A look at ASX-listed graphite stocks

Highlights:

• Graphite, which offers lubricating properties, is a good conductor of electricity and has a high-fusion point
• Graphite has gained significant attention lately as it is used in lithium-ion batteries
• This article highlights the ASX graphite companies, Magnis Energy Technologies Limited, NOVONIX Limited, and Renascor Resources Limited.

Graphite is a hexagonal crystalline structure of carbon that occurs naturally. Graphite is a good conductor of electricity with good lubricating properties and has a high fusion point. The major market for graphite is manufacturing heat-resistant refractory linings, lubricants, coating foundry moulds, batteries, brake linings and carbon brushes. 

The application of graphite in lithium-ion batteries is what attracts the interest of investors. Graphite increases the volume of electricity a battery can store and reduces the time it takes to charge the battery. The graphite industry is expected to grow with an increase in demand for electric vehicles, battery-powered electronics, and smartphones.

As reported by the Government of South Australia, China is the major producer of graphite globally. 

In line with this, let’s look at graphite ASX stocks. This piece discusses Magnis Energy Technologies Limited, NOVONIX Limited, and Renascor Resources Limited and their recent stock performance.

For context, the  S&P/ASX 200 (INDEXASX:XJO) Australian stock market index was down by 0.74% at 11:06 AM AEDT. In the past one year, the index has lost 1.98%, and on a year-to-date basis, it has dropped by 5.78%.

The ASX 200 Materials (NDEXASX:XMJ) was down 0.0067% around the same time to 17,815.00 points. In the last five trading sessions, the Materials index has lost 3.23%, and in the past one year, it has gained 10.26%. On a year-to-date basis, it has gained 4.14%.

Magnis Energy Technologies Limited (ASX:MNS)

Magnis is a vertically integrated lithium-ion battery technology company with strategic partnerships, investments, and assets in the electrification supply chain. iM3NY (Imperium3 New York, Inc) is a US-based subsidiary of Magnis that manages a gigawatt-scale lithium-ion battery production project in New York. Charge CCCV LLC is a joint venture and technology partner of Magnis. The company operates the Nachu graphite project in Tanzania, demonstrating graphite concentrate, and a large portion of larger flake sizes. 

The company’s chairman stated, “Nachu and downstream graphite products remain a major focus of the business.”

In August 2022, the company commenced commercial production in iM3NY. Magnis said that at a gigawatt-scale capacity, the company is expected to produce around 15,000 cells per day. During the year, iM3NY raised US$100 million in debt refinancing. 

The company reported compelling project returns from a recently completed BFS update. Also, the company inked a binding graphite offtake agreement with Traxys Europe for over six years for 600kt. 

Magnis’ shares were spotted trading flat at AU$0.40 per share at 10:38 AM AEDT on 16 December 2022 with a market capitalisation of AU$392.98 million. In the past one year, the share price has dropped by 7.95%, and on a year-to-date basis, it has decreased by 28.95%. However, the share price has increased by 30.65% in the past six months.

Novonix Limited (ASX:NVX)

NOVONIX is a battery technology company which operates in the United States and Canada. The company offers materials, services, and equipment services to the global lithium-ion battery industry. The company claims to develop technologies and materials to support lower-life and longer-life batteries that bring the world closer to a cleaner energy future.

The battery technology solutions division of NOVONIX is focused on innovative battery development and research and offers advanced battery testing services and equipment on a global scale. 

The anode materials division of the company manufactures synthetic graphite anode materials, which are employed in producing lithium-ion batteries. Magnis said that to address the growing demand for lithium-ion batteries, it will increase the production capacity to 10,000 metric tonnes of synthetic graphite annually by 2023. By 2030, the company targets to achieve 150,000 tpa of production capacity. 

At 10:53 AM AEDT, NOVONIX’s shares were spotted trading 2.17% lower at AU$1.80 per share with a market capitalisation of AU$895.49 million. In the last 12 months, the share price has tumbled by 80.59% and by 82.84% on a year-to-date basis.

Renascor Resources Limited (ASX:RNU)

Image source: © Supapornss | Megapixl.com

Renascor intends to become one of the largest producers of purified spherical graphite (PSG). The company develops battery anode material and Siviour graphite projects in South Australia. The company plans to develop a vertically integrated operation in South Australia, as it is a Tier-1 jurisdiction with a robust, transparent, low-sovereign risk regulatory framework.

The company aims to take advantage of its favourable location, leverage low-cost mining operations, and a modern industrial jurisdiction by adding a secondary state-of-the-art processing operation to take a leading position in providing PSG for lithium-ion battery anode manufacturing.

In 2022, the company secured an AU$185 million conditional loan from the Australian government through Export Finance Australia. Optimised BAM study commenced during the year that is based upon the previous feasibility study. Also, the company achieved several offtake agreements with lithium-ion battery anode companies.

The company undertook infill drilling at Siviour Mineral Resources during the year, which resulted in a 17% surge in indicated resources and 14% growth in measured plus indicated resources.

On Friday (16 December 2022), Renascor’s shares were trading 2.17% higher at AU$0.24 per share at 10:48 AM AEDT with a market capitalisation of AU$568.11 million. The share price has zoomed by 95.83% in one year and has increased by 30.56% on a year-to-date basis.