What is graphite?
Graphite is a naturally occurring form of carbon characterized by its layered structure, which gives it unique properties such as high thermal and electrical conductivity, lubricity, and resistance to heat. It is found in metamorphic and igneous rocks and is mined in various parts of the world.
Core uses of graphite
Graphite is a versatile material with a wide range of applications, including:
- Lithium-ion batteries: Graphite is a key component in the anodes of lithium-ion batteries, which are essential for electric vehicles (EVs) and portable electronics.
- Fuel cells: Used in the production of bipolar plates for fuel cells, graphite contributes to the efficiency and durability of these clean energy devices.
- Electric vehicles (EVs): Beyond batteries, graphite is used in various components of EVs, enhancing performance and longevity.
- Electronics and semiconductors: Graphite’s conductive properties make it valuable in the manufacturing of electronic devices and semiconductors.
- Steelmaking: Graphite is used as a lubricant and in the production of refractory materials that withstand high temperatures in steelmaking.
- Lubricants: Its lubricating properties are utilized in various industrial applications to reduce friction and wear.
- Military use: Graphite is ideal for defense purposes for its unique ability to withstand high temperatures and can be found in aircraft, helicopters, ships, artillery and missles, to name a few.
Graphite’s critical role in the clean energy transition and modern technologies
Graphite is indispensable in the transition to clean energy and the advancement of modern technologies. Its role in lithium-ion batteries and fuel cells is particularly crucial as the world shifts towards renewable energy sources and electric transportation. The demand for graphite is expected to surge as these technologies become more widespread.
National security implications of foreign supply reliance
The U.S. Geological Survey lists graphite as a critical mineral due to its importance in defense systems and modern technologies. The reliance on foreign sources, particularly China, which dominates over 90 per cent of global graphite refining, poses significant national security risks.
A company well known to Stockhouse readers, Graphite One (TSXV:GPH) has welcomed this move, calling it the strongest signal yet of a ‘whole of government’ engagement to boost domestic mineral production. The expanded authorities of the Defense Production Act can support Graphite One’s initiatives, working to ensure a robust supply chain for advanced graphite materials.
“This new Critical Minerals Executive Order serves as the strongest signal yet that the U.S. Government has not only recognized the national security need for critical minerals including graphite, but that there will now be a ‘whole of government’ engagement to accelerate domestic development,” the company’s CEO, Anthony Huston explained in a news release. “The new authorities provided via the Defense Production Act, the EXIM Bank, and the FAST-41 transparency-in-permitting process – all of which have recognized the importance of Graphite One’s complete supply chain strategy – confirm that the company is well positioned for this new focus on bringing projects into production.”
Ensuring a stable and secure supply of graphite is essential for maintaining the integrity of defense systems and technological advancements.
Graphite One’s mission and recent developments
Graphite One is working to establish a fully integrated, U.S.-based supply chain for graphite. The company has welcomed the executive order by the federal government titled “Immediate Measures to Increase American Mineral Production” which aims to bolster domestic production of critical minerals.
The executive order tasks the Secretaries of Defense, Energy, and Interior with actions and initiatives requiring responses within 10, 15, 30, and 45 days, and waives related legal requirements under the “national emergency” provision of the Defense Production Act (DPA). Graphite One has already been the recipient of a DPA grant to accelerate the company’s feasibility study, expected to be released in April 2025.
Graphite One has also received a $325 million non-binding Letter of Interest from the EXIM Bank for the construction of the company’s Ohio-based anode manufacturing plant. Both DPA and EXIM are among the agencies that will have expanded critical mineral authorities under the new executive order.
Global supply chain vulnerabilities
The global supply chain for graphite is vulnerable due to the concentration of refining capabilities in China. This dominance poses risks to the stability and security of supply, highlighting the need for domestic production and processing capabilities.
Stay tuned for part two
In the next part of this series, we will delve into the role of graphite in national security and military applications.
Graphite One is at the forefront of addressing these challenges by establishing a secure, U.S.-based supply chain for graphite. This initiative is crucial for the clean energy transition, technological advancements, and national security.
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