An Insider Tip On A Graphite Stock

Much ado has been made about the importance of rare earth elements for electric vehicles - but this graphite stock could be an even better pick-and-shovel play… ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   An Insider Tip On A Graphite Stock Dear Reader, What do the raw materials cobalt, manganese, nickel, lithium and aluminum have in common? They are all components of lithium-ion batteries and thus basic materials for electromobility. But there is one battery raw material that many investors do not even have on their radar: graphite. You’re probably quite familiar with graphite from school - it’s the main component of pencil lead, after all. But it has far more exciting uses than that… Graphite: Not Just For Pencils But first, some important background information for you: there is both natural and synthetic graphite. Natural graphite is a mining product and is obtained using conventional mining methods. Synthetic graphite is produced artificially using a coal-based process - for example, from lignite and hard coal. The distinction is important because the two graphite variants are in principle two completely different raw materials, each with their own established areas of application. Synthetic graphite, which is purer and used in more energy-intensive processes than pencil-making - is of interest to us as investors. How Graphite Is Used In Batteries The electrodes of lithium ion batteries are made with synthetic graphite. Experts estimate that around 1.1 kilograms of graphite are needed per kilowatt hour (KWh) of battery capacity in modern electric cars. An average battery (90 KWh) therefore requires 99 kilograms of graphite.  Sponsored Message [Detonating in 3… 2... 1…]( Declining smartphone sales is troubling for Apple… It’s like running an engine on a single battery connection. But Apple’s fate could change on January 25. On January 25, one tech investing expert believes Apple will announce a brand-new device — the "iPhone Killer," thus connecting its positive terminal (red). If he’s correct, certain stocks could soar when the Nasdaq opens trading. [Click here to learn more »](  Of course, even in its synthetic form, graphite is far from rare. Nevertheless, the USA declared it a critical raw material last year. The reason: as with other important materials, China controls it. China Dominates the Market According to current data from the Federal Institute for Geosciences and Natural Resources, the People's Republic is the most important producer, with a global share of nearly 74% of natural graphite and 49% of synthetic graphite. Accordingly, China could use its supremacy as political leverage and make it more difficult for Western countries or companies to gain access to the battery raw material. SGL Carbon ([SGLFF]( The German Graphite Stock All the more reason for Western companies to increase their output now in order to reduce their problematic dependence on China. As an investor, you can bet on this offensive. For example, with SGL Carbon shares.   The Wiesbaden-based group manufactures products made of carbon - including synthetic graphite. In the first nine months of 2021, the "Graphite Solutions'' business unit accounted for about 44% of consolidated sales, making it SGL Carbon's most important segment. Meanwhile, sales from the graphite business improved by 8%. Profit With Graphite Of particular interest to you: It is not only sales that have been on the upswing for the Business Area recently - SGL was also able to make a strong impact on profitability. The EBITDA of "Graphite Solutions" shot up by 36 percent to 67.5 million euros between January and the end of September. Incidentally, the company earned 42.6 million euros at the bottom line - after a loss of just under 4 million euros in the same period of the previous year. SGL Carbon attributes its strong performance primarily to the enormous demand for graphite products for electric cars. As the spread of electric cars is increasing at a rapid pace, the German group expects further increases in demand in the coming months and years and thus a flourishing graphite business. Shares Still Have Room for Improvement In recent weeks, however, the share price has tended to head south, in part because of the new Omicron variant of COVID-19, which is currently fueling economic fears. This makes the stock all the more favorable at present. In the long term, at any rate, the share should benefit from the boom in electromobility. This is also the view of most analysts. According to Marketscreener, the share price potential is in the high single-digit percentage range. One drawback to consider as a U.S. investor, however - is its low volume - the stock is thinly-traded over-the-counter. Best regards, Dr. Gregor Bauer Chief Analyst, European Markets © 2021 Godesburg Financial Publishing, Inc. DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. 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