Although we currently live in a period of unprecedented innovation, pioneering technologies alone is not enough to secure commercial success. Due to our interconnected economies, supply chain efficiencies have never been more crucial. As the novel coronavirus pandemic proved, even the most developed nations are surprisingly vulnerable to disruption.
Therefore, the most relevant companies of tomorrow won’t just be the raw innovators. Instead, it’s vitally important for tech firms to seek novel, accretive and practical solutions for pressing needs. One of the most groundbreaking companies doing exactly this is First Graphene (ASX:FGR, OTCMKTS:FGPHF).
Specializing in research and development of graphene — a wonder material known for its small size (consisting of a two-dimensional layer of atoms) and incredible strength — First Graphene is also a force multiplier. This attribute was in full effect when the company announced a one-step process that converts petroleum feedstock (raw materials) to graphite and graphene materials.
Utilizing hydrodynamic cavitation technology, the process generates “green” hydrogen as a byproduct, so called because of the lack of carbon dioxide emissions. Most importantly for FGR stakeholders, the procedure is exclusive to First Graphene, which levers patent protection.
While First Graphene CEO Mike Bell noted that the process is still a bit away from commercialization, the potential hydrodynamic cavitation offers incredibly positive implications for the petroleum industry. Primarily, as consumers shift toward electric vehicles, demand for lithium-ion batteries — which commonly utilize graphite anodes — will increase while demand for petroleum-based fuels will decrease.
However, First Graphene’s patented process can restore relevance to the oil industry, facilitating for petroleum an alternative (and cleaner) application. Beyond the scientific, environmental and commercial implications, there are geopolitical factors to consider as well.
Mainly, China is the world’s largest graphite producer as of 2020 data, producing 650,000 metric tons. According to the U.S. Geological Survey, China accounted for 62% of world graphite mining last year. The next biggest producer, Mozambique, is a distant second at 120,000 metric tons produced.
Regrettably, the present difficulties with China’s relationship with the international community poses threats to the graphite supply chain. But irrespective of the geopolitical situation, it’s never smart to be wholly dependent on any one source for critical raw materials.
Therefore, First Graphene is in a distinct position to provide necessary solutions for the long haul. Better yet, the investment community seems to recognize this potential, with FGPHF stock moving up 15.6% over the trailing month (as of the close of April 30, 2021).
Currently priced at only 21 cents, FGPHS stock is one of the most compelling high-risk, high-reward investments you can make. With myriad patents and products under its belt, FGR could very well be the first company to bring graphene to true commercial viability.
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