Graphite One eyes U.S. Export-Import Bank support, shares up
Graphite One Resources Inc. (TSXV: GPH, GPHOF-OTCQX) said Tuesday the Export-Import Bank of the United States (EXIM) has extended a non-binding latter of interest to the company for up to US$570 million in financing. The funds would be used to advance development at G1’s Graphite Creek mine development in Alaska.
Combined with EXIM’s US$325 million letter of intent announced in October, 2024, for the company’s planned advanced graphite materials facility in Ohio, the company said EXIM indications of support for Graphite One’s U.S. supply chain strategy now stand at US$895 million.
In its latest press release, Graphite One said the LOI states: “Based on the preliminary information submitted, EXIM would be able to consider financing up to US$570 million of the U.S. export contract. Please note that based on the OECD Arrangement for Export Credits and EXIM Bank guidelines, this transaction is eligible for a maximum repayment term of 10 years. We trust that this Letter of Interest, coupled with the quality of U.S. products and services, will make a compelling case for U.S. procurement.”
On Tuesday, Graphite One shares were active on the news, rising 6.85% or $0.05 to 78 cents. The shares trade in a 52-week range of $1.14 and 64 cents.
Graphite One aims to become a vertically integrated American supplier, capable of mining graphite from its Graphite Creek Property. The Graphite One project plan includes an advanced graphite material and battery anode manufacturing plant located in Warren, Ohio. The plan also includes a recycling facility to be located in Ohio.
Envisioned as a vertically-integrated enterprise to mine, process and manufacture high-grade Coated Spherical Graphite (CSG), the Graphite One project would increase the North American supply of high purity CSG that meets or exceeds current requirements for electric vehicle battery anodes, and other critical applications at a time when demand for graphite is skyrocketing, the company has said.
“EXIM’s extension of its LOI to our company validates Graphite One’s strategy to develop a 100% U.S.-based advanced graphite minerals supply chain,” said Graphite One President and CEO Anthony Huston. “The announcement follows the recent acceptance of our Graphite Creek project as a ΓÇÿcovered project’ under the Federal FAST-41 Permitting Dashboard and, along with G1’s two Department of Defense grants under the Defense Production Act and from the Defense Logistics Agency, underscores the U.S. Government’s keen understanding of the urgency to end the United States’ 100% dependence on foreign sources of graphite supply.”
“Against a backdrop of China’s ongoing dominance over global graphite production, the EXIM LOI further indicates that this transaction may be eligible for special consideration under Section 402 of EXIM’s 2019 reauthorization, which directs EXIM to take steps to mitigate the competitive impact of export support provided by the People’s Republic of China and other covered countries for opportunities such as this one and/or to advance the comparative leadership of the United States in Transformational Export Areas,” Graphite One said..
GI expects to submit a formal application to EXIM under both LOIs in 2026.
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