As impressive as those inventions are for the future, currently ~75% to 85% of the Company's time and efforts are spent on the green energy storage and green energy creation side of its business as those have immediate real-world demand with serious near-term monetization potential. On the green energy creation side SJL.V has graphene photo cells in the lab yielding 100% light energy flow through efficiency, this holds potential to lead to a new paradigm for solar cells. On the green energy storage side SJL.V is rapidly advancing toward serious monetization with its first large-scale SCCG prototype mill now under construction for a major electric vehicle manufacturer. Its proprietary SCCG technology has efficiencies that dwarf what others are capable of and has so impressed lithium-ion battery manufacturers that it is expected to translate into an off-take agreement for the Company to supply raw materials, grind, shape, and coat 150,000 tonnes per year of spherical carbon coated graphite for 20 years, generating $350 to $500 million/per year in revenue at capacity.
Additionally on the energy storage side of the business, the Company is involved in a collaborative effort that leverages its patents and expertise. This November-2016, within two weeks of Saint Jean announcing it has appointed the top Li-ion battery expert in the world, Dr. Zhongwei Chen PhD, MSChE, BS, as Chief Technology Officer, Saint Jean Carbon announced it is building the world's first recycled high performance Lithium-ion battery in cooperation with their main battery manufacturing partner. The battery will use recycled/upcycling material from an electric car power pack and the upcycled anode material from Saint Jean Carbon. This battery will prove the life cycle of the raw materials can be extended by being re-used over and over again, and help position Saint Jean as an integral player in the future of the energy storage sector (see related November 24, 2016 news release entitled "Saint Jean Carbon Building a Recycled High Performance Lithium-ion Battery"). Also, this January-2017 the Company announced it is building the first graphene based lithium-ion battery (see June 14, 2017 news "Saint Jean Carbon Completes Graphene Full Cell Lithium Ion Battery").
The Company was formed ~4 years ago to capitalize on the opportunities and advancements in graphene research and the growing enthusiasm for electric vehicles (which rely upon large quantities of specialized graphite for the anodes in lithium-ion batteries). CEO, Paul Ogilvie, is an individual rooted in technology success and also has a history of successfully advancing graphite mining projects to high valuation takeout. SJL.V is first and foremost a technology business, its graphite mining holdings should only be viewed as strategic back-up as the Company's M.O. is to treat raw materials as a commodity that can be sourced globally according to spec to feed end applications of the Company's technology. Everything the company does is geared toward ensuring it will have a part in meaningful final applications. The Company has built relationships at the highest level of research in the world and is on the forefront of innovation that will transform the future.
Graphene was only first isolated ~10 years ago. It is a thin layer of pure carbon, bonded together in a hexagonal honeycomb lattice. It is the thinnest compound known to man (at one atom thick), as well as the lightest. It is also the strongest compound discovered (100-300 times stronger than steel), is the best conductor of heat at room temperature, and also the best conductor of electricity known. Graphene has potential applications across a wide range of industries. Saint Jean is one of the most advanced in terms of production of graphene and in mid-2016 the Company was requested by the National Research Counsel of Canada to submit samples and help set the national standard for graphene production and quality. To date we are not aware of anyone else managing to meet the call to submit samples.
Intellectual Property Ownership
The patents we see contributing most towards an appreciation of share price value near-term are the two for spherical carbon coated graphite, they are 100% owned by St. Jean Carbon Inc. There are also large number of patents that the Company co-owns 50:50 with universities, these often do not get coverage in press releases. Anything the Company does with Western University, or Waterloo, and others are considered shared 50:50; SJL.V shares in ownership and (eventual) royalties 50:50, however important to note is that SJL.V retains exclusive first right of refusal to use it. On the patents that are 100% SJL.V owned, anything the Company does with the university that is done on an 'engagement basis', which means the Canadian government pays the university for SJL.V, the Company owns the technology and shareholders benefit from the research without the burden of dilution. To date on patents submitted no one has come forth and challenged or said they are doing it too. Important to note is that most of the R&D is accomplished via without shareholder dilution (e.g. See December 15, 2016 news release entitled "Saint Jean Carbon and Western University Receive NSERC Grant").
