Graphite One reaches feasibility ahead of schedule, eyes 2028 first production

Graphite One (TSXV: GPH) said on Wednesday that its US-based anode material supply project has reached the feasibility stage, setting it up for the permitting phase ahead of planned production in 2028.

The project is planned as an integrated operation to commercially produce lithium-ion battery anode materials and other graphite products for the US market, using primarily natural graphite mined from its large Graphite Creek deposit in Alaska, then processed at a proposed facility in Ohio.

“Our feasibility study represents a major milestone for G1 on our path to production and validates the efforts we’ve made with the Department of Defense’s DPA Title III support,” CEO Anthony Huston said, noting that the study was completed 15 months ahead of schedule following the recent US government funding.

“With President Trump’s critical mineral and Alaska executive orders, Graphite One is positioned to be at the leading edge of a domestic critical mineral renaissance that will power transformational applications from energy and transportation to AI infrastructure and national defense,” Huston said.

Graphite One’s stock rose 2.1% by noon ET in Toronto on the feasibility release, giving the company a market capitalization of C$139 million ($100 million).

Tripled production

The feasibility study used the recently updated mineral reserves at the company’s Alaska deposit, totalling 71.2 million tonnes grading 5.2% Cg (graphitic carbon) for 3.7 million tonnes of graphite material. The reserve count is more than three times higher than that used in the 2022 pre-feasibility study (PFS).

The measured and indicated resources also tripled from the PFS, now totalling 104.7 million tonnes at 4.6% Cg, containing nearly 4.8 million tonnes of graphite. The company also noted that the graphite resource came from drilling of just 12% of the 15.3 km long mineralized zone at Graphite Creek.

The Graphite Creek reserves, according to the feasibility, would support 20 years of mine production at 175,000 tonnes per year of graphite concentrates, versus the 53,000 tonnes previously estimated in the PFS, beginning in 2030. Before that, Graphite One expects to achieve commercial graphite production of 50,000 tonnes per year in 2028 by processing purchased graphite.

In terms of active anode material, its production would be 48,000 tonnes initially, rising to 169,000 tonnes a year by 2031 following the start-up of the Graphite Creek mine.

Based on this phased development strategy, the FS estimates a post-tax net present value of $5 billion with an internal rate of return of 27% and a payback period of 7.5 years. The NPV is roughly equal to the combined capital cost for the processing plant and the mine.

Graphite One said is now entering the permitting process for the project, anticipating that the secondary treatment plant in Ohio to produce anode materials would take three years to complete, and another four years for modular buildout to reach the 175,000 tpy capacity.