Graphite One Enters Into Agreements Providing Exclusive Access to Industry Leading Anode Manufacturing Technology Execution of the Graphite One-Chenyu Agreements marks key step in providing the knowledge base for U.S. Anode Active Material ("AAM")
Graphite One Enters Into Agreements Providing Exclusive Access to
Industry Leading Anode Manufacturing Technology
Execution of the Graphite One-Chenyu Agreements marks key step in providing the knowledge base for U.S. Anode Active Material ("AAM")
manufacturing at G1's planned Ohio AAM facility
Leading AAM manufacturer grants exclusive license to the North American market
Graphite One announces grant of long-term incentive awards
VANCOUVER, BC
,
Oct. 21, 2024
/CNW/ -
Graphite One Inc.
(TSXV: GPH) (OTCQX: GPHOF)
("Graphite One", "G1" or the "Company"),
planning a
complete domestic U.S. supply chain for advanced graphite materials, announced today that Graphite One Products Inc., an indirect, wholly owned subsidiary of
G1 incorporated in
Delaware
, has signed a technology license agreement and a consulting agreement (collectively, the "Agreements") with Hunan Chenyu Fuji
New Energy Technology Co. Ltd. ("Chenyu"), an Anode Active Material ("AAM") manufacturer headquartered in
Changsha
City,
China
that currently supplies
qualified AAM to lithium-ion battery producers. The Agreements are an important milestone for G1 in bringing leading technology in AAM manufacturing to the U.S.
domestic supply chain for battery materials.
"
The United States
has zero commercialization of synthetic anode battery materials. The execution of these Agreements represents a critical step in creating
domestic supply for the lithium-ion battery materials," said Anthony Huston, CEO of Graphite One. "Supplying proven products to the North American battery
material supply chain will give G1 a competitive edge by allowing rapid entry into a market where technology is developing quickly."
The Agreements give G1 access to critical AAM technology from an experienced AAM supplier to major battery manufacturers on a commercial basis. AAM
technology is evolving rapidly as battery makers require fast charging, high density, and long-life battery specifications and G1 expects to keep pace with this
advancement.
The Agreements are strictly fee-for-services arrangements, and provide no direct or indirect equity in G1, no representation in the management or Boards of
Directors of G1 or any of its affiliates, and no direct or indirect rights to control the projects of G1 or any of its affiliates. It is noteworthy that technical license
agreements have been used for EV battery development by such companies as General Motors
1
(NYSE: GM) and Ford.
2
(NYSE: F).
________________________
1
https://www.bnnbloomberg.ca/investing/commodities/2024/09/12/gm-in-talks-to-buy-chinese-batteries-made-in-us-by-japans-tdk/
2
https://media.ford.com/content/fordmedia/fna/us/en/news/2023/02/13/ford-taps-michigan-for-new-lfp-battery-plant--new-battery-chemis.html
Subject to financing, G1 is planning to construct a commercial AAM facility using this technology at its
Warren, Ohio
property.
The Chenyu Agreements include:
1
.
Technology License Agreement
: Chenyu grants an exclusive license to certain AAM technologies in return for the payment of royalties applied to net revenues
received by G1 from the sale in each calendar quarter of AAM products manufactured using the technology;
2
.
Consulting Agreement
: Chenyu will provide:
a. Advice and guidance in designing, constructing, commissioning and operating the Ohio AAM plant in return for the payment by G1 of milestone fees
which track events progressing from the commencement of work on the plant by hiring an engineering, procurement and construction management firm
through ultimately to G1 successfully qualifying licensed products manufactured at the plant with a U.S. customer.
b. Consulting and advisory services as requested based on individual statements of work for agreed upon fees.
3
.
Other contractual provisions:
a. Right of First Negotiation for Next Generation Products: Chenyu agrees to offer G1 advanced, next-generation AAM technology prior to offering it to
other AAM manufacturers in
North America
; and
b. Right of First Negotiation for Additional Markets: Chenyu agrees to offer G1 the right to license Chenyu's AAM technology in
Europe
, the
United
Kingdom
and the
Kingdom of Saudi Arabia
before offering it to other AAM manufacturers.
Chenyu reserves the right to terminate both the Technology License Agreement and the Consulting Agreement for convenience if G1 has not hired an engineering,
procurement and construction management firm to assist with the design of the Ohio AAM plant by
July 31, 2025
. Termination of either of the Agreements
by Chenyu if G1 does not meet these conditions automatically terminates the other agreement.
In anticipation of its manufacturing developments in
Ohio
, G1 has completed an internal corporate reorganization, adding indirect, wholly owned U.S. subsidiaries,
including Graphite One Products Inc.
Copies of the Agreements will be filed under G1's SEDAR+ profile at
https://www.sedarplus.ca
.
About Chenyu
Founded in 2019, Chenyu is a high-tech company specializing in R&D, production, sales and professional services of lithium-ion battery materials including artificial
graphite anode, natural graphite anode, silicon carbon anode materials and waste battery recycling. The company currently has five production facilities and an
R&D center.
