Are these the best ASX graphite stocks? [2023]

Decide which are the best graphite stocks on the ASX

Data as of 24 October 2023. Source: Stake, ASX.

*The list of shares mentioned is ranked by market capitalisation. When deciding what assets to feature, we analyse the financials, recent news, the state of the industry, and whether or not they are actively traded on Stake.

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Discover these Australian graphite mining companies

1. Syrah Resources Limited ($SYR)

Market Capitalisation: $476.51m

Stock price (as of 24/10/2023): $0.70

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 57% / 43%

Syrah Resources (SYR) operates the Balama Graphite Project in Mozambique, which is one of the largest known graphite deposits in the world. Syrah Resources produces both natural flake and spherical graphite, which are used in lithium-ion batteries, refractories, and other industrial applications. They also developed a unique process called "balahama-graphite to batteries" that turns natural graphite flakes into spherical graphite, which is the form of graphite used in lithium-ion batteries.

2. Talga ($TLG)

Market Capitalisation: $409.25m

Stock price (as of 24/10/2023): $1.14

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 56% / 44%

Talga Group (TLG) has a fully permitted natural graphite refinery in Sweden, which could become a major supplier to European car manufacturers. They are also aiming to develop the Vittangi Graphite Project and resolve permitting concerns. Talga is exploring a third asset in the same nation, the Aero Lithium Project.

3. Renascor Resources ($RNU)

Market Capitalisation: $380.91m

Stock price (as of 24/10/2023): $0.15

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 42% / 58%

Renascor Resources (RNU) is developing a vertically integrated battery anode project in South Australia. The outputs from the Siviour graphite deposit will be processed into purified spherical graphite (PSG) to be used in lithium-ion batteries. Renascor is working on plans for the Siviour Mine and hoping to increase the capacity of battery materials the processing plant could produce. They intend to use an eco-friendly purification process based on floatation, rather than using acids.

4. Black Rock Mining Limited ($BKT)

Market Capitalisation: $121.12m

Stock price (as of 24/10/2023): $0.12

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 50% / 50%

Black Rock Mining is one of many Australian mining companies, where focus is on the development of a Mahenge Project in Tanzania. The project is spread across 324 square kilometres in the Ulanga district, with a delivery of up to 340,000 tonnes per annum of 98.5% graphite concentrate through a four-stage construction schedule.

5. Walkabout Resources Ltd ($WKT)

Market Capitalisation: $84.66m

Stock price (as of 24/10/2023): $0.12

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 58% / 42%

Walkabout Resources is a graphite exploration and development company focused on the development of its Lindi Jumbo Graphite Project in Tanzania. The company expects the project will be able to deliver high-grade graphite with good profit margins, while also developing projects to mine other metals like zinc, copper, lead and gold in Scotland in Northern Ireland.

6. Triton Minerals Ltd ($TON)

Market Capitalisation: $45.28m

Stock price (as of 24/10/2023): $0.03

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 24% / 76%

Triton Minerals is a graphite exploration and development company focused on the development of its Ancuabe Graphite Project in Mozambique. The company aims to become a significant supplier to the EV, smartphones and other sectors of the energy storage industry.

7. Evolution Energy Minerals Limited ($EV1)

Market Capitalisation: $30.69m

Stock price (as of 24/10/2023): $0.18

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 65% / 35%

Evolution Energy Minerals (EV1) is a mining company focused on the development of its Chilalo Graphite Project in southern Tanzania. They’re fully permitted to start construction and are working on studies to finalise plans for the Project. Evolution is also looking at further downstream opportunities that could add value to their operations.

8. Metals Australia ($MLS)

Market Capitalisation: $25.40m

Stock price (as of 24/10/2023): $0.04

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 50% / 50%

Focused on mining exploration, this company is focused on the exploration and development of lithium and graphite deposits. The company's main focus is on its Lac Rainy Graphite Project, which is located in Quebec, Canada. The project is considered one of the largest and highest-grade graphite deposits in the world. Metals Australia's graphite operations include drilling, exploration, and mining activities, as well as processing and refining of graphite concentrate.

9. Volt Resources Limited ($VRC)

Market Capitalisation: $22.05m

Stock price (as of 24/10/2023): $0.01

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 38% / 62%

Volt Resources (VRC) is headquartered in Perth, Western Australia, and concentrates on the exploration and development of its wholly-owned graphite projects in Tanzania and Ukraine. With a 70% controlling interest in the Ukraine Zavalievsky Graphite business, the mine and processing plant has a 30,000 tonnes per annum capacity, with the potential to increase its high-value large graphite flake production.

