Download now: King Coal Triple Play

Investing in Graphite

Prices Up 250% Already

Written by Nick Hodge
Posted April 12, 2012

Now is the time to take advantage of the graphite bull.

Prices for the mineral have surged 250% in the past few years thanks to a number of factors.

Here's what you need to know...

Investing in Graphite

For starters, graphite is kind of in a “rare earth” type situation because 70% of supply is controlled by China.

Industrialization in that country — as well as in India and other emerging markets — has led to increased demand for graphite in its traditional use as an additive to steel.

The 30% of supply that comes from outside of China is typically used in full by the country where it's mined.

There's only a handful operating graphite mines in the entire world.

So take a look at what all those various market factors have done to graphite prices in the last five years:

Graphite Prices

These prices are only expected to rise as China, India, Brazil, and other emerging markets continue to mature and drive demand through typical end uses... and because of new uses for graphite that are expected to increase demand even further — like lithium-ion batteries, fuel cells, vanadium redox batteries, and pebble bed nuclear reactors.

I bet you didn't know there's 30x more graphite in a lithium-ion battery than there is lithium.

Their use is only going to grow as they become the go-to batteries for power tools, electric bikes and scooters, and hybrid and electric vehicles.

The future need for graphite is so great — and its current production so scarce — that both the United States and the European Union have labeled graphite a “critical supply metal.”Large Graphite Flakes

In the News

I've mentioned graphite to you a few times already.

The time to get in is now — before the mainstream comes running.

They're already getting wind of the profits about to be made...

Just look at some of the related headlines I found from the past few weeks:

  • The Graphite Investment Boom Is Just Getting Started – Seeking Alpha

  • Why Graphite Mining Stocks May Continue to Outperform – Resource Investor

  • More Flake Graphite Needed to Keep Pace with Surging Battery Demand – Business Insider

  • Graphite: Is This the Hottest Commodity on the Aussie Market Right Now? – Money Morning

The Best Free Investment You'll Ever Make

Our analysts have traveled the world over, dedicated to finding the best and most profitable investments in the global energy markets. All you have to do to join our Energy and Capital investment community is sign up for the newsletter below.


Enter your email:
We never spam! View our Privacy Policy

You'll also get our free report, "How to Play Rare Earth Today" by our resident expert Jeff Siegel.

I've said this market was shaping up to be just like the rare earth run of 2010. And so far, the trajectory it's taken has been identical...

Like rare earths, China controls more than 70% of production.

Like rare earths, China is starting to manipulate the market — adding export quotas and taxes and driving up the price.

Like rare earths, the need for this mineral is only rising, thanks to high-tech devices and batteries.

Like rare earths, companies outside China that have a real graphite supply will deliver thousands of percentage points to their shareholders.

But be careful...

Because like rare earths, there are many dishonest companies out there trying to jump on the bandwagon.

I've even seen a few that have changed their name to incorporate the word “graphite” in an attempt to trick naïve investors.

Don't be fooled. There's only one way to play the graphite bull market.

And that's with the one company that owns a 100% interest in the largest graphite mine outside of China.

Call it like you see it,

Nick Hodge Signature

Nick Hodge

follow basic@nickchodge on Twitter

Nick is the Founder and President of the Outsider Club, and the Investment Director of the thousands-strong stock advisory, Early Advantage. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

*Follow Outsider Club on Facebook and Twitter.


Energy demand will increase 58% over the next 25 years.

Trillions will be spent to secure the world's energy supply over the next two decades... and all sources are on the table.

Oil, Natural Gas, Solar, Wind. There will be money made.

Follow the money trail. Sign up for Energy and Capital now--It's free.

We never spam! View our Privacy Policy

By signing up, you'll also get our latest report, Six Oil & Gas Steals.


Related Articles

The Death of China's Rare Earth Monopoly
I firmly believe graphite miners are about to experience the thousand-percent run-ups witnessed by rare earth companies over the past few years.
Energy, Agriculture, Metals All Drifting Higher
We've all seen what the commodity supercycle has done to copper, gold, and many other resources. Copper, nickel, gold, wheat, corn and, of course, oil will never again see the prices of the nineties and early oughts.
Graphene Is a "Miracle Material"
I've been tight-lipped for a while, but it's finally time to show you what the BBC calls a "Miracle Material."
Solar Installations, Rare Earth Manipulations
It's 75 degrees and sunny in Baltimore this weekend. And it's St. Patrick's day. So go outside and plant something or drink a beer, I'll keep this to a brief recap of the week...


Where is the Oil Cycle?
Coal Investing Destroyed After Centuries of Dominance
Renewables Take Over
Marijuana Bank Investing
3 Guaranteed Profits: Gambling, Prostitution, and...
Russian Stocks are Cheap
Fortune Favors the Bold
Nuclear Investing After Iran Deal
Look at China
Invest in the Lithium Revolution
Lithium Demand is Going Berserk
Investing in the Tesla (NASDAQ: TSLA) Powerwall
Tesla (NASDAQ: TSLA) Just Killed Your Power Company
Tesla (NASDAQ: TSLA) Powerwall Investing
How to Make $800 Million in One Week!
Putin and Saudi Arabia: Oil Dream Team Meet
Renewable Energy is Killing Nuclear Power
No Hope for Nuclear