Funding for feasibility study highlights graphite as a
battery material "essential for the national defense"
CEO: DoD Grant "underscores confidence in our strategy to
build a 100% U.S.-based advanced graphite supply chain"
VANCOUVER, BC, July 17,
2023 /CNW/ - Graphite One Inc. (TSXV: GPH)
(OTCQX: GPHOF) ("Graphite One", "G1" or the "Company"),
planning a complete domestic U.S. supply chain for advanced
graphite materials, announced today that its wholly owned
subsidiary, Graphite One (Alaska),
Inc. was awarded a Department of Defense ("DoD") Technology
Investment Agreement grant of $37.5
million under Title III of the Defense Production Act
("DPA"), funded through the Inflation Reduction Act ("IRA").
The funding objective of the DoD-Graphite One (Alaska) Technology Investment Agreement is to
perform an accelerated Feasibility Study to modernize and expand
domestic production capacity and supply for graphite battery anodes
necessary for electronic vehicles and alternative energy batteries,
as an essential national defense technology item.
The DoD grant to Graphite One follows the designation of
graphite as one of the battery materials deemed under the DPA law
to be "essential to the national defense." At present, the U.S. is
100% import-dependent for graphite, with China being the world's leading
producer1.
The DPA funding allows G1 to accelerate its Feasibility Study
covering its Graphite Creek Project 35 miles north of Nome, Alaska. Graphite Creek was recently
confirmed by the U.S. Geological Survey to be the country's largest
known graphite resource, and "among the largest in the
world2."
_______________________________
|
1 Graphite
deficit starting this year, as demand for EV battery anode
ingredient exceeds supply - MINING.COM
|
2 Insights
into the metamorphic history and origin of flake graphite
mineralization at the Graphite Creek graphite deposit, Seward
Peninsula, Alaska, USA | SpringerLink
|
DPA funding does not impact the permitting process for the
Graphite One Project.
"Graphite One is honored to receive this award from the
Department of Defense, funded by the IRA, and we look forward to
advancing our Feasibility Study program," said Anthony Huston, founder and CEO of G1. "This
Department of Defense grant underscores our confidence in our
strategy to build a 100% U.S.-based advanced graphite supply chain
– from mining to refining to recycling. The World Bank Group
reports that the production of minerals, including graphite, could
increase by nearly 500% by 2050, to meet the growing demand for
clean energy technologies3."
__________________________________
|
3
Climate-Smart Mining: Minerals for Climate Action
(worldbank.org)
|
"This investment to increase domestic capabilities for graphite
exemplifies Industrial Base Policy's commitment to building a
resilient industrial base to meet current and future national
defense requirements," said Dr. Laura
Taylor-Kale, Department of Defense Assistant Secretary for
Industrial Base Policy. "The agreement with Graphite One
(Alaska) is in furtherance of the
Defense Department's strategy for minerals and materials related to
large-capacity batteries."
"Graphite One thanks Assistant Secretary of Defense Taylor-Kale
and her DPA Title III team for their support of our proposal, and
we look forward to commencing the program," Mr. Huston
continued.
"All of us at Graphite One want to express our thanks for the
strong support we've received from public officials whose mission
it is to advance Alaska's and
America's best interests," said Mr. Huston. "Senator Lisa Murkowski, the thought leader in Congress
on critical minerals policy from her position on the Senate Energy
and Natural Resources Committee -- and an early advocate of
designating graphite and the other battery materials as Defense
Production Act Title III materials; Senator Dan Sullivan, the driving force behind a U.S.
Arctic Strategy from his position on the Senate Armed Services
Committee with his past service as Alaska's Director of the Department of Natural
Resources; Congresswoman Mary
Peltola, member of the House Natural Resources Committee and
a strong proponent of domestic resource development -- and of
course the late Don Young, Dean of
the House and from the very first, a strong supporter of our
project. At the state level, Graphite One thanks Governor
Mike Dunleavy for nominating us as a
High-Priority Infrastructure Project, and for his commitment to
making Alaska a leader in critical
minerals development."
Mr. Huston continued: "We also want to thank President Biden and
his White House staff for the decision to designate graphite and
the battery materials as DPA Title III materials, underscoring
their importance for the national economy and national
security."
The total amount covered under the Technology Investment
Agreement to fund the accelerated completion of the Feasibility
Study is approximately $75.0 million
of which the DOD's share is $37.5
million and the Company's share is $37.5 million.
