What is the origin of graphene?

Graphene’s origin story is by now well known. The 2D material was first produced in 2004, when two professors at the University of Manchester used Scotch tape to peel flakes of it off a chunk of graphite.

The story gives the impression that it’s easy to make graphene, but that’s not entirely true. The Scotch tape method, while a fun party trick, can only produce a very small amount of graphene — certainly not enough to use commercially.

How is graphene made?

The Scotch tape method of making graphene is known as exfoliation, and there are other ways to create graphene via exfoliated graphite as well. For instance, a diamond wedge can cleave graphene layers.

But what are some other ways of making graphene? Currently, the most popular method is chemical vapor deposition (CVD). The deposition process involves a mix of gases reacting with a surface to create a graphene layer. The process creates high-quality graphene, but the graphene is often damaged when it comes time to detach it from its substrate.

Looking at the process in greater depth, Graphenea states that another problem with CVD is that it’s difficult to create a totally uniform layer of graphene on a substrate. Graphenea also notes that much work is being put into reducing problems with CVD. For example, scientists are experimenting with treating the substrate before the reaction that creates graphene takes place. Even so, it’s expected to take a long time for the wrinkles to be smoothed out.

The Graphene Flagship identifies a number of other ways of making graphene, including direct chemical synthesis; the material can also be made by putting natural graphite in a solution.

Some of the latest innovations in graphene creation don’t involve the use of chemicals and can be conducted in the open air, as opposed to in vacuums. One method that was patented in 2017 is able to create larger quantities of graphene using acetylene, oxygen and a spark plug. Unfortunately, this process creates unrefined chunks of material and not sheets, meaning more money must be spent to make the graphene chunks useable.

In 2021, the Indian Institute of Technology Patna developed a way to produce graphene using a plasma gun; it’s possible it will prove to be a cheaper, yet scalable route to producing high-quality graphene material. The method has been shown to produce single-layer graphene 85 percent of the time without hazardous chemicals or expensive solvents, and estimates show that doing so only costs about US$1.12 per gram of graphene.

In mid-2022, chemical manufacturing company CleanGraph announced its proprietary process for transforming graphite into graphene, saying it had been developed over the past four years with the help of partnerships with market leaders in the construction industry and prominent universities. This method of producing graphene reportedly reduces the environmental impact by 99 percent compared to traditional graphene production.

‘Expanded graphite is a layered nanocarbon material, which is produced at industrial scale by oxidative intercalation and high-temperature expansion of natural graphite. CleanGraph is a novel proprietary process to chemically modify graphite into various forms of graphene in a faster, more productive and ecologically friendly way,’ as per the company.

Along with construction materials, the graphene produced by this method can also be used for heating, battery technology and as a sorbent.

More recently, in late 2023 NanoXplore (TSX:GRA,OTCQX:NNXPF) unveiled a new proprietary large-scale dry process for manufacturing graphene based on advanced exfoliation technology. It has a lower CAPEX compared to liquid-based exfoliation methods.

‘The technology finds potential applications in batteries and lightweight composites, enhancing its appeal in cutting-edge industries,’ states the company. ‘This new manufacturing process also opens doors to a myriad of applications, including plastic pipes, geosynthetics, recycled plastics, concrete, drilling fluids, and insulation foams, among others.’

Click here for a deeper dive on companies developing graphene and graphene products.

What factors impact graphene cost?

Getting an understanding of how graphene is produced is crucial to understanding graphene cost. That’s because the way in which graphene is made has a major impact on how much it ultimately costs.

Echo Zhang, founder of China-based graphene technology company GrapheneRich, explains that CVD and liquid-phase exfoliation are the most expensive methods due to the ‘advanced equipment and high energy consumption required.’ Meanwhile, the chemical reduction of graphene oxide is cheaper but may produce lower quality material.

Graphene oxide, which has advanced composite, biotechnology and water filtration applications, can cost between US$100 and US$500 per kilogram. ‘The price can vary depending on the oxidation level, production method, and supplier,’ Zhang states.

Graphenea also highlights that while graphene oxide is relatively inexpensive to produce, its lower quality means it can’t be used in batteries, flexible touch screens and ‘other advanced opto-electronic applications.’

In contrast, CVD graphene, which Zhang calls ‘top-tier graphene’ resulting in a ‘high-performance material with excellent properties,’ fetches upwards of US$10,000 or more per kilogram. Its often used in advanced electronics and energy-storage systems.

‘Methods like CVD, which produce high-quality, high-purity graphene, are generally more expensive than liquid-phase exfoliation or reduction of graphene oxide,’ Zhang explains. ‘The production method affects both the quality and the cost of the final product.’

