The Defense Department on Monday said it has awarded Graphite One, Inc. (G1) a $37.5 million contract to help secure a U.S.-based source of graphite, which is used for production of large-capacity batteries and fuel cells and is one of 19 critical minerals identified by the U.S. Geological Survey as playing a key role in the nation’s national security, economy, and renewable energy development.
The award was made under the Defense Production Act using funds from the Inflation Reduction Act. G1 is based in Vancouver and the award was to the company’s subsidiary in Alaska.
G1 said it will use the funds under the DoD-Graphite One (Alaska) Technology Investment Agreement to do 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.”
DoD said the new funding will fast-track G1’s study by a year.
“This investment to increase domestic capabilities for graphite exemplifies [DoD] Industrial Base Policy’s commitment to building a resilient industrial base to meet current and future national defense requirements,” Laura Taylor-Kale, assistant secretary of defense for Industrial Base Policy, said in a statement. “The agreement with Graphite One (Alaska) advances the Defense Department’s strategy for minerals and materials related to large capacity batteries.”
G1 plans to develop a full lifecycle graphite capability, from mining through recycling.
Graphite is the most widely used material in lithium batteries although synthetic graphite, which the U.S. is one of the leading suppliers of, may eventually substitute for natural graphite in batteries, according to the Biden administration’s June 2021 review on Building Resilient Supply Chains, Revitalizing American Manufacturing, And Fostering Broad-Based Growth.”
Through 2019, China was the leading source of graphite, accounting for 68 percent of global production, according to the White House review, which cautioned that China could restrict exports over trade tensions or domestic priorities.
Sen. Lisa Murkowski (R-Alaska), said July 11 on the Senate floor that G1 hosts “North America’s largest graphite deposit,” which is “massive” compared to other deposits worldwide. Holding up a cell phone, which includes graphite, she highlighted that there is no domestic graphite content in the device.