HPQ Silicon Inc. (HPQFF)

[GreyGoose_69]

This article speculates that Graphite Stocks have risen too fast based in relation to supply and battery hype, but check this statement out:

http://www.reuters.com/article/2012/05/06/canada-column-markets-idUSL1E8G3NBY20120506?type=companyNews&feedType=RSS&feedName=companyNews&rpc=43

"The uptake in battery growth is a little over hyped, I think, given that most of the graphite demand today for lithium ion batteries is for synthetic graphite," said Jonathan Lee, a battery materials analyst with Byron Capital Markets.

That may change, however. Synthetic graphite can cost more than $20,000 a tonne, while unprocessed flake graphite costs $1,500 to $3,000 a tonne. Add in processing and coating, and the price is about $8,000 a tonne, meaning natural graphite represents major cost savings.

The price differential has analysts and would-be miners speculating that as demand for lithium ion batteries grows and battery makers need to buy more graphite, they will eventually choose cheaper natural flake over synthetic.