The Bunyu Graphite Project is their wholly-owned graphite resource and is the largest in Tanzania. Tests have confirmed that the graphite has excellent quality, with the flake graphite concentrate suitable for many applications including graphite foil, refractory and lubrication products and expandable graphite. Through tests run by an independent German metallurgical laboratory, the battery-grade graphite has been confirmed with a 99.99% TGC purity.

One could also consider Volt Resources a potential gold stock with the addition of three gold projects in Guinea, West Africa, under their list of operations.

10. iTech Minerals Ltd ($ITM)

Market Capitalisation: $16.14m

Stock price (as of 24/10/2023): $0.14

Stake Platform Bought / Sold (1 Jan 2022 - 23 Oct 2023): 52% / 48%

iTech Minerals (ITM) is a graphite exploration and development company focused on the development of its graphite projects in Canada and South Australia. The company is currently exploring and developing the Lac Guéret Graphite Project in Quebec, which has the potential to become one of the largest graphite mines in North America.

How to buy graphite stocks

The main way of investing in graphite is through graphite companies listed in Australia, using an online investment platform.

1. Open a stock investing account

To invest in graphite stocks and ETFs, you'll need to sign up to an investing platform with access to the ASX and Cboe Australia. Lucky for you Stake has access to both stock exchanges.

2. Fund your account

Complete an application with your personal and financial details. Fund your account with a bank transfer, debit card or even Apple/Google Pay.

3. Search for graphite shares or ETFs

Find the asset by searching for the name or ticker symbol. Do your own research to ensure it is the right investment product for your own circumstances.

4. Choose an order type and buy the asset

Buy on any trading day with a market, limit or stop order. Look into dollar cost averaging to spread out your risk, which smooths out buying at consistent intervals.

5. Monitor your investment

Optimise your portfolio by tracking how the security performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights that affect your shares.

Is it a good time to invest in graphite stocks?

It's difficult to say whether a specific time is a good time to invest in graphite stocks, as the stock market is influenced by a wide range of factors and can be subject to fluctuations. China was a significant source of graphite with around 65% of global production in 2022 and the leading processor of spherical graphite. A recent announcement that some of the country’s exporters will require permits could negatively affect the overall market balance in the near term.
In the longer term, the demand for graphite is likely to increase in the future due to its use in lithium-ion batteries and other technologies such as solar panels and nuclear reactors. As the electric vehicle market is expected to grow significantly in the future, the demand for graphite is likely to increase. As construction standards are raised, graphite see its role as a flame retardant in building materials such as cladding grow.

What is graphite used for?

Graphite is a versatile material that has many industrial uses. Some of the most common uses of graphite include:

• Lithium-ion batteries: Graphite is used as the anode in lithium-ion batteries, which are used in a wide range of consumer electronics and electric vehicles.
• Refractories: Graphite is used in the production of refractory materials, which are used to line high-temperature furnaces and reactors.
• Lubricants: Graphite is used as a dry lubricant in applications where oil and grease cannot be used.
• Pencils: Graphite is the material that is used in the core of pencils.
• Fuel cells: Graphite is used in the electrodes of fuel cells, which convert chemical energy into electricity.
• Steelmaking: Graphite is used as a lubricant and a purifying agent in the production of steel.
• Nuclear industry: Graphite is used in the production of nuclear fuel rods and in the construction of nuclear reactors.
• Aerospace: Graphite is used in the production of aircraft and rocket components because of its strength and low weight.
• Graphene: Graphite is the raw material used to produce graphene, a two-dimensional form of carbon with unique electronic and mechanical properties.

These are just a few examples of the many ways that graphite is used in some industries. As technology advances, there may be new uses for graphite discovered.

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Graphite stocks FAQs

How can I invest in graphite stocks in Australia?

There are a few ways to invest in graphite stocks in Australia. One way is to buy shares of companies that are involved in the mining and production of graphite.

Another way to invest in graphite is through exchange-traded funds (ETFs) that hold shares of companies involved in the mining and production of graphite and other strategic metals.

Is there a graphite ETF to invest in?

There is no specific ETF that tracks the price of graphite or the graphite market, but there are ETFs that invest in companies involved in graphite production and mining. For example, the VanEck Vectors Rare Earth/Strategic Metals ETF ($REMX) holds stocks of companies that produce or explore for rare earth and strategic metals, which includes companies involved in graphite mining and production.

Who is the biggest graphite producer in Australia?

The biggest graphite producer in Australia is Syrah Resources ($SYR).

This does not constitute financial product advice nor a recommendation to invest, it is for informational purposes only. Past performance is not a reliable indicator of future performance. As always, do your own research and consider seeking appropriate financial or taxation advice from a licensed adviser before investing.