Graphite Company Advances Major Alaska Project

Graphite One Inc. (GPH:TSX.V; GPHOF:OTCQX) to raise CA$18M to advance Americas largest graphite deposit as tariffs squeeze Chinese supply. Read more about the companys next move.

Graphite One Inc. (GPH:TSX.V; GPHOF:OTCQX) has entered into an agreement with a syndicate of agents led by BMO Capital Markets to raise up to CA$18 million through a private placement. The offering, announced on July 23, consists of units priced at CA$0.90 each, with each unit comprising one common share and one-half of a common share purchase warrant. Each whole warrant grants the holder the right to acquire an additional share at CA$1.25 for a period of 12 months following closing.

The company has also granted the syndicate an option to purchase up to an additional 15% of the offering, exercisable up to 48 hours before the expected closing date of August 8, 2025. The net proceeds are earmarked for environmental studies and permitting activities at the Graphite Creek property in Alaska, a milestone payment related to the company's technology licensing agreement with Chenyu, and general working capital.

The offering is being conducted under the listed issuer financing exemption in National Instrument 45-106 - Prospectus Exemptions, as amended by the Canadian Securities Administrators' Coordinated Blanket Order 45-935. As such, the securities issued will not be subject to a statutory hold period under Canadian securities laws. An offering document is available at www.sedarplus.ca and on the company's website.

The securities have not been registered under the U.S. Securities Act of 1933 and may not be sold in the United States without appropriate registration or exemption.

Graphite Sector Realigns Under U.S. Trade Policy and Global Supply Pressures

Graphite has emerged as a critical focus in the global battery materials supply chain, as recent U.S. policy decisions target China's dominant position in graphite exports. On July 22, OilPrice.com reported that the U.S. Commerce Department imposed preliminary anti-dumping tariffs of up to 160% on anode-grade graphite imports from China, with some producers facing duties exceeding 700%. The decision followed allegations that Chinese firms were selling graphite below fair market value, threatening U.S. producers and supply chain stability.

The tariffs are expected to raise battery production costs and have already shifted investor attention to North American and Asia-Pacific graphite suppliers. A separate article from AI Invest News on July 18 noted that shares of companies such as Westwater Resources, Syrah Resources, and Nouveau Monde Graphite rose significantly following the announcement, reflecting growing expectations for reshoring and domestic capacity development. The International Energy Agency has projected that graphite will remain the dominant anode material in lithium-ion batteries for the next five years, underscoring its long-term strategic role.

A July 2025 study published in Science Direct further emphasized the importance of graphite in global value chain restructuring, identifying graphite as a key driver in the realignment of international trade flows. According to the study, graphite trade has accounted for approximately 20% of value-added contributions to global value chains between 2000 and 2022. The authors concluded that the supply of critical materials like graphite is no longer determined solely by comparative advantage but increasingly shaped by geopolitical considerations and trade policy.

As demand for clean energy and electric vehicles accelerates, graphite's role as a battery input and flame-retardant additive continues to expand. MarketsandMarkets projected on July 23 that the expandable graphite market alone could grow from US$0.29 billion in 2025 to US$0.42 billion by 2030, driven by use in energy storage, military applications, electronics, and construction.

These developments point to a shifting landscape in which graphite producers with domestic resources and integrated manufacturing plans may benefit from regulatory and market realignment. With China controlling more than 65% of U.S. graphite imports as of 2023, the urgency to develop resilient supply chains remains a central theme in U.S. industrial strategy.

Pathways for Development

According to the company's Q2 2025 investor presentation, Graphite One is working to establish a vertically integrated supply chain for natural and synthetic anode active materials (AAM) for lithium-ion batteries and energy storage systems. The Graphite Creek property, identified by the U.S. Geological Survey as the largest known graphite deposit in the United States, is central to this plan.

Graphite One's strategy includes constructing a natural graphite processing facility in Alaska and building an AAM manufacturing facility in Ohio. The feasibility study, completed in April 2025, outlines a phased development model with an initial capital expenditure of US$607 million for the first 25,000 tonne-per-year production module. The company has secured a non-binding supply agreement with Lucid for 5,000 tonnes per year for both synthetic graphite AAM and natural graphite AAM production and was awarded a US$37.5 million grant from the U.S. Department of Defense to accelerate completion of a feasibility study on the Graphite Creek project 15 months ahead of original schedule.

To further support its plans, Graphite One has signed technology licensing and consulting agreements with Chenyu, granting exclusive rights to manufacturing technologies across North America. Leveraging proven technology to manufacture artificial graphite active anode material (AAM) products accelerates the time to market for the AAM products, reducing startup and development risks associated with new manufacturing processes and shortens the time required to qualify the AAM products with customers.

The company also reported a non-binding letter of interest for up to US$325 million in financing from the Export-Import Bank of the United States to support construction of the Ohio facility. Additionally, Graphite One is received a strategic investment and regional support from Bering Straits Native Corporation, a regional Native Corporation for the Bering Straits region where the Graphite Creek mine is located.

Analysts Highlight Strategic Value of Graphite One

On May 7, Rick Mills of Ahead of the Herd and Bob Moriarty of 321Gold discussed Graphite One Inc. in an investment interview, highlighting the company's unique position within the U.S. graphite supply chain. Mills noted that "Graphite One offers comprehensive solutions mining, manufacturing, and recycling capabilities domestically." He stated that the company's high-grade graphite deposit in Alaska is one of the largest globally and could "supply American requirements for generations, with surplus for strategic reserves."

Moriarty echoed these views, calling graphite "essential for modern economies" and emphasizing that Graphite One is "establishing domestic capabilities in a market currently dominated by Chinese imports."

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Graphite One Inc. (GPH:TSX.V;GPHOF:OTCQX)

Mills added that the company's manufacturing facility in Ohio, expected to process 25,000 tonnes of synthetic graphite annually within 2.5 years, could generate early annual revenues of approximately US$200 million. He also noted the company's plans to expand with six additional production modules. According to Mills, the company's feasibility studies indicate a viable path to production by 2030 and "demonstrate manufacturing profitability in Ohio."

Both analysts emphasized the strategic value of securing a U.S.-based graphite supply. Moriarty concluded that Graphite One is "ideally positioned" due to graphite's broad application base and designation as a critical mineral. Mills cited the company's CA$0.95 share price at the time as offering notable potential given the U.S. government's growing emphasis on domestic critical mineral development.

Ownership and Share Structure

According to Refinitiv, 2.4% of Graphite One is owned by management and insiders, while 28% is held by the strategic entity Taiga Mining Co Inc. Institutions hold 0.30%. The rest is retail.

Graphite One has 146.269 million outstanding shares, 101.43 million free float shares, and a market cap of CA$92.88 million. Its 52-week range is CA$0.43 - 0.86.

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