Tirupati Graphite PLC shares surged on Monday as it talked up its strategy and hailed itself as ‘one of very few’ graphite producers outside of China, after the country announced new export curbs on the substance last week.
Shares in the firm were 29% higher at 18.00 pence each in London on Monday morning.
Tirupati noted that while graphite prices have fallen in 2023, the export restrictions announced in China, as well as strong demand, will boost pricing.
The firm said: ‘By 2025, demand for graphite is expected to exceed supply and demand is expected to continue to outpace production growth until well into the next decade as the automotive industry ramps up [electric vehicle] production.
‘Tirupati expects the combination of increasing demand and supply shortfalls, alongside China’s export restrictions, to have a positive impact on Graphite prices which have fallen since the start of 2023. Tirupati also expects that ex-China consumers of flake graphite in energy transition sectors and others shall progress their efforts to secure ex-China supply sources for their flake graphite needs to mitigate increasing geopolitical risk surrounding it and other critical minerals.’
China on Friday announced new curbs on exports of certain types of graphite, key to making batteries for electric vehicles, days after the US slapped fresh restrictions on outflows of high-tech microchips, AFP reported.
China was the world’s leading graphite producer last year, accounting for an estimated 65% of total production, according to the US Geological Survey.
Tirupati said: ‘The company is one of very few current producers outside China, and one of only two quoted companies outside China that has brought globally significant new flake graphite production capacity into commercial production in the past decade, and at industry leading capital intensity levels.
It said the developments in China reinforced the company’s strategy. The firm has operations in Madagascar and projects in Mozambique, the largest producers of graphite outside of China. Together, the two African nations, separated by the Mozambique Channel, represent around 15% of current global flake graphite production, Tirupati said.
Executive Chair Shishir Poddar said: ’The implications of China’s export restrictions are positive for Tirupati both in terms of the likely impact on prices, and on the long-term demand for our product given our position as one of the few graphite producers outside of China.‘
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