Commercial-grade graphene can be produced in larger quantities, resulting in a price range of US$100 to US$1,000 per kilogram. This grade of graphene is used in energy storage, sensors and composites. ‘These prices depend on the production scale and the quality of the graphene being produced,’ Zhang states.

The issue, of course, is that with few commercial applications for graphene yet available, few end-users are looking to buy the material in large quantities.

What is the future of graphene research?

Those involved in graphene research hope that ultimately more commercial applications for the material will be developed, spurring advances that will make cost-effective mass production of the material a reality.

Graphene products are making their way into next-generation electronics such as flexible and foldable screens, enhanced batteries and ‘lightning-speed’ computers.

Graphene can also be used to create more fuel-efficient cars, faster and lighter aircraft and paint that could end deterioration of ships and cars. Overall, there’s no shortage of applications for graphene products.

Graphene’s impressive properties and the fact that it’s made from carbon, much like human bodies, makes it well suited to biotechnologies, including tools that can help healthcare professionals scan a patient’s biosignals quickly, accurately and safely.

“Graphene is a single layer of carbon molecules,” explained Dr. Kiana Aran, chief scientific officer at Cardea Bio, and Keck Graduate Institute associate professor of bioengineering. “Everything in our body is made of carbon. It’s the most compatible material we can find that has amazing electronic properties. You can build electronics and conjugate with biology, without impacting … biology and without biology impacting it.”

Researchers at the Georgia Institute of Technology have created the first functional semiconductor made from graphene. As an alternative to silicon, the breakthrough has the potential to allow for smaller and faster electronic devices, which may have applications for quantum computing.

In terms of market growth, Grand View Research notes, ‘Market growth stage is high, and pace of the market growth is accelerating. Graphene market is characterized by a high degree of innovation owing to rising advancements driven by factors including research and development. Subsequently, innovative applications are constantly emerging, disrupting existing industries and creating new ones.’

The market research firm projects that the graphene market will see revenues grow at a compound annual growth rate of 35.1 percent between 2024 and 2030 to reach US$1.61 billion. The automotive, aerospace and medical industries are the core drivers of demand for the material. Graphene’s role as a powerful catalyst in the chemical industry is also expected to contribute to increased demand for the wonder material on a global scale.

What is satellite internet?

A satellite internet connection transmits and receives data via a network of near-Earth satellites. Though this technology isn’t new, it has evolved considerably over the past several years. At the time of its inception, it was generally only used by subscribers in remote areas who had few other options for connectivity.

The history of satellite internet traces back to 1962, with the world’s first commercial communication satellite. Known as Telstar 1, the satellite was launched by NASA in response to Russia’s successful launch of the satellite Sputnik 1. It had a short life, however; Telstar launched one day after high-altitude nuclear weapons testing, and radiation from the tests damaged electronics on the satellite. It was only operational for seven months before it was rendered inoperable.

Interestingly, the idea of transmitting information via satellite wasn’t new at the time of Telstar’s launch. Decades earlier, astronautics theorist Herman Potočnik first proposed the concept of geostationary orbital satellites in his 1929 book ‘Das Problem der Befahrung des Weltraums: der Raketen-Motor,’ which translates to ‘The Problem with Space Travel: the Rocket Motor.’ Renowned futurist Arthur C. Clarke would later cite Potočnik’s work in a 1945 paper envisioning satellite communication.

The first real use of satellite internet would not occur until the late 20th century via the Teledisc project, funded by Microsoft (NASDAQ:MSFT). First proposed in 1994, Teledisc planned to establish a network of low-orbit broadband satellites. Unfortunately, the project was rendered defunct in 2002 shortly after the failure of two similar ventures, Iridium and Globalstar.

One year later, in 2003, French satellite operator Eutelsat became the first company in the world to launch a successful satellite internet project. Since then, multiple service providers and telecommunications companies have dabbled in satellite connectivity. However, it has largely lagged behind its technological peers, primarily only seeing use in particularly isolated regions.

To explain why, we need to first explain the different types of internet. The two most common are land-based connections and cellular or mobile connections.

Landline internet uses telephone lines, coaxial cables or dedicated fiber-optic cables to send and receive data from a modem or router. This device then serves as an access point, allowing everything from computers to smart home appliances to connect to the internet. Mobile internet, meanwhile, leverages nearby cell phone towers to beam data directly to and from connected devices.

Traditional satellite internet is something of a fusion between mobile and landline, albeit over a vastly larger distance. It leverages a satellite dish connected to two modems. One modem is used for sending data and the other for receiving.

