The Top 10 Graphite Stocks: Invest in Electric Car Battery Minerals

More electric cars on the roads means we need more metals and minerals that go into EV batteries. To no one’s surprise, demand for green metals and minerals like lithium, cobalt, copper, nickel, and graphite is soaring. Graphite is perhaps the least-known and appreciated green mineral. Learn how to invest.

Ben Carson   Updated January 24th, 2022

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What is graphite?

Graphite is a black mineral used in the negative ends (or anodes) of lithium-ion batteries. Mostly mined in China and increasingly hard to come by, graphite used in batteries doesn’t have great substitutes. The mineral, which is a form of carbon, is also used in the nuclear and steelmaking industries.

Benchmark Mineral Intelligence, a mining consulting firm, sees a 20,000-ton graphite deficit in 2022. Demand is fueled by EV-makers like Tesla (TSLA), which has just secured graphite supplies from Syrah Resources (SYR). Syrah Resources is an Australian miner that operates a large graphite mine in Mozambique. Tesla sources most of its graphite from China, so the deal helps the car-marker diversify its supply chain.

What are the best graphite stocks?

Over 70% of graphite is produced in China, and there aren’t many international graphite stocks. Publicly listed graphite companies are generally small-cap, development-stage Canadian or Australian miners. However, Syrah Resources, which has recently inked a supply deal with Tesla, is approaching a $1 billion valuation.

Graphite stock list

  • Syrah Resources Limited (OTCMKTS: SYAAF)
  • NextSource Materials Inc (OTCMKTS: NSRCF)
  • Talga Group Ltd (OTCMKTS: TLGRF)
  • Magnis Energy Technologies Ltd (ASX: MNS)
  • Gratomic Inc (OTCMKTS: CBULF)
  • Graphite One Inc (OTCMKTS: GPHOF)
  • Nouveau Monde Graphite Inc (NYSE: NMG)
  • Leading Edge Materials Corp (OTCMKTS: LEMIF)
  • Graphex (OTCMKTS: GRFXY)

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1. Syrah Resources Limited (OTCMKTS: SYAAF)

  • Market capitalization: 910 million AUD
  • 1-year return: +30%

Melbourne, Australia-based Syrah Resources is one of the few larger graphite suppliers not based in China. The company owns 100% of the world’s largest graphite mine, the Balama mine in Mozambique in Africa. The mine has an expected life of 50 years.

Syrah plans to become vertically integrated and make anode material from mined graphite. To do that, the company is expanding a facility in Louisiana, U.S.A. In a notable recent development, Tesla has agreed to buy most of the initial anode production at the Louisiana facility.

If all goes well, Syrah can become an alternative supplier of graphite anodes to European and U.S. customers who don’t want to rely on China.

2. NextSource Materials Inc (OTCMKTS: NSRCF)

  • Market capitalization: 380 million CAD
  • 1-year return: 270%

NextSource Materials is a Canadian mine development company that is building out a 100%-owned Molo Graphite Project in Madagascar. The first stage of mine construction is now in progress, with initial production scheduled for April 2022. NextSource wants to become a vertically integrated graphite supplier “from mine to battery,” so they are also building a battery anode facility.

One of NextSource’s investors and the Chair of its Board of Directors is Mick Davis, the former CEO of Xstrata, a huge mining company that is now part of the miner Glencore.

3. Talga Group Ltd (OTCMKTS: TLGRF)

  • Market capitalization: 454 million AUD
  • 1-year return: -19%

Talga Group is a vertically integrated Australian development-stage graphite miner. The company mostly operates in Europe: it owns graphite deposits in Sweden (where it plans to start battery anode production) and a test process facility in Germany. Talga’s main focus is building out the graphite anode facility in Sweden. The facility will run on 100% renewable energy and target the EV battery market.

