Tirupati Graphite, a renowned graphite, graphene, and advanced-materials company, is poised to benefit significantly from the recent surge in graphite prices and demand. This upturn in the market can be attributed to China’s export restrictions, as Tirupati Graphite stands out as one of the few producers based outside of China.
As of 0704 GMT, Tirupati Graphite shares experienced a remarkable increase of 20%, or 2.75 pence, reaching 16.75 pence.
Anticipated Surge in Demand
The company predicts that the demand for graphite, a vital component of lithium-ion batteries, will surpass supply by 2025 and continue to outpace production growth well into the next decade. This projection further reinforces the positive outlook for graphite-oriented businesses.
Positive Impacts of Export Controls
Tirupati Graphite highlights that the recent decline in graphite prices is likely to reverse due to increased demand and supply shortfalls. Additionally, China’s implementation of export controls on graphite and related products from December 31st is expected to further benefit graphite prices. This development is vital for sustaining global industries dependent on graphite and addressing concerns over China’s monopolistic hold on the market.
According to Executive Chairman Shishir Poddar, “The global dependence on China for graphite, a crucial element in the electric vehicle revolution, has raised significant concerns among international customers as supply becomes increasingly limited.” Consequently, consumers in energy-transition sectors who rely on flake graphite are actively seeking alternative sources outside of China to mitigate geopolitical risks.
Tirupati Graphite’s Remarkable Position
Notably, Tirupati Graphite is a London-listed company that primarily supplies natural flake graphite from its mines in Madagascar. Additionally, it has ongoing development projects in Mozambique. These operations place Tirupati Graphite in a unique position as one of the largest graphite producers outside of China.
In conclusion, Tirupati Graphite is well-positioned to thrive in the evolving global market. With its strategic location and commitment to meeting increasing demand, the company is set to play a pivotal role in satisfying the graphite needs of industries worldwide.