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Graphite producers surge on the ASX

Graphite stocks are through the roof on the ASX after China, the world’s top graphite producer, announced it will tighten its grip on the mineral.

On Friday the Chinese commerce ministry announced that the country would begin restricting graphite trade, requiring export permits for certain products in an effort to protect its national interests and manufacturing dominance.

Graphite plays an essential role in the production of lithium-ion batteries for electric vehicles. Graphite forms roughly 95 per cent of the anode component in these batteries. China currently produces and refines the bulk majority of the world’s graphite and maintains a similarly dominant position with many critical minerals.

The development caused a stir on the ASX, with investors scrambling to existing and hopeful graphite producers in more agreeable jurisdictions like Australia.

Graphite hopeful Renascor Resources closed on Friday at a share price of $0.11 and cruised through Monday at a consistent $0.15.

Renascor is one of the highest profile Australian-focused graphite company’s on the ASX due to its Siviour battery anode material project in SA.

The Siviour mine area is massive, holding the world’s second largest proven graphite reserve and the largest graphite reserve outside of Africa. This could support a mining operation for 40 years.

Syrah Resources, the largest graphite producer outside of China, saw a significant leap. Share price sat around $0.44 on Friday and reached a height of $0.76 on Monday.

Black Rock Mining, which develops the Mahenge graphite project in Tanzania, was up 35.42 per cent to $0.13 per share at Monday close.

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