Mining Weekly reported that investor interest in graphite has increased in the last year, outpacing the depressed markets. However, while the markets are booming, the threat of few serious development-phase graphite projects coming online, future supply is a concern.
Analyst Jeb Handwerger commented:
Graphite stocks have hit new highs and have recently pulled back, while gold and silver miners have hit two-year lows. This demonstrates excellent relative strength in an overall weak natural resource equity environment…
…There are not many graphite mines outside of China. Large economic deposits are rare and right now most operating mines in North America are small. We could see the need for 30 to 40 new graphite mines over the next decade.