General Discussions, page-2449

It sure is.

However, as there is no open air ‘auctioning’ within the dominate Chinese graphite supply chain (100% for PSG), the graphite price hike is yet to be reflected in the same way that the lithium price has rocketed in recent times.

In a conventional auction system the price goes to the highest bidder. However, the price pressure for graphite (Anode) is not as apparent and not under the same pressure as it has been for lithium (Cathode) because it’s occurring within a ‘closed’ market. This is about to change as the numerous Anode factories that are being built to keep up with the cell manufacturers’ demand (the people who put both the Cathode and Anode together) come online at a rapid rate.

Just as the market understands that there is a looming lithium shortage and has reacted accordingly, it will be shocked to learn that the graphite supply is also just as critical. No Anode manufacturer can afford to be left with a factory without supply to fulfil their contractual obligations to cell manufacturers.

So it begs the question. Will the graphite price rise be as dramatic as that of lithium? I think so and for reasons I’ve stated above, it will most likely be greater.

DYOR, All IMO, GLTA(Patient)