Graphite One Inc (TSX-V: GPH) (OTCQX: GPHOF) is delighted to announce that its CEO and President, Anthony Huston, attended a White House meeting on investment and job creation, including the strategic Critical Mineral sector. Before the event, President Biden signed an Executive Order for a 25% tariff on Chinese imports, including natural graphite.
Huston was among a select group of company leaders invited to the event by President Joseph R. Biden which focused on investment and job creation in the Critical Mineral sector.
Addressing President Biden, Anthony Huston stated:
“Projects like Graphite One’s are important in so many ways – from job creation and the renewable energy transition to technology development and national security.”
The President spoke in the Rose Garden on Tuesday, May 14, 20241. His administration is increasing tariffs on $18 billion of Chinese imports to counter China's unfair trade practices. This move aims to protect American workers and businesses in key sectors while supporting Biden's broader economic agenda, which focuses on investing in American manufacturing and clean energy.
The White House tariff changes2 are the latest in a series of developments President Biden and his administration have implemented to ensure a worker-centered trade policy and confront unfair trade and the anti-competitive actions of countries like China.
The White House has emphasized the risks to national security and clean energy goals due to China’s control over critical minerals, including graphite.
Grouping graphite with rare earths – both sectors dominated by China – the White House statement reads that “The tariff rate on natural graphite and permanent magnets will increase from zero to 25% in 2026.” The 25% tariff on Chinese synthetic graphite is currently under an exclusion that expires at the end of May 2024.
Who is Graphite One?
Graphite One Inc (TSX-V: GPH) (OTCQX: GPHOF) is poised to play a crucial role in the tech industry and is anticipated to provide the essential materials that enable technological advancements. A potential market leader in the US graphite space, Graphite One (G1) is developing a sophisticated supply chain for American-produced advanced graphite materials.
Graphite One's strategy addresses supply chain vulnerabilities and benefits from government support, reinforcing its alignment with national objectives.
The company is advancing its Graphite One Project to produce high-grade anode materials from a domestic graphite resource. The company plans to mine, process, and manufacture anode materials for lithium-ion EV batteries. Graphite mineralization mined from its Graphite Creek Property in Alaska will be processed into concentrate and then used to produce natural and artificial graphite anode active materials and other graphite products at its proposed facility in Ohio. A production decision will follow the completion of a feasibility study, anticipated to be completed by the end of 2024, that is funded by the Department of Defense (DoD). Graphite One also plans to build a recycling facility at its Ohio base. The completion of the feasibility study and building of a recycling facility is subject to the company financing its share of the capital costs.
G1’s Graphite Creek deposit is recognized by the US Geological Survey as the largest graphite deposit in the US “and among the largest in the world”3. Graphite One’s natural flake graphite deposit is located in the Kigluaik Mountains 60 km north of Nome on the Seward Peninsula, Alaska.
The White House Visit
Being invited to the White House by President Biden is not only a significant honor for Anthony Huston but also a powerful endorsement of Graphite One. Such recognition from the highest levels of government underscores the company’s importance in securing domestically produced graphite and enhances its reputation as a key player in strengthening America’s supply chain resilience.
"I was honored to represent everyone at Graphite One in the meeting with President Biden,” said Anthony Huston.
“We appreciate his support for the renewable energy transition and G1 is excited to continue pushing forward to create a secure 100% U.S.-based supply chain for natural and synthetic graphite. The White House meeting underscores that projects like Graphite One’s are important in so many ways – from industrial investment and job creation to the renewable energy transition, technology development and national security.”
For Graphite One, the White House meeting is the latest accolade in a series of political endorsements and notable investments from key industry players and influential bodies.
Huston’s White House visit follows Graphite One’s completion of the initial planning process for its Ohio battery anode material plant, which will be built subject to financing. Senior management met with consultants and local suppliers to design and build the plant.
