The Syrah Resources Ltd (ASX: SYR) share price is rapidly closing in on a new all-time high following a strong gain on Tuesday.
The graphite miner's shares finished the day 5.5% higher at $4.53.
Why are its shares higher?
Today's gain appears to be related to a pricing update released by lithium miner Orocobre Ltd (ASX: ORE) yesterday.
That update revealed that demand for lithium from battery makers and automakers remains strong and is outstripping supply.
As graphite is another ingredient in electric vehicle batteries, investors appear to be betting that graphite demand is also strong.
It isn't just graphite either. Nickel miner Western Areas Ltd (ASX: WSA) has caught the eye of investors and climbed notably higher today.
Which is bad news for short sellers. Both Syrah and Western Areas are amongst the most short shares on the ASX.
As was Aconex Ltd (ASX: ACX) prior to its $1.6 million takeover by Oracle this week.
