None more so than Liontown, with its share price up by 67% in just four days.

But one expert is reminding investors that it takes more than just lithium to make an electric car battery.

He says another way to leverage the "mega-trend of vehicle electrification" is through ASX graphite shares.

Graphite almost as important as lithium, says expert

Westpac Banking Corp (ASX: WBC) hosted a webinar this week on the future of lithium investment.

Among the speakers was Matthew Frydman, a senior research analyst specialising in metals and mining at MST Financial.

Frydman said there was a "j curve of adoption for electric vehicles", and this would be a long-term trend benefitting several commodities.

MST Financial presented a chart sourced from Mineral Resources Ltd (ASX: MIN) showing that global sales of EVs are expected to rise from 11 million as of 2021 to more than 60 million by 2030.

Australia aims to have 3.8 million EVs on the roads by 2030.

Frydman said even though lithium commodity prices were falling, the medium-term outlook for Australia's established producers was 'still very favourable'.

But he also said lithium wasn't the only commodity that would benefit from the EV megatrend.

While lithium is a well-known key component of EV batteries, with 40kg to 50kg of the carbonate variety used per car, Frydman said graphite was "almost as critically important to the chemistry of the battery".

He explains:

Lithium is really important to the cathode side of the battery, graphite is absolutely critical to the anode component — the other half of the battery.

Graphite, like lithium, will be a rapidly growing market … and really, globally, there's probably not too many widely-known graphite projects that are out there in the common knowledge.

2 ASX graphite shares that could be worth a look

Frydman said there were two ASX graphite stocks worth mentioning for Australian investors interested in leveraging the EV trend.

Firstly Syrah Resources Ltd (ASX: SYR). They have the biggest natural graphite deposit in the world in Balama in Mozambique. That was a mine which was developed a number of years ago and is currently producing [and is] really a stand-out in terms of the size and scale and quality of that deposit.

Balama and Syrah will be absolutely critical to supplying the market's graphite needs in coming years.

The Syrah Resources share price closed on Friday at $1.84. It is up 8.9% over the past year.

The second ASX graphite stock Frydman highlighted was Black Rock Mining Ltd (ASX: BKT).

He said:

They have a very large and reasonably high grade deposit that they are developing in Tanzania and they're quite advanced relative to the peer group and potentially will form part of that supply solution for graphite in the coming years. 

The Black Rock share price closed on Friday at 14 cents. It is down 48% over the past year.

Graphite market at a turning point

At an industry event in November last year, Andy Miller, COO of Benchmark Mineral Intelligence, said the mined and synthetic graphite market was at a turning point (courtesy mining.com).

Benchmark predicts that graphite demand will grow at an annual compound rate of 10.5% over the next 10 years, but supply will only expand by 5.7% per annum.

Benchmark's Natural Flake Graphite Forecast tips the battery industry will consume two-thirds of the world's flake graphite by 2025, increasing to 79% in 2030.

Graphite has traditionally been used in steel-making.

The post It ain't all about lithium: 2 other ASX shares exposed to the EV trend appeared first on The Motley Fool Australia.

The Black Rock Mining Ltd (ASX: BKT), Classic Minerals Ltd (ASX: CLZ), and Mineral Resources Limited (ASX: MIN) share prices are all well in the green today.

Let's take a look at what is going on with these mining shares.

Classic Minerals

The Classic Minerals share price is exploding 187.5% today.

Classic Minerals has signed a $10 million funding agreement on the company's Kat Gap Gold project in Western Australia.

Goldvalley Brown Stone Pty Ltd will provide funding for the extraction and processing of ore from the Kat Gap project. Under the deal, Classic will receive 70% of the net profits from gold production, while Goldvalley will receive 30%.

Chairman John Lester highlighted Classic now has a "clear path to mining and processing of gold". He added: "We have begun the transition from explorer to producer and shareholder patience will be rewarded."

Black Rock Mining

Black Rock shares are rocketing 20.69% higher today. The company's 84% owned subsidiary, Faru Graphite Corporation Limited, has signed an agreement with Urbix for material from module two of the Mahenge Graphite Project in Tanzania.

Urbix is a cleantech refining company working on lithium-ion battery anode materials in the USA. The companies will work together to establish a new supply chain for the US and European battery industries.

Commenting on the news, Black Rock CEO John de Vries said:

Signing this agreement with Urbix is potentially transformational in the context that we are developing an additional USA and European option for the processing of Black Rock's graphite into battery applications.

Mineral Resources

The Mineral Resources share price is soaring 12% today to $70.54. This follows the company neither confirming or denying speculation it is planning to spin off and list its lithium business in the USA.

This follows news of the potential plan appearing in the Australian Financial Review last night. Analysts believe Mineral Resources' lithium arm accounts for more than 50% of the company's value.

In a response to the speculation, Mineral Resources said:

MinRes wishes to advise that, in the normal course of business, it regularly evaluates various strategic options to maximise value creation for shareholders, including in relation to its lithium business.

The post 3 ASX mining shares shooting the lights out on Friday appeared first on The Motley Fool Australia.

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.

The post Why is everyone talking about graphite and which ASX stocks have exposure? appeared first on The Motley Fool Australia.

One ASX graphite share that surged today was Black Rock Mining Ltd (ASX: BKT). The company's share price soared 16% to 33 cents late in the session before closing at 31.5 cents, 10.53% higher.

