Investment Opportunity

Spherical Graphite is a Highly Lucrative EV Industry Secret

Graphex Group Limited | Listed on: OTC:GRFXY | HK:6128

When you filter out the noise, lucrative investments can be discovered in plain sight. Such is the case with Graphex Group Ltd (OTCQX: GRFXY | Hong Kong: 6128), a jewel in the crown of the electric vehicle (EV) revolution. Here is a spherical graphite (SG) and coated spherical graphite (CSG) provider and little-known stock to watch.

Why You Should Consider Investing

Proven Production Process

Graphex Group has been perfecting its graphene refinement processes since 2008 and conducting high-quality commercial production since 2013.
Ready to Scale

Graphex is experienced in processing purified spherical graphite and is ready to scale rapidly to meet soaring demand.
Global Expansion

Graphex is expanding into western markets via the US and Europe, creating new jobs and placing itself at the heart of the Gigafactory action.
Expert Knowledge

The team’s decades of expertise and research in the anode material field leave Graphex superbly placed as a thought leader.
Strong Leadership Team

A committed team of industry specialists heads up the group with years of experience between them.
Ride the EV Wave

This is a chance to capitalise on the surging popularity of EVs, with anode material being an essential component of these wildly popular vehicles.

Why Consider Investing in Graphex

While you may not be aware of it, spherical graphite (SG) and coated spherical graphite (CSG) are critical to accelerating the performance of EV batteries and Graphex is the little-known stock you’ll want on your radar.

The importance of spherical graphite remains an EV industry secret that few people understand. And that’s what makes Graphex such an exciting and potentially lucrative investment opportunity.

Graphex takes the graphite from raw flake graphite to EV battery anode material. This means it’s a key part of the supply chain. Indeed, without spherical graphite, superior performing EVs will be in short supply.

Investment in the EV landscape has exploded in recent years, leading many of the rare opportunities for exponential growth to be uncovered. But thankfully not all.

Graphex is yet to be discovered by retail or institutional investors. But, graphite and its single atomic layer graphene, is crucial to the production of EV batteries. Therefore, it’s sure to be noticed very soon.

As EV investing becomes a crowded and confusing space, this is precisely the type of hidden gem savvy investors are on the lookout for.

“The value that we add to the ecosystem – and therefore to our own valuation - is huge. The mid-stream process that we handle from end to end produces a value increase of 17-20X - we can’t think of anyone else that is as close to doing any part of that at scale in the US as we are”.

Graphex CEO, Mr Andross Yick Yan Chan

Company Info

Graphex Group is a volume producer of spherical Graphite for Li-Ion battery anodes and provides professional services to the renewable energy sector.

Its Graphene Division manufactures 10,000 metric tonnes/pa of purified spherical graphite used for Li-Ion battery anodes in electric vehicles. Graphex also develop graphene applications and provide technology for producing coated spherical graphite.

Exchange / Symbol: OTCQX:GRFXY
Market Capitalization: $ (usd)

Current price: $ (usd)
Current mid price: $ (usd)

52 Week high price: $ (usd)
52 Week low price: $ (usd)

A Critical Business

So, what makes Graphex such an enticing investment in a sea of EV stocks?

As Graphex is a mid-stream processor, it does not mine for the raw graphite, and it does not build the batteries. It acts as a critical connector between the two and intends to diversify its business at both ends of this spectrum.

SG and CSG are key ingredients in the manufacture of lithium-ion (Li-ion) batteries and Graphex’s advanced production techniques leave the company uniquely placed to capitalize on soaring demand from EV battery makers.

For investors, that’s tough to ignore as Graphex presents a rare opportunity to buy shares in a crucial piece of the EV puzzle.

CSG, in particular, is seeing rising demand. That’s because pitch-coated spherical graphite is used as the anode material in lithium-ion batteries, and a typical EV can use around 70kg of spherical graphite or 1kg/kW.

This makes spherical graphite exactly the type of investment opportunity early-bird investors actively seek.

