Northern Graphite Announces LOI with Graphex Technologies to Produce Natural Graphite Anode Material Companies Plan to Build a Mine-to-Battery Supply Chain in North America and Europe
Northern Graphite Announces LOI with
Graphex Technologies to Produce Natural
Graphite Anode Material
Companies Plan to Build a Mine-to-Battery Supply Chain in
North America and Europe
Ottawa, Ontario--(Newsfile Corp. - December 21, 2022) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB:
NGPHF)
(FSE: 0NG) (XSTU: 0NG)
(the "
Company
" or "
Northern
") announces that it has
entered into a non-binding Letter of Intent ("LOI") with Graphex Technologies LLC, the U.S. subsidiary of
Graphex Group Limited (NYSE American: GRFX) (HKSE: 6128) (collectively "Graphex"), a global leader
in the production of the anode material used in electric vehicles (EV)/lithium-ion (Li-ion) batteries, with
the intent of combining Northern's raw material supply capabilities with Graphex's downstream
processing expertise to build plants that will provide an end-to-end Northern American supply chain from
the graphite mine to the battery.
Graphex and Northern intend to diligently and in good faith negotiate the terms of a Joint Venture,
including management and ownership percentages, to jointly produce coated spherical graphite anode
material for the EV/battery market. Northern will provide the Joint Venture with security of raw material
supply (graphite concentrate) and it is contemplated that Graphex will license and/or contribute all the
technology, plans and expertise for building and operating the plant(s).
Graphex has already secured
and is developing a site in Warren, Michigan that is being designed to produce 15,000 tonnes 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 Joint Venture and to
participate in the construction of other processing plants provided that Northern may not directly or
indirectly use, exploit or disclose any of Graphex's technology.
Hugues Jacquemin, Northern's CEO commented that "collaborating
with an existing anode material
producer that has established technology and expertise will enable Northern to leapfrog the product
development stage and to shorten both the product qualification period and our time to market.
We look
forward to working with Graphex to establish a secure, transparent supply chain for battery anode
material in both North America and Europe."
"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," said 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 applying our experience and expertise to solve industry-
wide challenges - this effort with Northern is exactly that."
Graphite is the anode material in EV batteries and its single largest component. Typically, graphite ore
is mined and concentrated to ~95% purity by companies such as Northern. The mine concentrate is then
shaped, purified, and coated to create the critical EV battery anode material in a downstream process
carried out by companies like Graphex. The supply picture for natural graphite in North America is
marked both by a significant shortfall in the availability of graphite mine concentrate (particularily from
non-Chinese sources), and a complete absence of experienced commercial-scale downstream
processing to transform it into battery-grade anode material. The collaboration between Northern and
Graphex is designed to solve both issues on an industry-wide scale by providing OEMs and battery
makers with a transparent, ESG compliant supply of quality product needed to meet current and
projected demand.
Northern owns the only producing graphite mine in North America with current production of 15,000 tpa
of graphite mine concentrate.
The Company also has three development projects with resources that are
capable of supporting production of over 100,000 tpa by 2025 and 300,000 tpa by 2027. Graphex has a
long history of processing mine concentrate into high yield, high quality battery anode material and
currently produces 10,000 tpa. Graphex is the only experienced downstream processor of natural
graphite that has announced plans to develop anode material processing plant(s) in North America. The
collaboration between Northern and Graphex has the potential to accelerate this process. Given the U.S.
government's emphasis on stimulating the development of domestic supply chains for critical minerals
through the Inflation Reduction Act, the Bipartisan Infrastructure Law and the Defense Production Act, the
Graphex-Northern collaboration represents a significant advancement toward making a domestic supply
chain for graphite anode material a reality.
About Northern Graphite
Northern is a Canadian, TSX Venture Exchange listed company that is focused on becoming a world
leader in producing natural graphite and upgrading it into high value products critical to the green
economy including anode material for lithium ion batteries/EVs, fuel cells and graphene, as well as
advanced industrial technologies.
Northern is the only significant graphite producing company in North America and will become the third
largest outside of China when its Namibian operations come back online.
The Company also has two
large scale development projects, Bissett Creek in Ontario and Okanjande in Namibia, that will be a
source of continued production growth in the future.
All projects have "battery quality" graphite and are
located close to infrastructure in politically stable countries.
About Graphex
Graphex Group Limited is a Cayman Island company with its principal offices in Hong Kong and regional
offices in Shanghai and Royal Oak, MI, USA. Graphex is focused on the development of technologies
and products to enhance renewable energy, particularly the production of spherical graphite and
graphene, key components in EVs/lithium-ion batteries as well as in other uses. Graphex has extensive
commercial experience in the deep processing of graphite and producing battery grade purified
spherical graphite. Current production is 10,000 tpa and an expansion is underway to increase
production to 20,000 tpa within the next 12 months. Graphex intends to further expand existing
operations to 40,000 tpa over the next three years. Graphex is currently among the top suppliers of
specialized spherical graphite to the EV and renewable energy industries and holds patents in areas
including products, production methods, machinery design, and environmental protection. Graphex's
strategy is to expand its operations globally to support energy transition and electrification efforts
worldwide.
For additional information
Please visit the Company's website at
http://www.northerngraphite.com/investors/presentation/
, the
Company's profile on
www.sedar.com,
our
Social Channels
listed below or
contact the Company at
(613) 271-2124.
YouTube
Cautionary Note Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" within the meaning of applicable
Canadian securities laws. Forward-looking statements and information are frequently characterized by
words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "potential",
"possible" and other similar words, or statements that certain events or conditions "may", "will",
"could", or "should" occur. Forward-looking statements in this release include statements regarding,
among others, the Company's intentions with respect to bringing its Namibian operations back on line
and to advancing its developments projects to production, and developing the capacity to
manufacture value added products. All such forward-looking statements are based on assumptions
and analyses made by management based on their experience and perception of historical trends,
current conditions and expected future developments, as well as other factors they believe are
appropriate in the circumstances. However, these statements are subject to a variety of risks and
uncertainties and other factors that could cause actual events or results to differ materially from those
projected including, but not limited to unexpected changes in laws, rules or regulations, or their
enforcement by applicable authorities; the failure of other parties to perform as agreed; social or
labour unrest; changes in commodity prices; unexpected failure or inadequacy of infrastructure and
the failure of ongoing and contemplated studies to deliver anticipated results or results that would
justify and support continued studies, development or operations. Readers are cautioned not to place
undue reliance on forward-looking information or statements.
Although the forward-looking statements contained in this news release are based on what
management believes are reasonable assumptions, the Company cannot assure investors that
actual results will be consistent with them. These forward-looking statements are made as of the date
of this news release and are expressly qualified in their entirety by this cautionary statement. Subject
to applicable securities laws, the Company does not assume any obligation to update or revise the
forward-looking statements contained herein to reflect events or circumstances occurring after the
date of this news release.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/149020