Overview of why Saint Jean Carbon Inc. (SJL.V) has potential for >50X market cap revaluation
1) High-speed Spherical Carbon Coated Graphite Mill - 100% Owned
The lithium-ion batteries for manufacturing plants being built NOW to meet expected demand will require steady and reliable supplies of spherical carbon coated graphite, and no one in the world is able to produce and deliver at sub US$2,000 per tonne except for Saint Jean Carbon Inc via its proprietary patented (pending) technology. The Company is targeting securing an off-take agreement for its technology, and are bound by confidentiality and non disclosure agreements from saying with who, but most people looking at their specifications of material are logically immediately able to take the leap and say its Tesla. Plus news of SJL.V appointing Dr. Zhongwei Chen PhD, MSChE, BS as Chief Technology Officer is very telling as he is known in the industry as the foremost expert on Li-ion battery technology in the world and consultant to several majors. The end result, bottom line, should see Saint Jean Carbon Inc. profitably get to companies in the like of Tesla in Nevada and see US$1,950 per tonne spherical coated carbon graphite and make US$600 to US$700 on every tonne.
Saint Jean Carbon has developed an exclusive patented manufacturing system that creates the material; jet-mill/grinding it, then shaping it, and coating it, all in one go, and then applying it directly to the anode that goes into a lithium-ion battery. The Company's mill is a process that will be situated at (or attached to) the battery plant facility of the electric vehicle manufacturer, in say Nevada. The off-take deal will involve SJL.V supplying the raw graphite materials according to spec, either by sub-contract or mining it themselves (if need be as a back-up); the company has well vetted detailed engineering models involving ~120 small high-grade high-purity graphite pits on its own properties. Graphite material that goes into lithium-ion batteries is 99.875% pure, it has no dampness to it, and all the impurities are eliminated from it. SJL.V has developed a system that crushes and grinds its ore, and air classifies it through a windowing system, further grinds it, and loads it to railcar for delivery to its processing mill. Ideally the Company can avoid using its own properties; SJL.V has been offered material by two very large Chinese producers of graphite at a base cost that would be the same as (or less than) the Company's cost to mine here in exchange for a cut of the high-graded material. SJL.V's strategy is to use others graphite first, if possible, as graphite is basically a commodity and the real value in graphite for the Li-ion anode is in its technological process. Regardless of the source, SJL.V will ensure the mine signature and finished material DNA are compatible, as unique and exacting specifications are required for all materials to work together in the end battery.
Leaving nothing to chance, SJL.V is retaining full control of the process, at least for this first off-take; the Company is expected to own the mill equipment, lease space (for free) at the manufacturer, supply its own raw material, and man its own equipment. There is an expertise that SJL.V brings to the table that no one else on the planet has proved they can replicate and majors have taken notice.
Fig. 3 (above) - Patent diagram for shapeing graphite.
The patent to spherically shape graphite and carbon coat graphite holds extreme latent value. Prior to SJL.V's patented process, and currently the way it is done today, is through mechanical fusion; think of a spec of graphite that is ground down to 20 μm (μm is a micrometer, A.K.A. micron, = one millionth of a meter), mechanical fusion grinds graphite without ever touching it, it jitters itself to shape, it works well but is seriously inefficient. What SJL.V created is a horizontal system that uses devices similarly to ailerons on an airplane that spin and are able to process voluminous amounts of material, yielding the same effect as mechanical fusion without the inefficiencies, enabling SJL.V to make per piece of mill equipment ~5,000 tonnes per year vs. requiring 50 pieces of equipment (using current technology) to produce that same amount. Much more efficient and economical.
Fig. 4 (above) - Patent diagram for coating graphite.
The milling process is actually comprised of two separate patented processes, one for shaping (as explained above) and one for carbon coating the natural graphite. A lithium-ion battery with natural graphite will outperform a synthetic graphite battery by about 35%, that's good, however natural graphite starts to break down on the edges of the anode. This problem is resolved by putting a carbon coating on the natural graphite particles, its one of the key sciences in a lithium-ion battery. The carbon coating is applied in a chamber via plasma and heat pulling apart some synthetic graphite and dropping the atoms of the carbon onto the graphite. The result is graphite that stays together on the edges of the anode. SJL.V's exclusive patent involves doing the process in a pressurized chamber and getting the material charged so it will magnetically attach the carbon coating to the graphite at high speed.
In the drawing you can see how the two pieces of equipment go together into one complete no man touch system from one end to the other. The big checkpoints here are that SJL.V has created a piece of equipment that will do a process at extremely high speed that no one else does and do so more efficiently from an energy standpoint, and a handling standpoint (no human touch).
