Graphite One welcomes Pentagon report and reports defined AAM path toward commercial production – Richard Mills

2026.06.18

Graphite One (TSXV:GPH, OTCQX:GPHOF) is welcoming the release of a new Pentagon report recommending targeted production and investment tax credits, a co-investment fund, and a framework for licensing non-core manufacturing technologies from allied nations’ suppliers for equipment used to manufacture advanced batteries.

The company says the report, developed with the interagency Federal Consortium for Advanced Batteries as reported by Politico, represents a significant policy signal supporting the build-out of domestic capabilities in a sector currently dominated by Asian suppliers (92% market share). It warns that reliance on foreign-produced battery-making equipment — including mixing machines, coating and drying systems, electrode stacking machines and testing devices — creates critical vulnerabilities for US military vehicles, drones, grid storage and AI data center applications.

“Graphite One welcomes the Pentagon’s pragmatic recommendations for targeted tax credits, co-investment mechanisms, and establishing a framework for licensing established non-core manufacturing technologies to rebuild domestic battery equipment manufacturing,” Graphite One’s President and CEO Anthony Huston stated in the June 4 news release.

“The report correctly identifies that secure anode active materials (“AAM”) are the indispensable foundation of any resilient U.S. battery supply chain — exactly the role Graphite One is fulfilling by developing America’s largest graphite deposit in Alaska alongside large-scale AAM production in Ohio. Policies that reward total cost of ownership, create demand signals for U.S.-made equipment, and enable smart partnerships with allies will accelerate the onshoring of critical processing capacity, create thousands of American jobs, and end our dangerous 100% reliance on foreign adversaries for graphite.”

The Pentagon report notes that it is currently “impossible to assemble a complete battery production line domestically without using some level of foreign-produced equipment” and recommends making federal grants and loans for battery production conditional on requirements that facilities use a percentage of US-manufactured equipment, creating a “guaranteed demand signal” for domestic suppliers. It also encourages licensing agreements and joint ventures with allied suppliers for established technologies, with government support to vet partners and protect US interests.

These recommendations align closely with Graphite One’s ongoing development of its Ohio AAM facility, where specialized high-temperature graphitization, purification and processing equipment will be required.

The company has received strong bipartisan support from the US government, including EXIM Bank non-binding Letters of Interest exceeding USD$2 billion, prior Department of Defense Title III and Defense Logistics Agency funding totaling $42 million, and inclusion on the FAST-41 permitting dashboard. “The Trump administration’s extension of tariff exemptions for imported battery-making equipment until at least November 2026 recognizes the current reality while the domestic industry scales,” Huston added.

The Pentagon report was accompanied the following week by congressional passage of legislation that aims to address American’s access to energy and critical minerals.

Democrats and Republicans in the House of Representatives joined forces in approving the DOMINANCE Act, which stands for Developing Overseas Mineral Investments and New Allied Networks for Critical Energies. 

The bill aims to strengthen US energy security, reduce reliance on China for critical minerals, and build more resilient supply chains with trusted allies and partners.

Demand for critical energy transition minerals is projected to soar, with lithium requirements increasing 353% by 2040 and graphite needs jumping by 131%.

See the post below for a graph by UN Trade and Development (UNCTAD) that shows the projected growth in demand between 2024 and 2040 for lithium, graphite, nickel, rare earths, cobalt and copper.

Meanwhile, Graphite One has chosen a site in Ohio for its Active Anode Materials (AAM) facility — the second link in its US-based graphite materials supply chain strategy.

Graphite One secures Ohio site for Active Anode Materials facility — Richard Mills

The first link is Graphite One’s Graphite Creek mine in Alaska, which completed a bankable feasibility study in Q2 2025, mostly funded by a $37.5 million grant from the Department of Defense.

The plan also includes a recycling facility to reclaim graphite and other battery materials, to be co-located at the Ohio site, which is the third link in Graphite One’s circular economy strategy.

