Graphite groups got big share mark-ups on news China has tightened restrictions on the export of certain types of carbon material.
Tirupati Graphite, which jumped 25% this morning, said it expects the price of graphite to rise once the controls are introduced in December.
Flake graphite is the largest constituent of lithium-ion batteries used in electric vehicles (EVs) and grid energy storage.
China accounts for approximately 67% of global graphite production and is the dominant miner and downstream producer, according to Benchmark Mineral Intelligence.
Its move is part of an escalating trade war with the US, which recently imposed more restrictions on semiconductor sales to Chinese firms.
By 2025, Tirupati expects demand for graphite to exceed supply and to continue to outpace production growth until well into the next decade as the automotive industry ramps up EV production.
Tirupati Graphite has two mines in production in Madagascar and a development project in Mozambique.
On its own, it aims to be supplying 8% of the global market by 2030.
Others in the spotlight today included Blewcowe Resources, which owns the huge Orom-Cross project in Uganda, and Sovereign Metals, which is developing what it claims is potentially one of the largest and lowest cost natural rutile and graphite projects in the world in Malawi.
Blencowe, meanwhile, has already received backing from the US government through a US$5 million grant from its Development Finance Corporation agency.
Shishir Poddar, Tirupati’s executive chairman, suggests, if anything, there will be more Western involvement in primary graphite sources as tensions with China rise.
“The global dependence for graphite on China, a key component of the EV revolution, is a cause of growing concern for international customers as supply becomes increasingly constrained,” he said.
Shares in Tirupati were up 3.5p at 17.5p, Blencowe by 0.3p at 4.8p while Sovereign Metals was unchanged at 21p.