October 25, 2016 - Saint Jean Carbon Commission Preliminary Economic Assessment [click to see full copy from source]
May 19, 2016 - Saint Jean Carbon Starts Commercial Construction of Spherical Coated Graphite Mill [click to see full copy from source]
November 9, 2015 - Saint Jean Carbon Files Patent for Spherically Shaping Graphite for Lithium Ion Batteries [click to see full copy from source]
To build the module for carbon coating spherical graphite, depending on the capacity and size fractions sought on the materials, the costs are of a low of ~US$3.9 million to a high of ~US$5 million. SJL.V is looking at a capacity now, as announced, of between 6,000 and 7,500 tonnes per year.
How big does this get? The modules are scalable. The offtake is for 150,000 tonnes per year for 20 years, and depending on the different size of materials and different engineering for them, there is between $350 million to $500 million per year from just one battery plant. SJL.V is aiming to net out ~US$600 to US$700 on every tonne. The offtake will likely restrict services to competing car manufacturers, but not solar plants (which happen to use more graphite than cars), and other select battery manufacturers.
Reality of production is fast approaching:
The mill is being built for an electric car company as a prototype/first-shot at proofing what is going on their anodes. The mill will continue as a rolling start to bigger numbers. When the investment community figures out that the process to supply such specialized graphite material onto an assembly line of a manufacturer is beyond the ability of most ordinary graphite mining entities, because they don't have the technological expertise and knowhow -- SJL.V will be recognized for what its potential is as top-dog in its field. Right now the Company is building the mill for one car company, and that company has one battery manufacturer -- the mill was announced to build material that they are prototyping on their end so that in one year, when they say "let's get all these materials to play together", SJL.V is going to be at the party saying "We have our prototype mill built to take our concentrate material through for you". At that time the two pieces of SJL.V prototype equipment on their own, alone in operation, will be worth significant amounts of money.
Revenue growth to begin and won't stop, SJL.V will be valued as a different kind of entity:
SJL.V envisions in 2017 it should be able to produce from a low of 2,000 to a high of ~3,500 tonnes of spherical carbon coated graphite. Times that by $US2,000 per tonne.
In 2018 we would expect to see SJL.V produce ~18,000 to 25,000 tonnes.
2019 onwards; skies the limits. This one offtake on its own is for 150,000 tonnes per year for 20 years. The ramp up from electric car companies and the Panasonics of the world are very bullish with straight line projections. The problem with forecasting a phenomena is that it is difficult, could be less, it could also be more. But what we do know is that the demand for SJL.V's proprietary technology will be immense.
2) World's First Recycled High Performance Lithium-ion Battery - Collaborative project with battery manufacturing partner
SJL.V announced it is building the world's first recycled high performance Lithium-ion battery in cooperation with their main battery manufacturing partner. The battery will use recycled/upcycling material from an electric car power pack and the upcycled anode material from Saint Jean Carbon. This battery will prove the life cycle of the raw materials can be extended by being re-used over and over again, and help to further position Saint Jean as an integral player in the future of the energy storage sector. The Company is involved in numerous collaborative efforts that leverage its patents and expertise. This announcement, regarding the building of the recycled high performance Lithium-ion battery, falls on the heals of Saint Jean announcing it has appointed the top Li-ion battery expert in the world, Dr. Zhongwei Chen PhD, MSChE, BS, as Chief Technology Officer.
Excerpt of recent (November 24, 2016) news from Saint Jean Carbon:
See http://www.technologymarketwatch.com/sjl.htm for further insight on Saint Jean Carbon and:
3) First Graphene Based Lithium-ion Battery
4) Energy Creation - Co-owned with Western University
5) Graphene production - 100% owned
6) First Superconductivity Room Temperature Wire - 100% owned
7) Diagmagnetic graphene - 100% owned
8) Diabetes Glucose Meter - 100% owned
9) Magnetoresistance Graphene - Co-owned
The following additional research links have been identified for further DD on Saint Jean Carbon Inc.
This release may contain forward-looking statements regarding future events that involve risk and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual events or results. Articles, excerpts, commentary and reviews herein are for information purposes and are not solicitations to buy or sell any of the securities mentioned.
SOURCE: Sector Newswire editorial