lithium ion graphite woefully short, page-3

Hi Pixby,
Its not too surprising that it hasn't been on investors radar, there's not much known about graphite outside the industry, opaque pricing, and very few opportunities to invest. SER is one of only two on the ASX and the only one offering flake (as opposed to amorphous) graphite, which is the product that is in demand.

A strategic aspect of graphite is the geographic concentration of supply. Over 80% of production is currently from China and there may be concerns from consumers about export restrictions and tariffs that China imposes on materials it deems strategic (e.g. rare earths). Even factors like the weather can severely disrupt supply (see article below). Supply security is what's driving the big investment push in lithium by car-makers, battery makers and stated backed resource companies. I don't see why it couldn't extend to other minerals vital to battery production.

Sorry you will have to log in to indmin.com to read this in full, I am not able to paste it. But you get the general idea...

http://www.indmin.com/Article/2374775/Shortages-in-Chinese-graphite.html

Shortages in Chinese Graphite
18 January 2010

Severe weather impacts graphite supply amid low inventories; price hikes possible...

The severe cold weather in China is starting to impact graphite supply, as production levels are much lower than normal and inventories are next to nothing...

This is putting upward pressure on prices which are firming...

To compound the problem for exporters of Chinese graphite, more material is being consumed in the domestic market as Chinese demand has not slackened...