Graphite One's Supply Chain
Strategy
With the United States
currently 100 percent import dependent for natural graphite,
Graphite One is planning to develop a complete U.S.-based, advanced
graphite supply chain solution anchored by the Graphite Creek
resource. The Graphite One project plan includes an advanced
graphite material and battery anode manufacturing plant expected to
be sited in Washington State
integrated with the development of the Property. The plan includes
a recycling facility to reclaim graphite and the other battery
materials, to be co-located at the Washington State site, the third link in
Graphite One's circular economy strategy.
About the Department of Defense's
Office of the Assistant Secretary of Defense for Industrial Base
Policy
Industrial Base Policy is the principal advisor to the Under
Secretary of Defense for Acquisition and Sustainment (USD(A&S))
for developing Department of Defense policies for the maintenance
of the United States defense
industrial base (DIB), executing small business programs and
policy, and conduction geo-economic analysis and assessments. The
office also provides the USD(A&S) with recommendations on
budget matters related to the DIB, anticipates and closes gaps in
manufacturing capabilities for defense systems, and assesses
impacts related to mergers, acquisition, and divestitures. IBP
monitors and assesses the impact of foreign investments in
the United States and executes
authorities under sections 2501 and 2505 U.S.C. Title 10.
About the Department of Defense's
Defense Production Act (DPA) Title III Program:
The Defense Production Act (the "DPA") is intended to ensure
that America has the resources, materials and technologies needed
for national security. The DPA Title III program is dedicated to
ensuring the timely availability of essential domestic industrial
resources to support national defense and homeland security
requirements now and in the future.
In order to qualify for funding opportunities under the DPA
Title III, proposed projects must meet the following criteria:
- The industrial resource, material, or critical technology item
is essential to the national defense
- Without Presidential action, United
States industry cannot reasonably be expected to provide the
capability for the needed industrial resource, material, or
critical technology item in a timely manner
- Purchases, purchase commitments, or other action pursuant to
the DPA are the most cost effective, expedient, and practical
alternative method for meeting the need
About Graphite One Inc.
GRAPHITE ONE INC. (TSX‐V: GPH;
OTCQX: GPHOF) continues to develop its Graphite One Project (the
"Project") to become an American producer of high-grade anode
materials that is integrated with a domestic graphite resource. The
Project is proposed as a vertically integrated enterprise to mine,
process and manufacture anode materials primarily for the
lithium‐ion electric vehicle battery market. As set forth in the
Company's 2022 Pre-Feasibility Study, graphite mineralization mined
from the Company's Graphite Creek Property, situated on the
Seward Peninsula about 60
kilometers north of Nome, Alaska,
would be processed into concentrate at an adjacent processing
plant. Natural and artificial graphite anode materials and other
value‐added graphite products would be manufactured from the
concentrate and other materials at the Company's proposed advanced
graphite materials manufacturing facility expected to be located in
Washington State. The Company
intends to make a production decision on the Project upon the
completion of a Feasibility Study.
On Behalf of the Board of Directors
"Anthony Huston" (signed)
For more information on Graphite One Inc., please visit the
Company's website, www.GraphiteOneInc.com
On Twitter @GraphiteOne
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
All statements in this release, other than statements of
historical facts, including those related to the timing and
completion of the anticipated Feasibility Study, future production,
establishment of a processing plant and a graphite manufacturing
plant, establishment of a battery materials recycling facility, and
events or developments that the Company intends, expects, plans, or
proposes are forward-looking statements Generally,
forward‐looking information can be identified by the
use of forward‐looking terminology such as
"proposes", "expects", "is expected", "scheduled", "estimates",
"projects", "plans", "is planning", "intends", "assumes",
"believes", "indicates", "to be" or variations of such words and
phrases that state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". The Company cautions that there is no certainty that
tests of the Company's material will be successful or that such
tests will result in the development of successful products.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results or developments may differ materially from those in the
forward-looking statements. Factors that could cause actual results
to differ materially from those in forward-looking statements
include market prices, exploitation and exploration successes,
continuity of mineralization, uncertainties related to the ability
to obtain necessary permits, licenses and title and delays due to
third party opposition, changes in government policies regarding
mining and natural resource exploration and exploitation, and
continued availability of capital and financing, and general
economic, market or business conditions. Readers are cautioned not
to place undue reliance on this forward-looking information, which
is given as of the date it is expressed in this press release, and
the Company undertakes no obligation to update publicly or revise
any forward-looking information, except as required by applicable
securities laws. For more information on the Company, investors
should review the Company's continuous disclosure filings that are
available at www.sedar.com.
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SOURCE Graphite One Inc.