Why is everyone talking about graphite and which ASX stocks have exposure?

ASX graphite stocks are drawing a lot of attention right now. Here's why…

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Key points

  • Lithium and other green metals have been in focus for many ASX investors
  • But even though graphite isn't a metal, its potential applications are also getting investors hot under the collar
  • So which ASX stocks are involved in producing graphite?

If 2021 and 2022 thus far have had an investing theme, green metals would have to be up there as a prime candidate.

A decade ago, most investors might not have even heard of lithium. Now, there are more than a few investors out there that think the key ingredient in rechargeable batteries is primed to be the gold of the 21st century.

Of course, this enthusiasm for green metals doesn't stop at lithium. Companies mining everything from vanadium to neodymium to cobalt have had a turn impressing investors over the past year or two. And graphite, and ASX graphite stocks, are no different.

Graphite is certainly getting some investors excited. As we covered earlier this week, one ASX analyst recently described graphite as "[looking] a lot more like lithium three to five years ago".

So what is graphite exactly? And which ASX stocks are involved in graphite production?

Looking for ASX graphite stocks…

Well, graphite isn't a metal, for starters. It's actually a form of carbon, the very same element that makes up most of life on earth. Not to mention coal and diamonds. You might know graphite best as the 'lead' in a lead pencil.

But graphite has been in focus recently due to its applications in rechargeable batteries, particularly those used in electric vehicles. This is largely thanks to the material's high electrical conductivity.

So which ASX stocks are involved in the graphite industry?

Well, perhaps the most prominent ASX graphite stock is Novonix Ltd (ASX: NVX). Novonix is a battery technology company that has been developing graphite for anodes for lithium-ion batteries. This company had a stellar stock price run last year, but has been brought back to earth over 2022 thus far. However, it is still up 141% over the past 12 months.

Syrah Resources Ltd (ASX: SYR) is another prominent ASX graphite stock. This miner reckons it has the "world's largest natural graphite resource" in its Balama Project in Mozambique. The company was also recently granted a loan agreement with the US Department of Energy to expand its anode facility in the US state of Louisiana. The Syrah share price has gained 53% in a year.

Black Rock Mining Ltd (ASX: BKT) is a final ASX graphite stock to take a look at. It owns the Mahenge Project in Tanzania. This is another of the world's largest natural graphite deposits. Black Rock shares have rocketed 114% over the past year.

So there are many options on the ASX to examine if one wants exposure to ASX graphite stocks and the graphite industry.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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