Graphite One Study Accelerates with 75% DoD Funding
05.07.2024 | NewsDirect
Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF) is pleased to announce a revision to the cost-share ratio governing G1's Defense Production Act grant in July 2023 to facilitate the accelerated completion of its feasibility study. This is key to progressing the company's planned 100% US-based graphite materials supply chain.The revised cost-share agreement with the DoD will increase the DoD's share of expenditures related to Graphite One's accelerated feasibility study from 50% to 75% based on a revised contract value of $49.8M. Given this amendment, the DoD's maximum share of the accelerated feasibility study program is now $37.3M.
G1 has confirmed to the DoD's project oversight team that its Graphite Creek natural flake graphite deposit north of Nome, Alaska, remains on schedule to complete this feasibility study as planned by December 2024, subject to financing.
Anthony Huston, Graphite One CEO and President, commented:
"This development in our planned 100% U.S.-based graphite supply chain demonstrates the momentum Graphite One is building.
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."
Discover more about Graphite One's plans to transform the U.S. graphite industry.
Pioneering US Graphite Expansion
Graphite One highlights a significant opportunity in the graphite market. The United States is 100% reliant on imports of natural graphite with much of this coming from China1. Therefore, G1 aims to change this by creating a US-based advanced graphite supply chain solution anchored by its Graphite Creek deposit. These latest developments should help position the company in its quest to meet growing demand domestically.
Graphite Creek is the largest natural graphite deposit in the U.S. "and among the largest in the world", according to the US Geological Survey2. This deposit is the first link in G1's US graphite supply chain plan to become an American producer of high-grade anode materials that integrate with a domestic graphite resource. The second link in the plan is an advanced graphite material and battery anode material manufacturing plant in Ohio. Finally, the third component of the company's circular economy strategy is to co-locate a recycling facility at the Ohio site to reclaim graphite and other battery materials. The execution and creation of a US-based advanced graphite supply chain solution is subject to financing.
The scale of G1's Graphite Creek deposit, political support for the project, and recognition by government agencies as to its viability, also indicate the potential for long-term growth. Furthermore, government funding and investments by local and indigenous communities underscore investor confidence in Graphite One's strategy.
Ultimately, G1's US supply chain 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 continue to grow, with The World Bank Group forecasting a 494% rise in the graphite market by 20503, and a report from President Joe Biden's administration predicts a 2500% surge in demand for graphite by 20404.
About Graphite One
With the plan to create three integrated operational pillars, G1 is on a mission to become a significant player in the US graphite supply chain as its future plans are to mine, process, manufacture, and recycle graphite anode materials. It is anticipated that this will primarily supply the US lithium-ion EV battery market and energy storage systems.
As set forth in the company's 2022 pre-feasibility study, graphite mineralization mined from the company's Graphite Creek property in Alaska would be processed into concentrate at an adjacent processing plant. Then, natural and artificial graphite anode active materials and other value?added graphite products would be manufactured from the concentrate and other materials at G1's proposed advanced graphite materials manufacturing facility located in northeastern Ohio.
Graphite One intends to make a production decision on the project upon the completion of its feasibility study.
Company CEO and President Anthony Huston recently attended a White House meeting on investment and job creation5, including the strategic Critical Mineral sector. Huston was among a select group of company leaders invited to the event by President Joseph R. Biden.
G1's management team excels in mine construction, process control design, and facility management. Their extensive expertise ensures efficient operations and a commitment to cost efficiency to maximize profitability. Graphite One has assembled a team of individuals who are not just capable but are ready to drive business growth and deliver enduring value to stakeholders over the long term.
Discover more about Graphite One's plans to transform the U.S. graphite industry.
Data Sources:
- S&P Global Mobility. BriefCASE: US facing challenges in its attempts to diversify its graphite supply chain, March 20, 2024. https://www.spglobal.com/mobility/en/research-analysis/us-graphite-supply-chain-expansion-dimming-import-needs.html
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
Graphite One Inc. Graphite One CEO and President, Anthony Huston, Invited by President Biden to White House Investment and Job Creation Session; White House Sets 25% Tariff on Chinese Graphite. May 15, 2024. https://www.graphiteoneinc.com/graphite-one-ceo-and-president-anthony-huston-invited-by-president-biden-to-white-house-investment-and-job-creation-session-white-house-sets-25-tariff-on-chinese-graphite/
IMPORTANT NOTICE AND DISCLAIMER
PAID ADVERTISEMENT
This communication is a paid advertisement. ValueTheMarkets is a trading name of Digitonic Ltd, and its owners, directors, officers, employees, affiliates, agents and assigns (collectively the "Publisher") is often paid by one or more of the profiled companies or a third party to disseminate these types of communications. In this case, the Publisher has been compensated by Graphite One Inc. to conduct investor awareness advertising and marketing and has paid the Publisher the equivalent of fifty thousand US dollars per month for a 12-month period starting 24 April 2024 until 23 April 2025 to produce and disseminate this and other similar articles and certain related banner advertisements. This compensation should be viewed as a major conflict with the Publisher's ability to provide unbiased information or opinion.
