Graphite Has Become The Hottest Commodity On The Market Right Now
Tue, May 14, 2013
I have been following Graphite Stocks and the price of graphite for almost a year now. I blogged a graphite company way back in September; before graphite was hot, so I like to think I know what is up in the world of graphite.
Is Graphite the Next Bubble?
I get countless enquires from investors asking me if graphite is the next bubble. I don’t blame people for being so pessimistic we are in the decade of the “bubble” The real world has faced Real estate bubbles, Equity bubbles… the list is endless, even in the mining industry we have had our own bubbles, last year it was rare earths, and potash and in 2008 we had the great uranium bubble.
The mining industry is very cyclical; this is the nature of business, and graphite may very well become a bubble but as of now the price of graphite hasn’t even caught up with demand.
Graphite stocks have really taken off in the last few months but if all things go as planned this is only the start. Unlike Rare Earth Metals there is no replacement for graphite and we are discovering new uses for the stuff every day. Now I have had many people tell me that graphite is just another form of carbon. That maybe the case but the graphite we use commercially is the large flake graphite and that stuff is rare. Graphite is used to create graphene, graphoil, lubricants; Lithium ion batteries contain 10-14x more graphite than lithium. Graphite is also used as a steel-strengthening agent. Graphite is also used in fuel cells, and pebble bed reactors consume large amounts of graphite.
The future for this material is continuing to open up. Graphite has been, is, and will continue to be critically important to maintaining and advancing modern civilization. And this because it is in things we use every day, and because it is used in industrial processes that provide the foundation we build our society on.
Just like with rare earths last year China has announced it is planning on curbing exports and this is huge news because China controls over 75% of the production. They have been keeping the price of graphite low by dumping the market with cheap graphite. Up until recently, it hasn’t been economically viable to produce graphite here in North America, but things are about to change. The word on Howe street is that a certain graphite company has signed an off take agreement well over $7000 a ton. This is almost double the spot price.
Is Graphene Alien Technology???
The uses for graphene are limitless, it maybe the miracle material that humanity needs for survival, only time will tell.
Future Applications of Graphene
- Super computers that run at blazing fast speeds. Up too (2THZ)
- Electronics that do not require cooling devices
- Cell phones that are flexible and nearly unbreakable
- Super Strength materials
- Space Elevators
- Compact and more durable electronics that use about 1/100th of the electricity
Scientists have dubbed the upcoming century as “the carbon age” don’t be surprised if you see conventional metals being replaced by graphite in the near future.
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