Graphite One Secures Increased DoD Funding to Accelerate Feasibility Study

Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF) has announced a significant revision to its cost-share agreement with the U.S. Department of Defense (DoD), which will see the DoD increase its share of expenditures from 50% to 75% for the company's accelerated feasibility study. This change, based on a revised contract value of $49.8 million, brings the DoD's maximum contribution to $37.3 million. The study is a pivotal step in Graphite One's ambition to establish a 100% U.S.-based graphite materials supply chain.

Anthony Huston, Graphite One CEO and President, emphasized the importance of this development: "For our shareholders, this means that for every dollar we spend advancing the Graphite Creek accelerated Feasibility Study, G1 receives 75% of those expenditures in DoD grant funding rather than 50% upon submission. We welcome the support of the Department of Defense as we continue our efforts to build a U.S. industrial capacity that serves the renewable energy transition, technology development, and national security."

The Graphite Creek natural flake graphite deposit, located north of Nome, Alaska, remains on track to complete its feasibility study by December 2024, subject to financing. This deposit is the largest natural graphite deposit in the U.S. and is a critical component of Graphite One's plan to create a U.S.-based advanced graphite supply chain. The company's strategy also includes the development of an advanced graphite material and battery anode material manufacturing plant in Ohio and a co-located recycling facility to reclaim graphite and other battery materials.

Graphite One's initiative comes at a crucial time when the United States is entirely dependent on imports for natural graphite, predominantly from China. The company's efforts align with the Biden administration's goal to reduce China's dominance in critical minerals mining and refining. The World Bank Group projects a 494% increase in the graphite market by 2050, while the Biden administration anticipates a 2500% surge in demand for graphite by 2040.

The political and financial backing for Graphite One's project highlights its potential for long-term growth and its importance in the U.S. supply chain for renewable energy and technology sectors. The company has garnered support from government agencies and investments from local and indigenous communities, indicating strong investor confidence in its strategy.

Graphite One's future plans include mining, processing, manufacturing, and recycling graphite anode materials, primarily to supply the U.S. lithium-ion EV battery market and energy storage systems. The company aims to make a production decision upon completing its feasibility study.

Anthony Huston recently attended a White House meeting on investment and job creation, which included discussions on the strategic Critical Mineral sector. This invitation underscores the significance of Graphite One's role in the U.S. industrial landscape. The company's management team, known for its expertise in mine construction, process control design, and facility management, is poised to drive efficient operations and maximize profitability.

Graphite One's advancements are not just about meeting domestic demand but also about positioning the U.S. as a significant player in the global graphite market. As the world shifts towards renewable energy and advanced technologies, the importance of a stable and domestic supply of critical materials like graphite cannot be overstated.