Committed to local hiring and workforce training, G1 plans to prioritize the Appalachia Ohio region for recruitment, where G1's advanced graphite materials manufacturing plant will be located. The company is developing labor agreements with local construction unions and has received letters of support from over two dozen Ohio organizations, including universities involved in technology development, workforce training, and renewable energy projects in disadvantaged communities.
Graphite One DoD Grant Progress
Graphite One has gained considerable support through two Department of Defense (DoD) grants totaling $42.2 million, including $37.5 million for a feasibility study and $4.7 million for developing a graphite-based foam fire suppressant.
Bolstered by these DoD grants and substantial investments from the Bering Strait Native Corporation and Taiga Mining Company, Inc., Graphite One's initiatives are well-endorsed, highlighting investor confidence in its strategic vision and future success. This validation underscores the critical value and potential impact of establishing a robust, US-based graphite supply chain.
A week before the White House event, Graphite One's senior management joined the Defense Logistics Agency (DLA) for a visit to project partner Vorbeck Materials' facilities in Maryland. This site visit marked the halfway point in a $4.7 million DLA-funded project to develop a graphite and graphene-based foam fire suppressant. This new suppressant, in compliance with US law, is driven by the need to replace current PFAS fire-suppressant materials that are detrimental to human health and the environment.
Also in May 2024, Graphite One senior management reviewed its $37.5 million Defense Production Act Title III grant with the DoD project team. The grant aims to accelerate the completion of Graphite One's feasibility study for its Graphite Creek deposit in Alaska. The filing of the feasibility study remains on schedule for completion by the end of 2024.
G1 CEO Anthony Huston commented:
“As we near completion of the Feasibility Study, we feel confident that DoD’s support is anticipated to cut about two years off our previous Feasibility Study timeline.”
G1’s 100% US-Based Supply Chain Strategy
Despite the presence of domestic graphite sources, the United States is currently entirely dependent on imports for its natural graphite supply. Graphite One is addressing this issue by planning to establish a 100% US-based graphite supply chain centered on its Graphite Creek deposit.
This initiative aligns with the Biden administration’s goal of reducing China’s dominance in critical minerals mining and refining. Demand for graphite is expected to soar, with The World Bank Group forecasting a 494% rise in the graphite market by 20504, and a report from President Joe Biden's administration predicts a 2500% surge in demand for graphite5 by 2040.
Graphite One’s supply chain project strategy includes building an advanced graphite material and battery anode manufacturing plant in Warren, Ohio, along with a recycling facility to reclaim graphite and other battery materials, all subject to financing. This planned recycling facility will also be located in Ohio, forming the third link in Graphite One’s circular economy strategy.
Data Sources:
YouTube: The White House Channel. President Biden Delivers Remarks on his Agenda to Promote American Investments and Jobs, May 14, 2024. https://www.youtube.com/watch?v=hqJkwKXuEO4
Whitehouse.gov. Fact Sheet: President Biden Takes Action to Protect American Workers and Businesses from China’s Unfair Trade Practices, May 14, 2024. https://www.whitehouse.gov/briefing-room/statements-releases/2024/05/14/fact-sheet-president-biden-takes-action-to-protect-american-workers-and-businesses-from-chinas-unfair-trade-practices/
U.S. Geological Survey. Insights into the metamorphic history and origin of flake graphite mineralization at the Graphite Creek graphite deposit, Seward Peninsula, Alaska, USA, February 27, 2023. https://link.springer.com/article/10.1007/s00126-023-01161-3
World Bank Group. Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition, 2020. https://pubdocs.worldbank.org/en/961711588875536384/Minerals-for-Climate-Action-The-Mineral-Intensity-of-the-Clean-Energy-Transition.pdf
Whitehouse.gov. Building Resilient Supply Chains, Revitalizing American Manufacturing, And Fostering Broad-Based Growth, June 2021. https://www.whitehouse.gov/wp-content/uploads/2021/06/100-day-supply-chain-review-report.pdf