4. Magnis Energy Technologies Ltd (ASX: MNS)

  • Market capitalization: 503 million AUD
  • 1-year return: 176%

Magnis Energy Technologies is an Australian miner developing a graphite project in Tanzania. The Magnis Nachu project contains high quality graphite concentrate and has a 15-year mine life. In addition, Magnis is building a battery factory in New York, U.S.A.; the facility was 40% complete as of October 2021. Production is scheduled to begin in the second quarter of 2022. Another battery factory in Australia is on its way.

5. Gratomic Inc (OTCMKTS: CBULF)

  • Market capitalization: 230 million CAD
  • 1-year return: 142%

Toronto, Canada-based Gratomic is a graphite exploration and mining company with two projects. The 100%-owned flagship project, the Aukam Graphite Project, is located in Namibia and currently boasts two pre-production purchase agreements. Gratomic believes that graphite from the Aukam project is ideally suited for use in batteries. There is a second graphite project in Quebec in Canada.

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Best robo-advisor for green investing

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0.25%

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$10


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$60/year

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$100

Save and invest spare change

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$3-$5 / month

Minimum

$5

Work with human advisors

Fees

0.49%-0.89%

Minimum

$100,000

6. Graphite One Inc (OTCMKTS: GPHOF)

  • Market capitalization: 150 million CAD
  • 1-year return: 97%

Another Canadian miner, Graphite One, is building out a vertically integrated, U.S.-based graphite supply chain. The company aims to both develop graphite deposits and make anodes for the lithium-ion EV battery market.

Graphite One’s graphite project is located on the Seward Peninsula in Alaska, where the company thinks it can mine 4 million tons each year. The material will then be purified, processed, and converted into battery-grade graphite.

The U.S. doesn’t currently produce graphite, so a domestic supply chain would be a welcome development. However, the project is still in the feasibility stage, and it will be a while until we see production.

7. Nouveau Monde Graphite Inc (NYSE: NMG)

  • Market capitalization: 579 million CAD
  • 1-year return: -51%

Based in Canada, Nouveau Monde Graphite plans to produce graphite from an all-electric open pit mine in Quebec, Canada, converting it locally to battery anode to satisfy EV demand. Nouveau Monde has already started construction at the Matawinie Graphite Mine Project, located about 150 miles north of Montreal. Meaningful graphite production won’t begin until 2023-2025, though.

8. Leading Edge Materials Corp (OTCMKTS: LEMIF)

  • Market capitalization: 83 million CAD
  • 1-year return: 57%

Leading Edge Materials is a Canadian company developing several European EV battery projects. They include the Woxna Graphite mine in Sweden, where Leading Edge aims to be a vertically integrated supplier of battery anodes. Besides graphite, Leading Edge has a 100%-owned rare earth project in Sweden. Rare earth minerals are critical for EV batteries, cars, and other clean energy applications. Last but not least, the company is trying to discover cobalt deposits in a traditional mining area in Romania.

9. Graphex (OTCMKTS: GRFXY)

  • Market capitalization: 549 million HKD
  • 1-year return: 70%

Graphex is a small, Hong-Kong listed company making spherical graphite for lithium-ion battery anodes. The company has supply contracts in China and produces about 10,000 tons of spherical graphite each year. It is also looking to expand to North America. Although Graphex has a small market cap, its ADR is listed in the U.S., making it easier for U.S. investors to access this stock.

🔔 Looking for other “green metals” to invest in? Learn about investing in lithium, nickel, copper, rare earths, and cobalt.

NOT INVESTMENT ADVICE. The content is for informational purposes only; you should not construe any such information as investment advice.

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Frequently Asked Questions

Is graphite used in EV batteries?

Graphite is used in EV batteries. The mineral is used to make the negative ends (or anodes) of lithium-ion batteries.

Where does Tesla get its graphite?

Tesla gets graphite from multiple manufacturers, mostly in China. It has also recently signed a graphite supply agreement with Syrah Resources, an Australian miner.

Who is the biggest producer of graphite?

China is the biggest producer of graphite: over 70% of the world’s supply is produced in China.