Historically, speed and capacity represent the two most significant drawbacks to satellite internet. Most satellite internet service providers only support speeds between 25 and 300 megabits per second (mbps). By contrast, landline fiber internet is capable of speeds up to 5 gigabits per second (gbps). Satellite internet also tends to be far costlier than a comparable landline connection, with higher latency and lower caps on data usage. It may also suffer from issues with reliability. Lastly, satellite internet may suffer from interference due to factors such as terrain or canopy coverage.

That brings us around to what makes Starlink exciting. Although not yet competitive with landline internet in terms of cost, the company offers considerably higher data caps and speeds than any other provider on the market — up to 500 mbps with a 1 terabyte cap. Starlink’s low-orbit satellites are also less vulnerable to geographic interference while offering more consistent and reliable coverage.

Does Starlink have an IPO date?

At the time of this writing, Starlink is not publicly traded, and there is no concrete date for a Starlink IPO. Hints of a possible Starlink IPO originally came from several tweets made by Musk in 2021.

‘Once we can predict cash flow reasonably well, Starlink will IPO,’ he explained at the time. ‘(It will be) at least a few years before Starlink revenue is reasonably predictable. Going public sooner than that would be very painful.’

Musk added later that year that Starlink’s parent company SpaceX ‘needs to pass through a deep chasm of negative cashflow over the next year or so to make Starlink financially viable.’

At the time, Musk said a Starlink IPO wasn’t likely until at least 2025 or later.

It’s no surprise then that market watchers’ eyebrows rose when listening to SpaceX President and Chief Operating Officer Gwynne Shotwell speak at the February 2023 Commercial Space Transportation Conference. While discussing a planned testing milestone for SpaceX’s rockets, Shotwell claimed that 2023 was the year Starlink would make money.

She added that the company had a cashflow-positive quarter in 2022. There was also SpaceX’s reported revenue for 2022 — just over US$3.3 billion, US$1 billion of which originated from Starlink.

In early November 2023, Musk reported that Starlink had once again “achieved breakeven cashflow.’

Shortly after, an anonymous source told Bloomberg that a Starlink IPO could be on the table for 2024. But Musk quickly fired back in a post on X that the report was “false.”

It seems fairly clear based on Musk’s comments that we shouldn’t expect a Starlink IPO anytime soon. So why is there so much speculation that one is just around the corner?

Well, for one thing Starlink sales dominated SpaceX’s 2023 revenues, meaning the company made more money as an internet provider than as a space rocket company. Starlink revenues topped a massive US$4.2 billion that year, compared to US$3.5 billion for the firm’s core rocket launch business.

Of course, these figures should be taken with a very large grain of salt. As is too often the case in technology investing, there is no shortage of hype surrounding Starlink, much of it drummed up by Musk himself. An April 2024 BNN Bloomberg article points out that even with all that revenue, Starlink “is still burning through more cash than it brings in.” Based on anonymous inside sources, Starlink accounting is “more of an art than a science.’

Even if those numbers are inflated, the company does show promise, and analysts are still optimistic that a Starlink IPO is on the horizon. Justus Parmar, founder and CEO of venture capital firm Fortuna Investments, told Reuters he’s eyeing 2025 or 2026. “(Musk’s) waiting for a level of stability or predictability in revenue,” he said. Once the IPO is official, Parmar believes it will “be an extremely strong catalyst for everything space related.”

How can you get exposure before the Starlink IPO date?

While it’s impossible to invest directly in Starlink, you may be able to get a head start by investing in Tesla (NASDAQ:TSLA), as Musk stated he’ll ‘do his best’ to give preference to long-term Tesla shareholders. Additionally, there are platforms such as Hiive that enable accredited investors to purchase shares of pre-IPO companies, including SpaceX.

Fortunately, you have several options if you simply want to invest in satellite internet and aren’t particularly attached to the idea of Starlink. In spite of their failed efforts in the early 2000s, both Iridium Communications (NASDAQ:IRDM) and Globalstar (NYSEAMERICAN:GSAT) are currently going strong. Globalstar’s performance is especially promising, as the company’s share price has increased in value by almost 300 percent over the past five years as of mid-January 2025.

EchoStar (NASDAQ:SATS) is another satellite provider that’s performed strongly in recent years. Other potential satellite internet investments include ViaSat (NASDAQ:VSAT) and Gilat Satellite Networks (NASDAQ:GILT).

As with any investment, it’s important to do your research and speak to an accredited brokerage or investment advisor before you commit any capital.