1. In November 2022, Frost & Sullivan put forward a recommendation for Graphjet Technology (GTI) in the global Graphene industry.

GTI is the world’s first and only company to have patented technology to recycle palm kernel shells, generated in the production of palm seed oil, can produce single layer graphene, artificial graphite, and graphene-based anode materials.  

GTI can manufacture graphene that is of higher quality than currently available and at a price that is 80% lower than the current market price. In terms of environmental protection, the resource supply of palm kernel shells could achieve sustainable green and recyclable regeneration to produce graphite and graphene which are now classified as critical raw materials. Due to using palm kernel shells as the raw material, CO2 emission during the whole graphite production of GTI is only 2.95 kg CO2 eq which is at least 70% lower than the current supply chain level.

2. Responsibly Sourced Material

GTI is only sourcing the waste, palm kernel shells from licensed Roundtable on Sustainable Palm Oil (RSPO) producers. According to RSPO, when palm oil is produced sustainably, it helps to halt deforestation. Deforestation doesn’t just destroy trees. It displaces wildlife and local communities that depend on natural resources for their livelihoods, sustenance, and traditions. Plus, it has negative impacts on the wider environment, including air and water pollution, and soil erosion.

When sustainable palm oil is produced in line with RSPO Standards, forests with areas of High Conservation Values (HCV) and High Carbon Stock (HCS) are protected and managed. This helps protect the habitats of many different species of endangered flora, animals and birds – from Sumatran tigers to South American macaws.

3. Double Acts- Biden’s Inflation Reduction Act (IRA) and EU Critical Raw Materials Act (CRMA)

IRA – Only electric cars with batteries and raw materials procured in North America or friendly countries will get tax credit. The current main supplier of Critical Materials, China is obviously not on this list.

The United States and Malaysia have a long history of successful engagement under the bilateral Trade and Investment Framework Agreement (TIFA), as well as at the World Trade Organization, with ASEAN, and at the Asia-Pacific Economic Cooperation (APEC) forum. Bilateral trade in goods with the United States was worth $71.4 billion in 2021. Malaysia is the United States’ 17th largest trading partner and the second-largest trading partner among the 10 ASEAN members, after Vietnam. The United States is Malaysia’s third-largest trading partner.

CRMA created a list of strategic projects in processing, mining and recycling but mining is no longer attractive to European communities and civil society organisations which are concerned about the impact on water, land and people’s livelihoods.

Malaysia is an important partner for the EU. Malaysia is the EU's second largest trade partner in the Southeast Asian region, whilst the EU is Malaysia's fifth largest trading partner. In 2020, the EU imported €24.7 billion (RM116 billion) from Malaysia and exported €10.5 billion (RM49.35 billion) to Malaysia. 

EU-Malaysia relations go beyond trade. The EU supports a wide range of cooperation projects that benefit Malaysia in areas such as higher education, human rights, and sustainable economic development. Malaysian authorities and civil society organisations receive EU cooperation funding under different programmes.

4. Malaysia National Graphene Action Plan 2020 (NGAP 2020) and Commitment of Ministry of Science, Technology, and Innovation (MOSTI)

NGAP 2020 is the result of an extensive collaboration between the Malaysian government, private sector companies, domestic and international research institutes, and academia to assess how the country can benefit from the potential of graphene:

• The potential to contribute to achieving additional gross national income impact of more than RM20 billion and help create 9,000 new jobs for these industries in Malaysia.

• Market size for lithium-ion battery/ultracapacitor: USD 3 billion global sales at addressable market size and USD 5 billion global sales at downstream market size.

• Market size for conductive: Graphene conductive inks for Radio-frequency identification will contribute USD 1 billion global sales at addressable market size and USD 3 billion global sales at downstream market size.

In August 2022, MOSTI committed to ensure the graphite and graphene market in Malaysia is of a global standard and encouraged the graphene commercialisation to the global graphene market, which is estimated at US$267 billion in the next five years. MOSTI’s minister also commented that in the long- terms, the marketing of graphene produced by GTI will benefit Malaysia because it has the potential to supply local companies with graphene products under ‘Graphenovation’ programmes and it will also enable Malaysia to become an exporter of Graphene to the world.

5.  The Battery Passport and World Economic Forum

The Battery Passport is a digital representation of a battery that conveys information about all applicable environmental, social, and corporate governance (ESG) and life-cycle requirements based on a comprehensive definition of a sustainable battery. Its concept launched at the World Economic Forum, and it’s also help align the transport and power industries with the goals of the Paris Agreement by 2030.

Julia Poliscanova is a senior director at Green Transport Group Transport & Environment. She is also on the board of directors of the Global Battery Alliance and is an advisor to the board of the Vulcan Energy Resources. Below is her opinion on 30th November 2022 in Benchmark Source:

Europe will soon require a “battery passport” that traces where and under what conditions battery minerals were produced and will mandate requirements for batteries sold on the EU market, such as carbon footprints and percentage of recycled content in batteries.

Europe should work with like-minded countries like the US, Japan and South Korea to turn this into a joint standard across some of the largest electric vehicle markets. This will bring the scale to change practices globally.

Creating a similar track and trace standard for all raw materials will take time.

But the Critical Raw Materials Act can already require all suppliers to measure and report their carbon emissions. This will reward those who have invested in better technology, as well as recyclers.

Finally, someone should be responsible for making all this happen. Recognising the importance of nuclear fuel, Europe created the EURATOM agency in 1957. We need a critical metals authority in 2022. This should coordinate the 27 EU governments’ efforts, ensure high standards are met and oversee joint purchasing or stockpiling across the Union.  

Europe can’t do it alone. Global markets, including China, will be needed for scale, innovation and competition. But we should not be naive. The Critical Raw Materials Act, if done right, can ensure resilient and sustainable supply for the green transition. It should also help improve the way in which we source metals and bring us closer to the responsible global supply chains we all want.

In December 2022, GTI announced that it has become a part of the World Economic Forum New Champions Community, a group of purpose driven dynamic mid-size, high-growth companies that are championing new business models, emerging technologies, and sustainable growth strategies in the Fourth Industrial Revolution to create a better future. GTI's sustainability goals align directly with the missions of the World Economic Forum and the most forward-thinking corporate citizens around the world.

6. World Investment Report (WIR) 2022- Climate Action in Capital Markets is Urgent 

Graphjet Technology will be listed on NASDAQ under the ticker symbol ‘GTI’ with a valuation of $1.5 billion. The white paper from Frost and Sullivan and its overview on the positive and sustainable impact on ESG came into the right timing to show that GTI can provide the best solution to the world investment capital market.

Stock exchanges are playing an important role in helping their market navigate the low-carbon transition. Global efforts to decarbonise the world’s economies have important implication for business and the investment community. From the 2022 report, the focus now is on strengthening the integrity of sustainability-themed products to address green and sustainability. The growth in sustainable bond market, sustainable funds & asset and ESG related stock exchange are rapidly increasing. Please refer to the figures below which available from the WIR 2022 report.

Click below for original publication version from Linkedin-PatrikTeh