M&A On Horizon As Spain Invests In ‘Miracle’ Graphene

M&A On Horizon As Spain Invests In ‘Miracle’ Graphene

M&A On Horizon As Spain Invests In ‘Miracle’ Graphene

With interest rates still low, gold prices disappointing and stock markets as volatile as ever, investors are looking for alternative ways to make their money work. One option which is attracting the interest of a growing number of industrial and private investors is graphene, touted as the “miracle material” of the 21st century.

Graphene is made of a single layer of carbon atoms, and researchers the world over are using it for critical advances in a variety of industries, including solar power, semi-conductors and aircraft. Examples of new products enabled by graphene technologies include fast, flexible and strong consumer electronics such as electronic paper and bendable personal communication devices.

Spain is one of the countries leading the investigation in Europe into the exploitation of this material’s unique properties. There are around 20 companies worldwide dedicated to graphene production, and four of them are based in Spain: Avanzare, Graphenano, Graphenea and Granph Nanotech.

Companies that manufacture and supply graphene stand to grow quite a bit and are ripe for investment. Industry expansion and increased competition will also fuel M&A in Spain.

EU GRAPHENE INVESTMENT

The expectations for graphene as the material of the future are so high that in January the European Commission announced its financial backing. It selected graphene as one of Europe’s first 10-year Future and Emerging Technology flagships, earmarking one billion euros for the project.

The Graphene Flagship brings together an academic-industrial consortium aiming at a breakthrough for technological innovation to revolutionise multiple industries and create economic growth and jobs in Europe. The Catalan Institute Of Nanotechnology, located near Barcelona, is a member of the Graphene Flagship consortium.

Given the scarcity of graphene manufacturers in Europe, about 95 percent of Spanish output goes abroad, contributing to the uptick in the country’s exports. These Spanish firms will undoubtedly become future acquisition targets for overseas investors.

SPAIN GRAPHITE MINING POTENTIAL

There are only a few companies in the world with access to graphite, the mineral resource that is required to make graphene, and 70 per cent of supply is controlled by China, so the setup is perfect for any non-Chinese supply to become an extremely lucrative investment.

This is another area where Spain could become a major player if explorations into graphite mining in Huelva province in southwest Spain prove successful.

Graphene is expected to be the motor of the global economy in the coming decades. Will it also become a key economic driver for Spain in the future?

For more information on Spain’s graphene investment, contact corporate law firm Argali Abogados.

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