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Super strong The high-tech material that could change the world Page 24

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HOW TO MAKE IT, HOW TO KEEP IT, HOW TO SPEND IT

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The miracle material that could change the world Graphene is 200 times stronger than steel and more conductive than silicon. Matthew Partridge investigates how to profit from it

In the process, they solved a problem that researchers had been wrestling with for several decades. A block of graphite consists of individual layers of carbon atoms arranged in a honeycomb pattern, with each layer held together with its neighbours by weak bonds that allow them to be easily separated or slide over each other. Scientists studying graphite had long been interested in producing single layers of graphite – which are known as graphene – but had been unable to do so in a way that did not affect the structure.

“Some have even speculated that graphene could be used to build a lightweight elevator into space“

The breakthrough by Geim and Novoselov, which happened in 2004, allowed the properties of graphene to be studied for the first time. And subsequent research showed that it had several remarkable properties. It is more than 200 times stronger than the comparable weight of steel. It is very good at conducting both heat and electricity. It has high lubricity, which means it is very good at reducing friction. It’s transparent, flexible and impermeable. This all means that it could have a vast range of applications. Imagine computers that were hundreds, or thousands, of times faster than today’s fastest models, or bridges made up of layers as thin as paper. Some have even speculated that graphene could be used to build a lightweight elevator into space, doing away with the need for rockets. While some of these ideas may be more science fiction than reality, it’s clear that the material has huge potential.

Starting from a blank slate

produced in a way that can create much larger structures without affecting the core properties of the material. Hence he sees its greatest short-term potential in the areas that don’t require a huge mass. Devising paints and coating that can increase both the strength and water resistance of an item is one area. Another is making better lubricants that can reduce friction, cutting down on wear and tear, and therefore increasing the lifespan of components. A third area of application is in making composites more robust. Indeed, one sub-sector that has been an early adopter of the technology is the sporting-goods industry: for example, graphene is being added to fishing rods in order to make them more robust. Fishing rods and paints may seem small steps compared with dreams of elevators into the sky, but Mabbitt is quick to emphasise that these are only the tip of the iceberg. Over the past decade, a large number of companies have started to enter the area, and those who have started to use graphene in their products are finding “very rapid adoption benefits”. There are also indications that it has a huge amount of potential in transport and aeronautics, where demand is high for materials that can maintain performance while drastically reducing weight.

Five years away from the mainstream

Others involved in the area are even more optimistic about the near-term prospects for the commercialisation of graphene. Products that use the material have already started to enter the market, but “not on an enormous scale”, says James Tour, professor of chemistry, materials science, nano-engineering and computer science at Rice University in Houston, Texas, who holds the third-largest number of graphene-related patents in the world. However, within the next two years this trickle is likely to become a flood as companies become more confident with the technology. Within five years we should reach a tipping point where increased awareness of graphene’s potential means that it will become a major component of many products.

In some cases, graphene will replace established Commercialisation of that potential remains some materials, he says. For example, the touchscreen way off. The whole industry is “starting from a displays in smartphones use an indium tin oxide blank canvas”, says Jon Mabbitt, the chief executive coating. The problem is that indium tin oxide is officer of Applied Graphene Materials, one of the not only relatively expensive, but leading companies in the field. global supplies are limited. The There are two main challenges in electronics giant Samsung, which turning research into graphene has been funding a huge amount into commercial applications. The of research in South Korea, is first is extracting (or producing) The potential size of starting to use graphene graphene at a commercially viable the graphene market by now as a substitute material. Not price. The second is to combine only does this reduce costs, but the individual layers of graphene the end of the decade

$100m

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©Alamy

It was a roll of sticky tape that helped Andre Geim and Konstantin Novoselov at the University of Manchester win the Nobel Prize for physics in 2010 – and usher in the development of a new material that may change the world. The two researchers stuck tape onto blocks of graphite – the material used as “lead” in pencils – and peeled it off to remove very thin layers of graphite. They then stuck more tape on top of the tape and peeled it off, to produce an even thinner layer. After repeating this many times, they dissolved the tape in solvent, ending up with layers just an atom thick.

©Alamy

New and better paints is one area graphene could make a big splash it also improves performance, since indium isn’t that flexible. Even where graphene isn’t a complete replacement, it still can be used in conjunction with other materials to improve performance. For example, graphene is unlikely completely to replace silicon in transistors, because it doesn’t have a “band gap” (put as simply as possible, this means that the electrons in graphene are structured in a way that means you can’t vary the current passing through it, which is a problem given that’s how you control electrical circuits). However, if you add even a small amount of graphene to silicon you can dramatically improve conductivity. This improves the processing power of computer chips. Similarly, batteries that have graphene in them have a longer lifespan than those without, as well as allowing lithium batteries to deal with higher temperatures. Tour also sees substantial progress in the production of graphene. For example, Samsung has developed ways to grow significant amounts of high-quality material at high temperature. In cases where the quality of the graphene isn’t so important, there have been significant reductions in the production costs. Dotz Nano, a firm with which Tour works, has devised ways to use coal to produce graphene-based “quantum dots” (tiny particles a few nanometres wide that have different properties to larger particles). Even the cheapest graphite from China costs $800 per ton, but coal can be as little as $10 per ton, meaning a huge reduction in costs. moneyweek.com

