Graphite is no longer the silent partner of the energy transition—it is the backbone.
In the first part of this series, we explored how graphite, often overshadowed by lithium and nickel, is actually the largest component of a lithium-ion battery by weight.
Its unique properties make it indispensable not only for electric vehicles and grid storage, but also for defense and aerospace applications. With China tightening its grip on graphite exports and the U.S. declaring it a national security priority, the race is on to develop secure, ESG-compliant supply chains. Canada, with its rich resources and stable regulatory environment, is emerging as a global solution. Now, in this second part, we dive deeper into the assets and strategy of one company poised to lead this transformation.
The current situation
China is intensifying its control over graphite exports by expanding its licensing requirements to include artificial and mixed anode materials, along with the equipment and technologies used in their production. Under Announcement No. 58, effective November 8, 2025, exports of key processing systems will need approval from the Ministry of Commerce. This move builds on previous restrictions and signals a strategic escalation, reinforcing China’s dominance in the anode materials supply chain critical to the global energy transition. The urgency to act is clear: nations and industries must accelerate domestic investment in graphite production and processing to secure supply chains and capitalize on emerging opportunities in EVs, energy storage, and electronics.
This article is disseminated in partnership with Lomiko Metals Inc. It is intended to inform investors and should not be taken as a recommendation or financial advice.
The Canadian advantage
Canada, and particularly Québec, is emerging as a global leader in the development of critical minerals and junior mining company Lomiko Metals Inc. (TSX.V:LMR) is well positioned to benefit from this momentum, leveraging:
- World-class infrastructure: Québec offers reliable road access, rail networks, and proximity to ports.
- Clean hydroelectric power: A key advantage for ESG-conscious investors and downstream battery manufacturers.
- Skilled workforce: Québec’s mining and engineering talent pool is deep and experienced.
- Supportive policies: Both federal and provincial governments have committed billions to critical mineral development, including graphite and lithium.
This environment creates a fertile ground for Lomiko’s growth as a domestic supplier of battery-grade graphite.
Lomiko’s flagship asset – La Loutre Graphite Project
Located in southern Québec, the La Loutre Graphite Project is Lomiko’s cornerstone asset. It is 100 per cent owned and situated within the Kitigan Zibi Anishinabeg First Nation territory, approximately 180 km northwest of Montreal.
Resource highlights
- NI 43-101 Mineral Resource Estimate (2023):
- 64.7 million tonnes Indicated at 4.59 per cent Cg, containing 3.0 million tonnes of graphite
- 17.5 million tonnes Inferred at 3.51 per cent Cg, for an additional 0.65 million tonnes of graphite
Development roadmap
- Pre-Feasibility Study (PFS) underway, led by DRA Americas, Norda Stelo, and Knight-Piesold. Completion expected in Q1 2026, contingent on capital access. The PFS is supported by funding US Department of Defense under the Title II and the Research Agreement
- Bulk sampling and metallurgical testing are progressing, supported by funding from the Natural Resources Canada
Battery anode testing
- Half coin and pouch cell testing has shown promising results, with graphite performance meeting or exceeding industry standards for battery-grade anode material
- The project is modular in design, with plans to scale from a demo plant to full production
Secondary upside – Project, Ruisseau graphite
Lomiko Metals announced strong results from its spring 2025 exploration at the Ruisseau graphite property in Québec, with plans for a 2,500-metre drill program starting in November. The company focused on the Rune and La Roche zones, where sampling over the past three years revealed high-grade graphite mineralization—some samples exceeding 27 per cent graphitic carbon (Cg). The 2025 Beep-Mat prospecting program confirmed conductivity across wide surface areas, extending known strike lengths and identifying new drill targets. Rune now spans 1,450 metres and remains open, while La Roche was extended from 1,480 to 3,850 metres, with conductivity widths reaching up to 50 metres.
Geologically, both zones contain coarse graphite flakes within paragneiss, often rusty and associated with biotite and minor sulphides. Structurally, Rune and La Roche lie on opposite limbs of a synform, dipping moderately in opposite directions. Based on extensive geophysical and sampling data, Lomiko has selected 19 drill targets and initiated permitting for the upcoming program. Beyond graphite, the company also reported a gold discovery at its Yellow Fox site, with an outcrop grading 1.3 g/t Au. Combined with lithium potential, these findings enhance Lomiko’s position in the growing electric vehicle materials sector.
Financing and strategic positioning
Lomiko has secured non-dilutive funding from both Canadian and U.S. governments:
- US$8.35 million from the U.S. Department of Defense under the Defense Production Act
- C$4.9 million from Natural Resources Canada’s Critical Minerals R&D program
These grants significantly reduce capital risk and support the company’s transition from exploration to development.
Community partnerships
- Lomiko is ECOLOGO certified for reduced environmental and health impact
- Sustainability and ESG are central to its strategy, with decarbonization studies integrated into the PFS
On the horizon ….
With a strong asset base in graphite and emerging lithium potential, Lomiko Metals is well-positioned to become a key player in North America’s critical minerals supply chain.
In Part III, we’ll explore the investment thesis:
- Valuation metrics
- Risk factors
- Potential upside for investors in a rapidly evolving graphite market
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