Graphex Group Limited and its U.S. subsidiary, Graphex Technologies in Royal Oak, a downstream processor of specialized natural graphite used in electric vehicle (EV) lithium-ion (Li-ion) batteries, announced it has entered into a non-binding letter of intent (LOI) with Northern Graphite Corp.
The intent of the LOI is to aggregate Northern’s raw material supply capabilities with Graphex’s proven downstream processing expertise to solve an industry wide supply-demand gap by delivering an end-to-end supply of graphite from mine to battery while simultaneously on-shoring a critical mineral supply chain to North America.
“By combining the experience and expertise of Graphex in downstream processing and Northern in upstream raw material production, the collaboration will improve the anode supply picture for the industry significantly, beginning in North America,” says John DeMaio, CEO of Graphex Technologies.
“From the time we decided to expand into North America, we have been committed to providing foundational support to the electrification effort which means contributing to solving industry-wide challenges — this effort with Northern is exactly that.”
Pursuant to the LOI, Graphex and Northern intend to negotiate the terms of a joint venture (JV), including management and ownership percentages, to jointly produce coated spherical graphite anode material for the EV/battery market.
Graphex will license and/or contribute its technology and expertise to the JV and Northern will provide security of raw mineral supply (graphite concentrate). It is contemplated that Graphex will provide all the technology, plans, and expertise for building and operating the plant or plants.
Graphex already has secured and is developing a site in Warren that is being designed to produce 15,000 tons per annum (TPA) of battery anode material, and Northern is evaluating sites in Canada that could accommodate production of up to 200,000 TPA of anode material.
Northern shall remain entitled to enter into supply agreements with third parties for production not committed to the JV and to participate in the construction of other graphite processing plants provided that Northern may not directly or indirectly use, exploit, or disclose any of Graphex’s technology in connection with such plants.
“Collaborating with a company that has established technology and expertise will enable Northern to leapfrog the product development stage and substantially shorten our time to market. We look forward to working with Graphex to establish a secure, domestic supply chain for battery anode material in both North America and Europe,” says Hugues Jacquemin, CEO of Northern Graphite.
Northern owns the only producing graphite mine in North America with a current output of 15,000 TPA of graphite mine concentrate. It also has three development projects with the resources to produce over 100,000 TPA by 2025 and 300,000 TPA by 2027.
Graphex has a long history of processing mine concentrate and produces 10,000 TPA of high yield, high quality battery anode material. The collaboration with Northern would allow Graphex to accelerate the expansion of its experienced mid-stream processing capabilities into North America and Europe.