Dr. Zhou Xiangyang, a professor and doctoral supervisor at Central
South University
in
Changsha, China
will guide Chenyu's experienced project team providing
work under the Agreements. He is a member of several professional organizations in
the United States
and a recognized expert in battery materials' science.
Dr. Xiangyang has published more than 100 professional papers and obtained more than 100 patents. He has successfully developed products for global battery
companies and will advise Graphite One's commercial program.
Grant of Long-Term Incentive Awards
The Company announces that the board of directors has approved a grant effective
October 21, 2024
of the remaining 1,215,778 performances share units
("
PSUs
") to senior management pursuant to the terms of the Company's Omnibus Plan. The grant of these PSUs was previously disclosed in the Company's
March 20, 2024
press release
Link
. It was subject to receipt of the approval of shareholders to increase the number of common shares available under the
Omnibus Plan and the approval from the TSX Venture Exchange, both approvals have now been received.
Each PSU will convert into one common share of the Company on the
March 19, 2027
vest date subject to the achievement of certain corporate share price
performance criteria. Further details regarding the Omnibus Plan are set out in the management information circular of the Company dated
May 15, 2024
, which is
available on the Company's website at
www.graphiteoneinc.com
or on SEDAR+ at
www.sedarplus.ca
.
Following the above noted grant of PSUs, the Company has 138,969,294 common shares issued and outstanding, 6,833,151 restricted share units and 3,200,436
performance share units issued and outstanding under the Company's Omnibus Plan.
Graphite One's Domestic Supply Chain Strategy
With
the United States
almost 100 percent import dependent for anode active materials, Graphite One is developing a complete U.S.-based, advanced graphite
supply chain solution anchored by the Graphite Creek deposit, recognized by the US Geological Survey as the largest graphite deposit in the U.S. "and among the
largest in the world." The Graphite One Project plan includes an advanced graphite material and battery anode material manufacturing plant located in
Warren,
Ohio
. The plan also includes a recycling facility to reclaim graphite and the other battery materials, to be co-located at the
Ohio
site, the third link in Graphite
One's circular economy strategy. The building of these facilities remains subject to financing.
About Graphite One Inc.
GRAPHITE ONE INC. continues to develop its Graphite One Project (the "
Project
") to become an American producer of high-grade anode materials that is
integrated with a domestic graphite resource. The Project is proposed as a vertically integrated enterprise to mine, process and manufacture anode active
materials primarily for the lithium
ion electric vehicle battery market. As set forth in the Company's 2022 Pre-Feasibility Study, graphite mineralization mined from
the Company's Graphite Creek Property, situated on the
Seward Peninsula
about 60 kilometers north of
Nome, Alaska
, would be processed into concentrate at
an adjacent processing plant. Natural and artificial graphite anode active materials and other value
added graphite products would be manufactured from the
concentrate and other materials at Graphite One's proposed advanced graphite materials manufacturing facility expected to be located in
Warren, Ohio
. The
Company intends to make a production decision on the Project upon completion of its Feasibility Study, expected in Q1 2025.
On Behalf of the Board of Directors
"Anthony Huston" (signed)
For more information on Graphite One Inc., please visit the Company's website,
www.GraphiteOneInc.com
.
On X (formerly Twitter) @GraphiteOne
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
All statements in this release, other than statements of historical facts, including those related to the timing and completion of the anticipated Feasibility Study,
future production, establishment of a processing plant and a graphite manufacturing plant, establishment of a battery materials recycling facility, and events or
developments that the Company intends, expects, plans, or proposes are forward-looking statements. Generally, forward
looking information can be identified
by the use of forward
looking terminology such as "proposes", "expects", "is expected", "scheduled", "estimates", "projects", "plans", "is planning", "intends",
"assumes", "believes", "indicates", "to be" or variations of such words and phrases that state that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved". The Company cautions that there is no certainty that tests of the Company's material will be successful or
that such tests will result in the development of successful products. Although the Company believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ
materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements
include market prices, exploitation and exploration successes, continuity of mineralization, uncertainties related to the ability to obtain necessary permits,
licenses and title and delays due to third party opposition, changes in government policies regarding mining and natural resource exploration and exploitation,
and continued availability of capital and financing, and general economic, market or business conditions. Readers are cautioned not to place undue reliance on
this forward-looking information, which is given as of the date it is expressed in this press release, and the Company undertakes no obligation to update
publicly or revise any forward-looking information, except as required by applicable securities laws. For more information on the Company, investors should
review the Company's continuous disclosure filings that are available at
www.sedarplus.ca
.
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For further information:
For more information on Graphite One Inc., please visit the Company's website, www.GraphiteOneInc.com or contact: Anthony Huston,
CEO, President & Director, Tel: (604) 889-4251, Email: [email protected]; Investor Relations Contact, Tel: (604) 684-6730,
CO: Graphite One Inc.
CNW 07:00e 21-OCT-24