6 Promising Graphite Stocks to Consider (mostly Battery-grade)

Last Updated on July 12, 2021 by Henry John

Most of us know graphite from our basic chemistry class. It’s a mineral form of carbon that is the only non-metal element that is a good conductor of electricity. It is found all over the world in high quantity.

For the most part, there is nothing new or thrilling about graphite. Its usage could be traced back to ancient civilizations. In fact, the word graphite is Greek for ‘to write’, relating to its usage in the making of lead (graphite + clay) in pencils.

Nonetheless, our understanding of the economic importance of graphite has been and is evolving, and that is thrilling. Graphite is not just a good conductor of electricity, it is also a good conductor of heat. It has an exceptionally high thermal conductivity (25-470 W m -1) and stability.

All of these characteristics of graphite put together, plus the fact that it copes well with the flow of lithium ions during charging and discharging explains why it is usually used as anodes for Lithium-ion batteries that are used in electric vehicles. Thrilling!

Do I even have to mention that the demand for electric vehicles is increasing exponentially?

Or that the vast majority of electric vehicles are using Lithium-ion batteries?

Perhaps I should mention Graphene batteries, an emerging battery technology made out of an atomic layer of graphite that promises fast charging, lower temperatures, and longer-lasting batteries for EVs and smart devices.

Every growth investor that is looking to capture critical aspects of the EV battery supply chain should be considering graphite stocks. And the demand for graphite goes beyond batteries for EVs as the battery market goes beyond EVs.

If you’re interested in investing in graphite stocks, here are 6 graphite companies to consider:

1. NextSource Materials Inc. (TSX: NEXT) (OTCMKTS: NSRCF)

NextSource Materials Inc. is a battery materials development company based in Toronto, Canada that is intent on becoming a fully integrated, global supplier of critical battery and technology materials needed to power the sustainable energy revolution.

The Company’s 100% owned Molo graphite project is one of the largest known and highest-quality graphite deposits and the only one with SuperFlake® graphite.

The Molo is a feasibility-stage and fully permitted flake graphite project that ranks as one of the largest-known and highest quality deposits in the world. The Molo hosts a National Instrument 43-101 compliant total combined graphite resource of 141.28 million tonnes (Mt) at 6.13% total graphitic carbon (C), with a contained ore reserve of 22.44 Mt at 7.02%C.

In May 2021, the company signed an offtake agreement with Thyssenkrupp Materials (one of the world’s largest materials traders) trading for up to 35,000 tonnes per year of its branded SuperFlake for 10 years from the Molo mine.

The company also has a collaborative partnership with Japanese and Chinese partners currently supplying battery-grade graphite to the Tesla supply chain.

Headquartered in Toronto, the company was founded in 2004 as Energizer Resources Inc. Before it changed its name to NextSource Materials Inc. in 2017.

 The company was formerly known as Energizer Resources Inc. and changed its name to NextSource Materials Inc. in April 2017. NextSource Materials Inc. was founded in 2004 and is headquartered in Toronto, Canada

2. Tirupati Graphite Plc. (LON: TGR)

Tirupati Graphite plc operates as a specialist graphite and graphene producer in Madagascar and India. Its flagship projects include the Sahamamy and Vatomina projects located in Madagascar.

The company is a revenue-generative, multi-asset, multi-jurisdictional, fully integrated producer and developer of high-grade natural flake graphite, specialty graphite, and graphene, capturing the entire value chain.

With a unique set of properties, graphite has diverse applications with multiple growth streams while graphene forms the new generation of 2D materials. In support of this, the Company places a special emphasis on “green” applications, including renewable energy generation, energy storage, and composites, and is committed to ensuring its operations are sustainable as well.

The company also offers specialty graphite for use in lithium-ion batteries, fire retardants, and composites. It places a special emphasis on ‘green’ applications, including renewable energy generation and energy storage.

Based in London, Tirupati Graphite plc was founded in 2017.

3. GrafTech International Ltd. (NYSE: EAF)

GrafTech International Ltd. researches, develops, manufactures, and sells graphite and carbon-based products worldwide.

It offers graphite electrodes to produce electric arc furnace steel and other ferrous and non-ferrous metals; and petroleum needle coke, a crystalline form of carbon used in the production of graphite electrodes.

The electrode is an essential part of the electric arc furnace process used in aluminum smelters and steel minimills. The company operates into one reporting segment namely Industrial Materials.

The company sells its products primarily through a direct sales force, independent sales representatives, and distributors.

GrafTech International Ltd. was founded in 1886 and is headquartered in Brooklyn Heights, Ohio.

4. Nouveau Monde Graphite Inc. (NYSE: NMG)

Nouveau Monde Graphite Inc is a mineral exploration company that engages in the acquisition, exploration, development, and evaluation of mineral properties in Quebec, Canada. It primarily explores graphite.

The company owns a 100% interest in the Matawinie property that includes 319 mining claims covering 17,585 hectares situated to the north of Montreal, Quebec.

The company was formerly known as Nouveau Monde Mining Enterprises Inc. and changed its name to Nouveau Monde Graphite Inc. in February 2017. Nouveau Monde Graphite Inc. was founded in 2011 and is headquartered in Saint-Michel-des-Saints, Canada.

5. Ceylon Graphite Corp. (CYL: TSX-V) (OTCMKTS: CYLYF)

Ceylon Graphite Corp is a graphite mining company. It is engaged in the exploration and production of high-grade graphite.

The company owns the K1 production site and several other sites including M1 (an active exploration site in Malsiripura), H1(a new site in Hakbewa), and P1 (another new exploration site in Pasyala district) all in Sri Lanka.

The company holds a land package of approximately 121square kilometers grids containing historic vein graphite deposits.

Ceylon Graphite Corp. is based in Vancouver, Canada.

6. Focus Graphite Inc. (TSXV: FMS) (OTCMKTS: FCSMF)

Focus Graphite Inc is an exploration stage company. The company is engaged in the acquisition, exploration, and development of mineral properties in Canada. Its projects include Lac Knife; Lac Tetepisca graphite and Lac Guinecourt graphite property.

It explores graphite, iron, copper, rare-earth elements, and gold deposits.

Its flagship property is the Lac Knife property in which it holds 100% interest that consists of 57 claims covering an area of 29,863 hectares located in the Côte Nord region of Québec.

Lac Knife is one of the highest-grade flake graphite deposits in the world. An updated January 2014 resource calculation showed Measured and Indicated resources totaling 9,576,000 million tonnes grading 14.77% graphitic carbon, with Inferred resources* of 3,102,000 tonnes grading 13.25% carbon. 

In 2017, the company announced its in-house development of highly conductive Ultrafine and Expanded graphite for use in Lithium-Ion and alkaline batteries. Testing indicated the electrical conductivity of Lac Knife’s ultrafine and expanded graphite outperformed both commercially available synthetic and standard flake graphite by up to a factor of 10.

The company was formerly known as Focus Metals Inc., however, as a reflection of its core business, it changed its name to Focus Graphite Inc. in May 2012. The company was incorporated in 1998 and is based in Kingston, Canada.

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