Graphite One Inc. offers the following comments on President Joe Biden’s announcement today that graphite and other critical battery materials are designated as “essential to national defense” under the Defense Production Act (DPA) of 1950.
Graphite and other battery minerals – lithium, manganese, cobalt and nickel – join rare earth materials the only U.S. Government-listed Critical Minerals eligible for the comprehensive support provided by the DPA. Unlike Presidential Executive Orders, designations under the DPA, first passed during the Korean War, carry the full force of U.S. federal law.
“With this new defense designation under U.S. law, graphite joins a select group of ‘super-critical minerals’ that are essential to commercial technology and national security applications,” said Anthony Huston, CEO of Graphite One. “This action by President Biden validates Graphite One’s strategy of creating a full supply chain for advanced graphite materials located in the United States.”
According to the Department of Defense, the (DPA) “provides the President a broad set of authorities to ensure the timely availability of essential domestic industrial resources to support national defense and homeland security requirements.”
According to the White House statement, President Biden
“…issue[d] a directive, authorizing the use of the Defense Production Act to secure American production of critical materials to bolster our clean energy economy by reducing our reliance on China and other countries for the minerals and materials that will power our clean energy future. Specifically, the DPA will be authorized to support the production and processing of minerals and materials used for large capacity batteries–such as lithium, nickel, cobalt, graphite, and manganese—and the Department of Defense will implement this authority using strong environmental, labor, community, and tribal consultation standards. The sectors supported by these large capacity batteries—transportation and the power sector—account for more than half of our nation’s carbon emissions. The President is also reviewing potential further uses of DPA – in addition to minerals and materials – to secure safer, cleaner, and more resilient energy for America.”
Earlier this month, U.S. Senators Lisa Murkowski (R-AK) and Joe Manchin (D-WV), former and current Chairs of the Senate Energy and Natural Resource Committee, sent a letter to President Biden urging him to make a DPA Title III designation to “invoke the Defense Production Act to accelerate domestic production of lithium-ion battery materials, in particular graphite, manganese, cobalt, nickel, and lithium.” Mr. Huston commented: “All of us at Graphite One want to thank Senator Murkowski, the Senate’s undisputed expert on critical minerals, and Chairman of the Senate ENR Committee, Joe Manchin who made such a compelling case for President Biden to take this step. Giving graphite and the battery materials the DPA Title III designation – as ‘essential to national defense’ – is a strong signal that the full force of the U.S. federal government will now be behind domestic development of these ‘super-critical minerals’. With the USGS recognizing Graphite One’s Alaska deposit just last month as being America’s largest known graphite deposit, and adding to that our plan to produce battery-ready anode material, Graphite One is ready to answer the call, and create a complete advanced graphite supply chain solution for the U.S.”
Dean of the House, the Honorable Don Young
“I also want to single out a real leader, a great patriot and friend who we mourn and miss: Congressman Don Young, Dean of the House,” continued Mr. Huston. “Congressman Young was a supporter of Graphite One from the first moment I had a chance to meet him, and he was an advocate of DPA Title III being used to drive domestic production of graphite and other critical minerals. We talked about the issue the last time we met. On a personal level, all of us at Graphite One want to express our deepest condolences to Mrs. Young and the Young family. When you were talking to him, it didn’t matter what huge issues of government were in play on Capitol Hill, Don Young had a way of making you feel like the conversation you were having with him was the most important thing he could be doing. He was a happy warrior – and Alaska and all of America were lucky to have him.”
With the United States currently 100 per cent import dependent for natural graphite, Graphite One is developing a complete U.S.-based, advanced graphite supply chain solution anchored by the Graphite Creek resource near Nome, Alaska. The Graphite One project plan includes an advanced graphite material and battery anode manufacturing plant expected to be sited in Washington State1 with the development of the Graphite Creek resource.
As announced on March 7th2, Graphite One Inc.’s Graphite Creek resource in Alaska has been cited as the largest known graphite deposit in the United States by the U.S. Geological Survey (USGS) in its updated U.S. Mineral Deposit Database (USMIN).
The USGS report confirms Alaska Governor Mike Dunleavy’s statement in support of Graphite One’s designation as a U.S. government high-priority infrastructure project, stating, “Graphite Creek is the largest deposit of graphite in the nation and would be a superior domestic supply of this critical mineral.
GRAPHITE ONE INC. continues to develop its Graphite One Project (the “Project”), whereby the Company could potentially 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 high grade anode materials primarily for the lithium‐ion electric vehicle battery market. As set forth in the Company’s Preliminary Economic Assessment, potential graphite mineralization mined from the Company’s Graphite Creek Property, is expected to be processed into concentrate at a graphite processing plant. The proposed processing plant would be located on the Graphite Creek Property situated on the Seward Peninsula about 60 kilometers north of Nome, Alaska. Graphite anodes 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 once a feasibility study is completed.
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.