Concrete may have found it's killer app in graphene at 3 cents a gram by Mark Shwartz With the ever-increasing demand for steel in America and worldwide for all of our infrastructure needs, the fact that we simply don't have enough of it is a serious problem. According to a recent article in CIO magazine, America's industrial sectors will consume 11 million metric tons (mt) of steel this year. The world's steel industry uses 200mt of the stuff, although it's predicted that by 2025, the world will consume 300mt. For the moment, the answer is to make more steel, but the trend so far has been that the more steel we make, the higher the price. Today, the raw material cost for iron and steel in the United States is around $1,500 per metric ton. However, the price has been on a generally slow but steady upward trend. This trend will continue and may even accelerate, as demand for steel in China and Europe continues to grow as well. In fact, by 2015, an estimated 4 mt of extra steel will be needed globally, nearly a 25% increase from current levels. So where do we get all this extra steel from? From steel mills all over the world. What happens if there's a world shortage of steel, or if we experience a spike in demand that significantly exceeds what we can make, and we can't ramp up capacity quickly enough? What do we do then? There's just one thing to do... Graphene may be just the answer As the world struggles to try and find enough material and steel prices continue to trend upward, 3G Company, a global leader in graphene, has solved the problem. With its manufacturing facility outside of Cleveland, Ohio, 3G produces sheets of a material called graphene. Graphene, a strong and flexible substance with the ability to withstand being bent, has a plethora of uses, including making ultra-thin film that will replace the traditional glass on aircraft. It's a much safer material, too, as the graphene sheets can be used to develop more crash-resistant vehicles. In addition, 3G is also using its graphene to create a material that will be used to replace steel. It's so strong that it can be used as flooring for commercial building and will last longer than steel, as well as far more securely lock a door. With the increasing demand for steel and the growing concern for our environment, it would seem that such a material would be a natural fit in our society, but to this point, that hasn't been the case. Graphene is so expensive that it simply hasn't made financial sense to make it and sell it in quantities sufficient to provide an alternative to steel. Until now, that is. A new breakthrough 3G was able to dramatically reduce the cost of graphene and produce the material much more cheaply than the traditional processes used today. Now, it's able to produce the material at less than one-tenth the cost of the traditional processes and with a much higher yield. The company isn't talking about details and is remaining cagey about the exact price. However, it does expect that it will be able to provide its graphene in the future for as low as $20 per pound. According to Dan Carroll, COO of 3G, the graphene is cheaper because the processing plant has been modified to be far more efficient. The company is now not only making graphene but doing it much more efficiently. For comparison, graphene was originally produced at $100 per pound. What makes graphene special is that when it's rolled up into a thin, single-layer film, it's much stronger than any of the polymers currently in use. The use of graphene could help reduce the cost of steel and open up the world to a multitude of new applications, especially in transportation. A long-term trend In addition to the traditional applications for its graphene, 3G is also looking at using the material to make battery electrodes, making 3D printers that can print objects out of graphene materials, as well as making flexible solar cells. 3G has received massive amounts of investment, too. In June, the company announced that it raised $30 million. The funding was done at a price tag of $6 billion. That's much more money than any of the experts predicted at the time, and it's not hard to see why. The company projects that it will be selling its graphene at a price of $25 per pound. It will be using the money to build out its technology, manufacturing capabilities, and the infrastructure to support it. Graphene is not for sale to just anyone. It's been tough for most companies to keep up with graphene. Earlier this year, the price of the material was $2,500 per pound. Now, the cost is much lower, but graphene will be seen in abundance in a growing number of products. The use of graphene should help keep the price of steel and other important materials down and could even help to bring more products to market. With carbon dioxide pollution and climate change taking a toll on the economy, even low-cost solutions can be considered helpful, especially if the price tag is low. So, with this new miracle material, 3G may have found its killer app. The company is making an investment that may pay off for years to come. Disclosure: I am long AAPL. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. We only use your contact details to reply to your request for more information.We do not sell the personal contact data you submit to anyone else. Thank you for your interest in Seeking Alpha PROWe look forward to contacting you shortly for a conversation. 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