With the Biden administration declaring graphite a Defense Production Act critical material and tax credits available for domestic graphite production, the timing is perfect to create a U.S.-based graphite supply chain.

And that’s exactly what high-tech materials company Graphite One (GPH.V; GPHOF.OTC) is doing — by advancing not only a world-class graphite resource in Alaska but also a major, U.S.-based production facility.

Dear Fellow Investor,

Even more than it does the lithium market, China dominates in graphite.

The vast majority of the world’s supply of this critical battery material is mined and processed in China.

In a world where the United States is determined both to lessen its supply chain dependence on China and to build its supply chains of materials critical to the manufacture of lithium-ion batteries, there’s a desperate need for companies that can generate a domestic supply of graphite in the United States.

That’s where Graphite One (GPH.V; GPHOF.OTC) comes in.

This Canadian company owns what the U.S. Geological Survey has labeled the largest natural graphite resource in the United States — and “among the largest in the world.”

Graphite One also has a plan to turn that resource, located north of Nome, Alaska, into a graphite concentrate on site and then ship that concentrate by barge to a site, likely in Washington state, for purification into battery-ready anode material.

At a time when graphite demand is expected to triple by 2030...and when the U.S. has zero domestic production of graphite...Graphite One’s game plan promises to put it in the driver’s seat.

And that position will likely demand a very significant, and profitable, market re-rating.

The Largest Graphite Resource In The U.S.

As mentioned, as stated by the USGS, Graphite One’s Graphite Creek project in Alaska boasts the largest resource in the U.S. and one of the largest in the world.

The current resource stands at 37.6 million tonnes of 5.14% measured and indicated graphite and 243.7 million tonnes of 5.07% inferred graphite.

That’s quite remarkable, but it gets better.

You see, this resource is based on just 26% of the surface area of the graphite anomaly at Graphite Creek. Indeed, the proven and probable reserve in the prefeasibility study for Graphite Creek covers just 7% of that anomaly.

A Tech Materials Company

Again, Graphite One’s goal is not to just be a miner of graphite. They plan to be a vertically integrated producer of high-grade graphite for the lithium-ion EV battery market and energy storage systems.

According to the prefeasibility study released for the project, the mine would be a simple truck-and-shovel operation that would mine four million tonnes of material each year.

Of that tonnage, 1 million tonnes of 7% graphite would be delivered to an adjacent processing plant to convert it into 60,000 tonnes of a 95% graphite concentrate. It would then be delivered to Nome to be barged to the Lower 48.

The product manufacturing plant, which is slated to be in Washington State to take advantage of its abundance of clean hydro power, would then pelletize and purify the material to 99.95%, before the majority would be air-milled, turned into spheroid-shaped particles, coated and graphitized.

The plant envisioned in the PFS would deliver 41,850 tonnes of battery grade Coated Spherical Graphite for EV and energy storage batteries per year. The feasibility study — underway now — is looking to significantly increase annual production to meet rising demand.

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A C$1.36 Billion Project

The prefeasibility study on this self-contained, U.S.-based supply chain for graphite projects a post-tax NPV, discounted at 8%, of C$1.36 billion and a post-tax internal rate of return of 22.8%.

And that’s just based on mining one square kilometer of the 16-square-kilometer project!

As Graphite One moves Graphite Creek toward feasibility, some of that projected NPV should begin to get baked into its valuation, which currently stands at just under C$200 million.

Simply put, with graphite in increasingly high demand and a plan to turn its large graphite resource into EV battery anode material, Graphite One stands as the premier U.S.-based graphite story.

So Much Momentum

That status as a domestic graphite source puts the wind at Graphite One’s back.

Consider that…

• The Biden Administration last year added graphite to its list of Defense Production Act critical minerals, “essential to the national defense.”

• Congress passed and Biden signed the Inflation Reduction Act, which doesn’t do much to reduce inflation, but does put a series of incentives in place to encourage domestic production of materials critical to the administration’s climate change goals.

• The World Bank Group projects that demand for graphite will grow by 494% by 2050.

It’s a scenario where what Graphite One has to offer — namely a full-fledged, U.S-based graphite supply chain — is going to be extremely valuable.

As Graphite One de-risks its project in 2023, its market value should rise toward the C$1.36 billion post-tax NPV projected in its prefeasibility study.

Bottom line: If you’re looking for a smart-money way to play the electrification trend in the global economy, you’ll want to look into Graphite One sooner rather than later.

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To Learn More about Graphite One Inc.