Commercial interest in graphene is approaching a tipping point, says James Baker, business director of the National Graphene Institute (NGI) at the University of Manchester. The NGI was set up with funding from the UK government and the European Union to make sure that scientific discoveries in this field were exploited by business as quickly as possible – in contrast to, say, carbon fibre, where commercialisation of research took much longer because “the scientific discoveries stayed within academia for the first decade”. Initially, Baker was mostly working with start-up companies, as the bigger firms were “slow to engage”, but that’s now changing. “With near term applications coming to market, their interest and involvement is increasing,” he says, reeling off an impressive list of corporate partners from small British firms, such as Haydale and Thomas Swan, to huge engineering groups such as Rolls-Royce and Siemens. Baker is particularly enthusiastic about the level of interest from the aerospace industry. Previously, the sector had seen graphene solely as “a long-term investment” rather than an immediate priority, he says, but firms now see an opportunity to save large amount of time and money by building better tools that could cut manufacturing times. The NGI is working with firms such as Airbus and BAE. But despite the entry of these larger firms, Baker

“Commercial interest in the potential of the material is approaching a tipping point“

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cover story Reinforced Plastics. The total carbon composites market reached $17.9bn in 2015 and thinks that there is still a “role is also expanding quickly. for all types of company”, Paints and lubricants could including start-ups, in be another key area. For commercialising graphene. example, the global paints Indeed, several bigger firms and coatings market is worth are trying to make up for lost $128bn, and expected to hit ground by snapping up the $173bn by 2020, a growth smaller players. rate of around 6% a year, according to PS Market What’s the potential? Research, while the global While graphene may be lubricants market will be exciting, it remains niche for worth $68bn a year within now, cautions Paul Lee, head the next five years, according of global research at Deloitte, to Grand View Research. a consultancy. He estimates But perhaps the biggest that the size of market is still single sector where graphene in the tens of millions and have a significant impact is will possibly grow to more the global semiconductor than $100m by the end of industry, which is worth the decade. As relatively new Graphene: the potential is near limitless $354bn a year, according to technology, it is prone to PwC. Quantum dots hold particular promise. BCC overblown claims, he says: for example, the idea of predicts that global sales of these should reach “producing graphene in your kitchen” as one firm $3.4bn by 2021. has trumpeted, is correct “only if that kitchen has a laboratory attached”. In short, investors shouldn’t Finally, there is the strong possibility that demand get carried away yet. for graphene could develop in ways no one could expect. “Our own bias is always to try to apply Nonetheless, the markets for the materials that new materials and discoveries to existing problems graphene is attempting to complement or substitute and applications,” says Tomas Palacios, a professor entirely are vast and may give an idea of its longat MIT. When Herbert Kroemer invented the term potential if the technology is widely taken up. semiconductor laser, nobody knew that a few Composites such as carbon fibre are one of the key decades later it would enable the optical fibre and opportunities, say both Baker and Mabbitt. The the internet, he points out. “The extreme properties global market for carbon fibre reached $2.15bn of graphene and other two-dimensional materials in 2015, and is growing at a rate of around 10%will enable similar breakthroughs.” 13% a year, according to the German Federation of

“The markets for the materials that graphene is attempting to complement are vast, giving an idea of its long-term potential if the technology is widely taken up“

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Five ways to invest in graphene Firms such as Samsung Electronics and Airbus could be beneficiaries of graphene technology. Samsung is planning to incorporate graphene in a wide range of products, starting with smartphones and high-end televisions. Airbus is working to use graphene to produce lighter, tougher composites for its planes that can reduce total fuel costs and increase safety. However, while you could make an investment case for both these stocks and many similar companies, their fortunes depend on far more than the commercialisation of graphene. If you want to invest directly in the sector, it inevitably means looking at small, early-stage companies, most of which are still loss-making. So it goes without saying that this only suitable for investors who are willing to take risks with a small part of their portfolio. As more universities and companies spend time and money researching graphene, they will have to spend money on sophisticated tools to do so. CVD Equipment (Nasdaq: CVV) makes equipment that puts chemicals onto very thin layers of film. This is used in the production of solar cells, semiconductors and coatings. CVV makes a specialised

MoneyWeek

27 January 2017

range of machines that are used to produce graphene, under the brand name First Nano. It trades at around 15 times current earnings.

is with a fishing rod manufacturer, but it is working with 16 a marine coatings firm, James Briggs, 14 which is due to launch 12 a graphene-based Haydale (Aim: product later this 10 HAYD) is a specialist year. Like Haydale, 8 in processing and AGM is currently not 6 handling graphene making a profit, but a 2012 2013 2014 2015 2016 and similar materials, successful secondary while its subsidiary, offering means that Haydale Composite it has plenty of cash Solutions, is involved in hand. Regular in the production of composite materials. MoneyWeek contributor Dr Mike Tubbs It is loss-making, but there is a chance recommends listed venture capital firm that it might turn a profit for the first IP Group (Aim: IPO), which holds large time later this year. It has recently begun stakes in a wide range of university negotiating agreements with other spinouts, including AGM. companies, such as Huntsman Advanced Materials and FlowtiteTechnology, to Finally, Dotz Nano (Sydney: DTZ) uses incorporate graphene into their products. coal to produce graphene quantum dots. It has research partnerships with Rice Applied Graphene Materials (Aim:AGM), University, where James Tour, its chief run by Jon Mabbitt, was spun out of scientific advisor, works, and with Benresearch at the University of Durham. Gurion University in Israel. This month It both produces its own graphene it concluded a marketing and sales deal powder and works with other firms with Strem Chemicals, which should help who want to use graphene in their it sell its products around the world. Like products. Its main collaboration so far Haydale and AGM it is running at a loss. 18

CVD Equipment US dollars

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