Graphite One awarded $37.5 million Department of Defense Grant Under the Defense Production Act
Graphite One Inc. announced that it is has been awarded $37.5 million grant from the U.S. Department of Defense Technology Investment Agreement for the advancement of its graphite mining project in Nome, AK.
The grant is from Title III of the Defense Production Act (DPA), funded through the Inflation Reduction Act (IRA). The funding will be used 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 percent import-dependent for graphite, with China being the world’s leading producer.
In a statement, Graphite One wrote the DPA funding allows the company to accelerate its Feasibility Study covering its Graphite Creek Project 35 miles north of Nome. 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 world.”
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 percent 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 percent by 2050, to meet the growing demand for clean energy technologies.”
“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.”
“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 Huston. “Sen. 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; Sen. 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.”
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 million of which the DOD’s share is $37.5 million and the company’s share is $37.5 million.