Graphite One aims to become the first vertically integrated producer to serve the US electric vehicle battery market and energy storage system markets. Its supply chain strategy involves mining, manufacturing and recycling, all done domestically.

The company announced on May 19 that it has secured a site in Conneaut, Ashtabula County, Ohio, through a license of occupation agreement with Bessemer and Lake Erie Railroad Company, a subsidiary of Canadian National Railway (CN).

Defined path toward commercial production

Graphite One is advancing development plans for an Ohio finishing and blending facility, which is one of the three processing facilities that together comprise the AAM facility with the targeted milestones:

• Construction completion in Q4 2027
• Initial production capacity of 10,000 tonnes per year (Phase 1)

Phase 1 production is expected to include:

• 4,000 tonnes of energy storage material
• 3,000 tonnes of fast-charging material
• 3,000 tonnes of high-energy-density material

These materials are intended for use in lithium-ion battery applications supporting electric vehicles, grid-scale energy storage and emerging data center infrastructure demand.

“We now have a defined path from site control through development to production and customer engagement,” said CEO Anthony Huston. “Our objective is to establish a vertically integrated, U.S.-based supply chain capable of supporting long-term North American battery demand.”

Phase 2 expansion planning underway

In parallel with Phase 1 production, the company is evaluating a second-phase expansion that would target:

• Construction completion in Q3 2028
• Graphitization capacity of 25,000 tonnes per year

The expansion would further position Graphite One as a potential domestic supplier of Active Anode Materials at a time when North American supply chains continue to seek localized sources of critical battery inputs.

Customer qualification and offtake discussions progressing

Graphite One has delivered commercial-grade anode material samples, including quantities of up to 20 kilograms, to:

• Three major electric vehicle manufacturers
• Three leading battery companies

All counterparties are currently conducting specification testing.

In parallel, the company has entered into discussions regarding potential binding offtake agreements with select participants involved in the sample evaluation process.

“We are encouraged by the level of engagement taking place with prospective customers,” added Huston. “The ongoing evaluation process and commercial discussions represent important steps toward establishing long-term customer relationships.”

Positioned within a strategic North American supply chain

Graphite One’s development strategy links its Graphite Creek resource in Alaska — identified by the US Geological Survey as the largest graphite deposit in the United States and among the largest globally — with downstream processing capabilities in Ohio.

The company believes this vertically integrated model aligns with growing North American efforts to localize critical mineral and battery material supply chains.

“As governments and industry continue prioritizing domestic supply chain development, we believe Graphite One is well positioned to participate in this structural market shift,” Huston said.

Construction and development activities for the Ohio facility remain subject to financing, permitting, power agreements, equipment procurement, regulatory approvals, and other customary development conditions.

Graphite One’s domestic supply chain strategy

The United States is currently 100% import-dependent for natural graphite. Graphite One is developing a fully integrated US-based supply chain anchored by the Graphite Creek deposit. The strategy includes:

• Mining at Graphite Creek
• Transportation via the Port of Nome
• Processing into advanced graphite and anode materials in Ohio
• Potential co-located recycling facility to recover graphite and other battery materials

This integrated approach positions Graphite One to become a cornerstone supplier in a domestic, circular battery materials economy.

In February Graphite One closed a public offering involving the sale of 20,002,000 units for aggregate gross proceeds of CAD$35 million.

The company intends to use the net proceeds of the offering for AAM plant-related expenditures including design and engineering, permitting and equipment purchases.

Graphite one raising CAD$35M for Active Anode Materials Plant — Richard Mills

Graphite One Inc.
TSXV:GPH, OTCQX:GPHOF
2026.06.17 Share Price: Cdn$1.08
Shares Outstanding: 208.9m
Market Cap: Cdn$225.6m
GPH website

Richard (Rick) Mills
aheadoftheherd.com

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Richard owns shares of Graphite One Inc. (TSXV:GPH). GPH is a paid advertiser on his site aheadoftheherd.com This article is issued on behalf of GPH.