China produces over 70% of the world’s graphite and has been tightening exports of the vital mineral for years. Prices have soared exponentially. Manufacturers are worried about supply as Li-Ion batteries actually require more graphite than lithium. Maybe they should be called Li-Graphite Batteries.
Many analysts talk about demand as the driving force for higher commodity prices. While this is true in some cases, it is a lack of supply or production that usually drives the biggest gains in individual commodities. Uranium is a great example.