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Graphite companies surge after China curbs exports

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(Kitco News) - Graphite companies are up sharply since China announced last week it will limit the export of graphite.

Graphite is both mined and produced synthetically. It is a crystalline form of carbon.

China dominates the market, accounting for 67% of the natural form of the material. China also refines 90% of world graphite, according to Reuters.

Graphite is a key component of lithium-ion batteries. According to Benchmark Minerals Intelligence, natural graphite and active anode material demand will increase four and six times, respectively, over the next decade due to energy transition.

African miner Syrah Resources (ASX:SYR) traded up 41% today to 75 cents a share. It operates Balama, a 350ktpa graphite producer in Mozambique. Syrah is nearing the completion of an 11.25ktpa AAM facility at Vidalia in the U.S.

Quebec-focused Northern Graphite (TSX-V:NGC) was up 29% to 35 cents a share. Northern owns Lac des Iles (LDI), what the company calls the only significant graphite producing mine in North America. The Quebec mine is currently producing 15,000tpy of graphite concentrate based on remaining reserves.

Focus Graphite (TSX-V:FMS) is also focused on Quebec and advancing two projects in the province. The stock was up 31% to 29 cents a share.

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