Little To No Competition

Graphex has been manufacturing SG and CSG commercially since 2013 and researching the process since 2008. Graphex currently operates its graphite processing plants in northeast China, near to one of the world’s largest natural graphite resources.

At Graphex, revenue is increasing, and business is thriving. In the first half of 2021, Graphex’s graphene products business revenues grew 27% YoY, and EBITDA rose 25% YoY.

These reasons alone make this a stock worth closer inspection, but it’s the future outlook that has investors really excited.

Graphex currently produces around 5% of China’s entire spherical graphite output. It’s a key player in the region and intends to transport this knowledge to the US and Europe.

With little to no competition that can scale in the way Graphex intends to, the company looks set to become a significant industry player in the west.

From a technical viewpoint, Graphex Group’s leadership team has some of the industry’s best and most knowledgeable individuals involved. With this clear understanding of their capabilities and strengths, the team is driving the company’s expansion with confidence.

The rich get richer by staying ahead of the investing curve, anticipating the next gold rush and jumping right in. While graphite is not gold, it’s vital to EV battery performance and sees soaring demand. Thus, Graphex presents a rare chance to invest in a potential money-spinning stock.

Pitch Coating Improves Performance

The pitch coating of spherical graphite is a technique used to enhance its lifespan. Each section of the battery has its part to play in ensuring maximum efficiency, but pitch-coating makes sure the anode is of optimal quality and performance.

That’s why Graphex intends to build Pitch Coating Plants in the US.

Building Graphex’s processing facilities at the heart of the EV action will give automakers access to local, high-quality anode material tailored to each Gigafactory’s specifications.

This push towards electrification is propelling the EV industry to pick up pace, and that’s why so many legacy carmakers are now onboard.

By meeting its customer needs at source, Graphex already lends itself an advantage. Furthermore, its extensive knowledge of all the ins and outs of anode material production gives it instant credibility and a head start on competitors (of which there are few).

Moreover, producing anode material in the United States makes good commercial sense on a supply chain basis.

China largely controls the world’s graphite supplies, and with geopolitical tensions heightened, the west would like to regain some of that control.

Therefore, Graphex Group sees a solid commercial opportunity to bring manufacturing processes to US soil, along with its proprietary tech and IP.

By generating jobs and prosperity where it’s much needed and demand is high, Graphex stands to grow and prosper rapidly.

Market Opportunity

Syrah Resources Ltd (AX: SYR) is another spherical graphite company operating a similar project to Graphex. This Australian firm has seen excellent success in the development of its battery anode material strategy that led it to secure an offtake agreement with Elon Musk’s Tesla (NASDAQ: TSLA) to supply natural graphite from its venture

This is an example of the potential possibilities that could lie ahead for Graphex. Indeed, the company has its sights set on the US and Europe to be close to the Gigafactories for that very reason.

Therefore, Graphex offers savvy investors a chance to get in early, to secure shares in a little-known company at a knockdown valuation. In fact, Graphex is so new to the market that even the institutions haven’t become aware of it yet. Once they do, retail interest is sure to surge. Syrah has over 23% of its shares now in institutional hands and it features in several mutual funds.

Graphex Group could have all this to come.

While climate change pressures spurred on the shift to electrification, rising fuel costs are further firing the transition. There’s an urgent need for fuel-efficient, low-emission, high performance vehicles and this is being exacerbated by the rapidly changing global economy.

Investing in the EV space can be overwhelming. The choice is immense and technicalities confusing. But if you’re an investor seeking a hidden gem in a sea of EV-themed stocks, look no further than Graphex.

Graphex is here to stay with the ambitious goal of being a top anode material producer globally. All of this stands to give investors the reassurance they need. To know that Graphex will still be here far into the future, delivering the secret ingredient so few people know exists - quality anode material made from spherical graphite - to the industries that demand it.

Don’t miss out, Graphex won’t remain a secret for long.

Discover how Graphex stock is placed to capitalize on soaring EV demand.

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