CHANGES IN SHARE TRADING AND PRICE
Readers should beware that third parties, profiled companies, and/or their affiliates may liquidate shares of the profiled companies at any time, including at or near the time you receive this communication, which has the potential to adversely affect share prices. Frequently companies profiled in our articles experience a large increase in share trading volume and share price during the course of investor awareness marketing, which often ends as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in share trading volume and share price may likely occur.
NO OFFER TO SELL OR BUY SECURITIES
This communication is not, and should not be construed to be, an offer to sell or a solicitation of an offer to buy any security.
INFORMATION
Neither this communication nor the Publisher purport to provide a complete analysis of any company or its financial position. This communication is based on information generally available to the public and on an interview conducted with the company's CEO, and does not contain any material, non-public information. The information on which it is based is believed to be reliable. Nevertheless, the Publisher does not guarantee the accuracy or completeness of the information. Further, the information in this communication is not updated after publication and may become inaccurate or outdated. No reliance should be placed on the price or statistics information and no responsibility or liability is accepted for any error or inaccuracy. Any statements made should not be taken as an endorsement of analyst views.
NO FINANCIAL ADVICE
The Publisher is not, and does not purport to be, a broker-dealer or registered investment adviser or a financial adviser. The Publisher has no access to non-public information about publicly traded companies. The information provided is general and impersonal, and is not tailored to any particular individual's financial situation or investment objective(s) and this communication is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular investor or a personal recommendation to deal or invest in any particular company or product. Any investment should be made only after consulting a professional investment advisor and only after reviewing the financial statements and other pertinent corporate information about the company. Further, readers are advised to read and carefully consider the Risk Factors identified and discussed in the advertised company's SEC, SEDAR+ and/or other government filings. Investing in securities, particularly microcap securities, is speculative and carries a high degree of risk. Past performance does not guarantee future results.
FORWARD LOOKING STATEMENTS
This communication contains forward-looking statements, including statements regarding expected continual growth of the featured companies and/or industry. Statements in this communication that look forward in time, which include everything other than historical information, are based on assumptions and estimates by our content providers and involve risks and uncertainties that may affect the profiled company's actual results of operations. These statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results and performance to differ materially from any future results or performance expressed or implied in the forward-looking statements. These risks, uncertainties and other factors include, among others: the success of the profiled company's operations; the size and growth of the market for the company's products and services; the company's ability to fund its capital requirements in the near term and long term; pricing pressures; changes in business strategy, practices or customer relationships; general worldwide economic and business conditions; currency exchange and interest rate fluctuations; government, statutory, regulatory or administrative initiatives affecting the company's business.
INDEMNIFICATION/RELEASE OF LIABILITY
By reading this communication, you acknowledge that you have read and understand this disclaimer in full, and agree and accept that the Publisher provides no warranty in respect of the communication or the profiled company and accepts no liability whatsoever. You acknowledge and accept this disclaimer and that, to the greatest extent permitted under applicable law, you release and hold harmless the Publisher from any and all liability, damages, injury and adverse consequences arising from your use of this communication. You further agree that you are solely responsible for any financial outcome related to or arising from your investment decisions.
TERMS OF USE AND DISCLAIMER
By reading this communication you agree that you have reviewed and fully agree to the Terms of Use found here https://www.valuethemarkets.com/terms-conditions/ and acknowledge that you have reviewed the Disclaimer found here https://www.valuethemarkets.com/disclaimer/. If you do not agree to the Terms of Use, please contact valuethemarkets.com to discontinue receiving future communications.
INTELLECTUAL PROPERTY
All trademarks used in this communication are the property of their respective trademark holders. Other than valuethemarkets.com, the Publisher is not affiliated, connected, or associated with, and the communication is not sponsored, approved, or originated by, the trademark holders unless otherwise stated. No claim is made by the Publisher to any rights in any third-party trademarks other than valuethemarkets.com.
AUTHORS: VALUETHEMARKETS
valuethemarkets.com and Digitonic Ltd and our affiliates are not responsible for the content or accuracy of this article. The information included in this article is based solely on information provided by the company or companies mentioned above. This article does not provide any financial advice and is not a recommendation to deal in any securities or product. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance.ValueTheMarkets do not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above piece. ValueTheMarkets have been paid to produce this piece by the company or companies mentioned above. Digitonic Ltd, the owner of valuethemarkets.com, has been paid for the production of this piece by the company or companies mentioned above.
Contact Details
ValueTheMarkets
+44 141 530 4080
editor@valuethemarkets.com
Company Website
https://www.valuethemarkets.com
View source version on newsdirect.com: https://newsdirect.com/news/graphite-one-study-accelerates-with-75-dod-funding-789588278