A look at ASX-listed graphite stocks

Highlights:

• Graphite is used in lithium-ion batteries, which are used in renewable energy storage, electric vehicles, and mobile electronics.
• As per Magnis Energy Technologies, the demand for lithium-ion batteries is set to grow exponentially with countries looking to realise the target of net zero emissions by 2050.
• China is the major global supplier of graphite.

Graphite, the crystalline form of carbon, is a critical material in the switch to renewable energy, being an important component of green technologies such as lithium-ion batteries, vanadium redox batteries, and hydrogen fuel cells. Its properties, such as high electrical conductivity, high thermal conductivity, high temperature resistance, high energy density, and long cycle life, make it a versatile and much-sought-after engineering material.

Magnis Energy Technologies (ASX:MNS) highlights that

Magnis added that the demand for lithium-ion batteries from markets like renewable energy storage and electric vehicles is set to grow exponentially. With this growth, the demand for graphite is expected to grow as well.

Syrah Resources identifies China, Brazil, Madagascar, and Mozambique as the major global producers of natural graphite, and Vietnam and Brazil as a few of the smaller producers.

Magnis and Syrah, along with NOVONIX Limited and Renascor Resources Limited, are ASX-listed graphite companies and the focus of this article.

The S&P/ASX 200 was down 0.11% at 10:53 AM AEDT. Six out of the eleven significant sectors were in red, along with the broader market index. The Consumer Discretionary sector recorded the highest fall of 1.65% and the Energy sector was up by 1.55%. 

NOVONIX Limited (ASX:NVX)

NOVONIX is a battery technology company that operates across the United States and Canada. The company offers advanced high-performance services, equipment, and materials for the global lithium-ion battery industry. NOVONIX develops technologies and materials for the production of lower-cost and longer-life batteries that power a clean energy future.

The company manages two divisions, namely NOVONIX Battery Technology Solutions and NOVONIX Anode Materials.  

According to the company's official website, the company has come up with an environmental process to manufacture graphite anode materials. The company states that the demand for artificial graphite anode material is growing considerably with the growth in demand of renewables and electric vehicles.

As per NOVONIX, its GX-23 synthetic graphite has a longer cycle life than other industry-leading products and it is cost-effective, green, and safe, as well as being made in the United States.

At 10:38 AM AEDT, NOVONIX’s shares were spotted trading flat at AU$2.64 per share.

Renascor Resources Limited (ASX:RNU)

Renascor develops and discovers graphite, gold, copper, uranium, and other mineral assets. The company produces of ethically sourced and sustainable battery anode materials for lithium-ion battery markets. Renascor aims to become a leader in low-cost and Australian-made purified spherical graphite (PSG) for lithium-ion-battery anode makers globally.

The company manages four projects: Siviour, Carnding, Marree, and Olary. As per Renascor, its Siviour Graphite Project is the second-largest proven graphite reserve globally and the largest graphite reserve outside of Africa.

As reported by the company, the demand for PSG for use in lithium-ion battery anodes is increasing with the growth in demand for electric vehicles. Renascor’s Siviour Graphite Project is a vertically integrated operation located in South Australia. The location offers a favourable geology that allows the manufacturing of PSG at a cost that is competitive with its Chinese counterpart.

At 10:28 AM AEDT, Renascor Resources’ shares were trading flat at AU$0.26 per share.

Syrah Resources Limited (ASX:SYR)

Syrah is a vertically integrated battery anode and natural graphite company that supplies customer-qualified and environmentally differentiated products to industrial and battery markets. The company's vision is to become a leading supplier of graphite and active anode material products.

The Balama Graphite Operations are the flagship operation of the company, located in Mozambique. According to the company's official website, Balama is a natural graphite resource. Balama is an integrated processing facility with high reserve grade and multigenerational mine life, as per Syrah. The mine life is 50 years, and the graphite production capacity is 350 ktpa.

Also, the company manages a downstream active anode material (AAM) facility in Vidalia, Louisiana, in the United States, and it expects to complete the construction of an 11.25 ktpa AAM facility by the second quarter of 2023 and commence production by the third quarter. The facility produces 18-micron and 12-micron coated PSG.

At 10:36 AM AEDT, Syrah’s shares were spotted trading 1.57% lower, at AU$2.51 per share.

Magnis Energy Technology Limited (ASX:MNS)

Magnis is a vertically integrated lithium-ion-battery technology and materials group. The US subsidiary of Magnis, Imoperium3 New York, Inc. (iM3NY), manages a gigawatt-scale lithium-ion battery manufacturing facility in New York. Another major shareholder in iM3NY is the technology partner and joint venture Charge CCCV LLC (C4V).

Magnis manages the Nachu Graphite Project located in Tanzania. Magnis says the project demonstrates a huge amount of high-purity graphite concentrate and a large flake size.

Magnis has produced 99.97% purity coated spherical graphite lithium-ion battery anode products by utilising C4V's current commercial-scale facility and technology from Nachu graphite feedstock.

At 10:36 AM AEDT, Magnis’ shares were spotted trading 1.25% higher, at AU$0.40 apiece.