Graphite is a key component for everyday items, such as pencils and polishes. But its essential use in lithium-ion batteries has seen its demand grow significantly in recent years.
With the popularity of electric vehicles (EVs), so too is the demand for graphite. And this trend is expected to gain steam in future years.
Investors look to capitalize on this growth by investing in the best graphite stocks available.
5 Best Graphite Stocks to Invest in
If you are looking to take advantage of the growing demand in this field, investing in the best graphite stocks will be vital.
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1. Lomiko Metals Inc. (OTCMKTS: LMRMF)
Lomiko Metals specializes in the manufacturing of batteries and electrical systems. The company has a 100% stake in a flake graphite mine but also mines lithium nearby, making it an attractive company to invest in.
The Canadian firm is one of the largest graphite producers and is expected to mine up to 100,000 tons of graphite over the next 15 years.
Given its focus on the EV market, Lomiko has strong potential, and its output will likely keep up with the global demand for these materials.
2. Nouveau Monde Graphite Inc. (NYSE: NMG)
Nouveau was founded in 2011 and produces graphite materials, aiming to contribute to a sustainable world through its carbon-neutral footprint.
Nouveau’s main Matawine mine is projected to produce 52,000 tons of graphite concentrate per year, offering huge potential as it continues to keep up with ongoing EV demand.
Its share price has been underwhelming this year, falling 20% YTD. However, as the market continues to grow, the potential for the firm may continue to advance.
3. Black Rock Mining Limited (ASX: BKT)
Third on the list is Black Rock Mining Limited. This stock is extremely attractive to investors because of its graphite project in Tanzania, which is one of the largest reserves.
The mining company is also looking at expanding into the US market as it looks to diversify and build its product offering.
Its shares are down just 18% this year. Investors believe Black Rock may have potential.
4. NextSource Materials Inc. (OTCMKTS: NSRCF)
NextSource is a strategic materials development firm that aims to be a global supplier of critical battery and technology materials.
The company recently announced the completion of its processing plant and mining camp for its Molo Graphite Mine in Madagascar.
NextSource not only specializes in graphite production but also in vanadium mining, a natural material growing in demand from the popularity of vanadium batteries.
5. Gratomic Inc. (OTCMKTS: CBULF)
Canadian company Gratomic has mines in Northern Canada, Brazil and Namibia and is looking to achieve an environmentally friendly mining process for its graphite projects. The group is aiming for carbon-neutral development as it looks to aggressively expand its production.
This expansion has seen Gratomic purchase agreements for rare vein graphite and gain access to the largest graphite vein in Namibia.
Gratomic attempts to expand its production and quality make it one to watch over the long term.
What Are Graphite Stocks?
Graphite is a valuable natural commodity that could become one of the most important natural materials as demand for new technology grows.
Its materials are used in several essential products, but its use in the battery market has made it a necessary commodity over the last decade, depending on certain factors.
Investors have been looking into companies that specialize in the mining and production of graphite and investing in these stocks. The growth of EVs could make graphite stocks attractive over the long term.
Why Invest in Graphite Stocks?
Investments in graphite stocks can be beneficial from exposure to the rapidly growing EV battery industry. Investing in graphite stocks can be a way to provide your portfolio with exposure to the ever-growing electric vehicle market. Graphite is recognized as one of the most useful natural materials around.
Technology continues to expand, and so too does the demand for graphite. Investments in this field can provide the potential for strong returns, great exposure and value across a thriving market.
The market relies heavily on the advancement in technology, but the global economy and geopolitical issues may impact production. As successful as graphite investment can be, it still poses potential headwinds.
Invest in the Best Graphite Stocks with These Top Brokers
To invest in some of the best graphite stocks available, you must first be set up with a broker. If you already have a broker, then you can invest in graphite stocks in one simple process. If not, it is important to find the best broker for you, one with limited costs and minimal barriers.
Graphite is Vital in EVs
The growth in graphite materials has been vital to the production of EVs, and the transition to a greener climate means the demand for these EVs may climb.
To support this demand, the supply of graphite will need to keep up, making it vital to these markets but also a potentially profitable segment in your portfolio.
Although all investments come with a level of risk and must be thoroughly researched, economic factors may have an impact on the market, stocks and other assets you invest in.
Frequently Asked Questions
A
Investing in graphite is a great way of taking advantage of the growth in EVs while investing in the production element. The popularity of EVs will offer a great opportunity to invest in graphite.
Q
Will graphite stocks go up?
A
There is no way of saying for sure whether graphite stocks will rise or fall, but the popularity of this market in recent years suggests it is one many investors are bullish on.
Q
What company is the largest producer of graphite?
A
Syrah Resources’ Balama project is claimed to be the world’s largest integrated natural graphite mining operation available.
Best Graphite Stocks Methodology
These stocks were chosen based on some of the currently most popular graphite stocks and their potential based on recent updates. Its market cap was also considered to measure against competitors.