Other ASX graphite shares include Syrah Resources Ltd (ASX: SYR) and Evolution Energy Minerals (ASX: EV1). The Syrah share price climbed 1.39% today while Evolution Energy closed up 6.1%, after shooting almost 16% higher at one stage.

So could ASX graphite shares be next in line for a boom like lithium shares?

Could graphite surge like lithium?

Analysts at Credit Suisse are predicting graphite prices to surge within the next five years, just like lithium. Graphite is another essential component of EV batteries.

In comments reported by The Age, analyst Phineas Glover said:

It looks a lot more like lithium three to five years ago.

In five years' time, suddenly graphite pricing will have gone up in my view quite significantly, and it will bring a huge incentive to bring all these projects on board.

Glover predicts supply will fall 32% short by 2025 with demand for graphite to increase fivefold in 2050.

Certainly, Black Rock's chief executive John de Vries also foresees a positive future for graphite. He told The Age:

I genuinely think the world got lithium, and the next thing that's going to come will be the conversation around 'we forgot about graphite'.

Black Rock is currently exploring the Mahenge graphite project in Tanzania in east Africa.

Share price recap

The Black Rock Mining share price has rocketed 121% in a year. Meanwhile, the Evolution Energy Minerals share price has surged 122% over the past year, while Syrah Resources has charged 74% higher.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 8% in a year.

The post This forgotten battery metal 'looks like lithium 3 to 5 years ago': analysts appeared first on The Motley Fool Australia.

During mid-afternoon trade, the Australian mining company's shares are swapping hands for 22 cents, up 18.92%.

What did Black Rock announce?

Investors are driving up the Black Rock share price following an expected positive outcome from the Government of Tanzania.

In its release, Black Rock said it had received an invitation to attend a ceremony in Dar es Salaam, Tanzania. The company hopes to reach a final agreement on the Mahenge project with the Tanzanian government at the event, scheduled for 13 December.

Signifying the importance of the meeting, the company's managing director, John de Vries, is currently in Tanzania and will attend.

Quick take on Black Rock

Established in 2000, Black Rock is an Australian mining company focused on developing its Mahenge project. It is known to be the world's fourth-largest graphite resource, indicating huge potential for the future.

Demand for graphite has grown considerably and is expected to double in the next decade. This is due to the strong adoption by consumers for batteries in electric vehicles and other emerging applications.

A strategic alliance with the POSCO Group saw an equity investment of US$7.5 million for the development of the Mahenge project. This enabled Black Rock to complete detailed engineering, early site clearance planning, and commercial-scale product qualification.

The company is now construction-ready. However, this is subject to financing and confirmation of the Tanzanian Government free carried interest agreement.

Black Rock share price summary

Over the past 12 months, the Black Rock share price has surged by more than 140%. This year to date is has accelerated 120%. The company's shares have gradually increased throughout the period on the back of investor hype in the graphite space.

Black Rock commands a market capitalisation of around $181.75 million and has approximately 865.49 million shares outstanding.

The post The Black Rock Mining (ASX:BKT) share price is rocketing 19%. Here's why appeared first on The Motley Fool Australia.

Established in 2000, Black Rock is an Australian mining company focused on developing its Mahenge Graphite Project in Tanzania. It is known to be the world's fourth-largest graphite resource. Thus, indicating huge potential for the future. Indeed, demand for graphite has grown considerably and is expected to double in the next decade. This is due to the strong adoption by consumers for batteries in electric vehicles and other emerging applications.

So let's take a closer look at what was in the announcement.

FIRB outcome

Black Rock has received a positive outcome from the Foreign Investment Review Board (FIRB) decision. According to its release, Black Rock advised that the Commonwealth Treasurer, acting on the advice of the FIRB, has approved POSCO for a 15% interest in Black Rock. Nevertheless, the Black Rock share price is in negative territory. 

Consequently, POSCO will invest US$7.5 million as part of its Subscription & Umbrella agreements. The successful result will enable both companies to form a strategic alliance for the development of the Mahenge Graphite Project.

Currently, Black Rock and POSCO are continuing to work together to satisfy the remaining conditions for Tanzanian Government Fair Competition Commission approval. It is expected that this will be procedural and routine.

In the near future, Black Rock will hold a general meeting to obtain shareholder approval for the POSCO transaction. Should the company get the green light, it will issue over 126 million shares to POSCO at a placement price of 8.2 cents apiece.

What did management say?

Black Rock managing director and CEO John de Vries commented:

Access to POSCO's equity contribution of US$7.5m enables Black Rock and our 100% owned Tanzanian subsidiary Mahenge Resources Ltd, to complete detailed engineering, early site clearance planning and commercial scale product qualification. With this, the Mahenge Graphite Project will be positioned to complete required financing in an efficient and timely manner.

The Company anticipates site works in the second half of CY2021, pending resolution of the Government of Tanzania Free Carry Interest Agreement.

About the Black Rock share price

The Black Rock share price has gained close to 250% in the past 12 months, and 45% year-to-date. Interestingly, the company's shares have raced higher on the back of renewed investor confidence in the materials sector.

Based on the current share price, Black Rock commands a market capitalisation of around $100 million.

The post Black Rock (ASX:BKT) share price falls on FIRB outcome appeared first on The Motley Fool Australia.