US raises Graphite One loan to $2.1B

[Ben Graham]

The US Export-Import Bank (EXIM) has increased potential funding to over $2 billion for Graphite One’s (TSXV: GPH) Alaska-to-Ohio supply chain.

The bank on Thursday issued non-binding letters of interest tied to the Graphite Creek project near Nome for $670 million, up from $570 million. The prospective loan for an anode materials plant in northeastern Ohio jumped to $1.4 billion, up from $325 million, with a 15-year loan repayment period. EXIM indicated it could cover about 70% of total capital spending through first production, with the balance to come from commercial lenders and other US agencies.

“There’s no reason the US should be dependent on foreign-sourced graphite when Graphite Creek can anchor a 100% US supply chain,” CEO Anthony Huston said in a news release.

The move comes as the US remains import-dependent for natural graphite and China dominates supply. The Trump administration is ratcheting up government ownership in mining companies in a bid to secure domestic supplies of critical minerals.

Graphite Creek is described by the US Geological Survey as the largest graphite deposit in the country. The Ohio plant would scale in 25,000-tonne steps to reach output of 100,000 tonnes a year of anode material.

Graphite One expects to file formal applications for the grants next year.

Company shares rose 3.5% per share to C$1.79 Thursday afternoon in Toronto. They’ve gained nearly 170% this year for a market capitalization of C$315 million.

Washington’s intent

The loan ceiling was increased after a Washington, DC meeting between EXIM chairman Jovanovic and Graphite One CEO Anthony Huston. The letters were issued under the bank’s Make More in America and the China and Transformational Exports programs.

The company says it’s in talks with top-five North American investment banks to arrange the remaining 30% of capital and is coordinating with several US departments on a broader financing package.

The project

Graphite One plans a staged build-out of an initial 25,000-tonne module at the Ohio anode active material plant and a 20-year mine life at Graphite Creek. The company has leased industrial property in Niles, Ohio, with an option to buy, and is advancing engineering for the anode plant.

Graphite Creek is post-feasibility and moving through FAST-41 permitting, with engineering advancing on its Ohio anode plant. The company targets initial anode output by mid-2027, first production from the Graphite Creek mine in 2030 and a staged ramp to 100,000 tonnes per year of anode materials by end-2032.

Graphite One previously reported $37.5 million in US Department of Defense funding, a listing on the federal FAST-41 permitting dashboard and non-binding supply agreements with Lucid Group (Nasdaq: LCID) for synthetic and natural anode materials.