Northern Graphite Comments on New U.S. Graphite Procurement Regulations OEMs must show meaningful progress toward having a North American supply chain in place before January 2027
Northern Graphite Comments on New U.S.
Graphite Procurement Regulations
OEMs must show meaningful progress toward having a North American supply chain in
place before January 2027
Ottawa, Ontario--(Newsfile Corp. - May 6, 2024) - Northern Graphite Corporation
(TSXV: NGC)
(OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG)
(
the "
Company
" or "
Northern
"
) is pleased to provide
comment on the Biden Administration's new, two-year certification requirements for auto and battery
makers under the final implementation rules of the Inflation Reduction Act's ("IRA") Section 30D Clean
Vehicle Tax Credit.
The Biden administration announced a
decision on May 3
that deems graphite as untraceable and
allows Original Equipment Manufacturers ("OEMs") a two-year "transition" period to source Battery
Anode Material (BAM) from China while local North American production is established. BAM is made
from a blend of natural and synthetic graphite and has been deemed untraceable due to the difficulty in
determining the source of crude oil used to manufacture synthetic graphite. The Administration's
decision requires OEMs to commit to offtake agreements with North American graphite producers in the
interim so that they can source from the domestic supply chain when the two-year exemption from FEOC
(Foreign Entity of Concern) requirements expires at the end of 2026.
"We look forward to continuing to work with OEMs to reach supply and price offtake agreements that will
enable us to finance our production plans and be ready to supply gigafactories with the graphite anode
material they need for a viable EV revolution in North America," said Northern Chief Executive Officer
Hugues Jacquemin. "OEMs must commit to sourcing IRA-compliant graphite from North American
suppliers, and establishing these commitments in a timely manner will be critical to a sustainable local
industry that is competitive and not dependent on sourcing graphite from FEOCs like China."
Northern Graphite is the only producer of flake graphite in North America. Its cornerstone Lac des Isles
mine in Quebec, Canada has been supplying traditional graphite markets for over 30 years, from
refractory bricks for steelmaking to heat management in mobile phones and friction and lubrication
products for brakes and brake linings for the global automobile industry. The Company is also working
toward a restart of its Okanjande mine in Namibia in 2025, subject to financing. The Lac de Isles and
Okanjande mines and facilities are fully permitted and IRA-compliant.
Northern is a member of the North American Graphite Alliance (NAGA), which represents North
American and Canadian producers of battery-grade natural and synthetic graphite, both of which are
critical and the leading component in the production of lithium-ion batteries. NAGA has been consulting
with the U.S. government and on May 3 issued a
statement
urging the Biden Administration to stringently
impose its new two-year certification requirements for OEMs under the IRA's Section 30D Clean Vehicle
Tax Credit. The IRA's Section 30D credit encourages automakers to source components — including
critical minerals within lithium-ion batteries — domestically so that consumers can receive a maximum
$7,500 tax credit when purchasing an eligible EV.
This final rule grants OEMs a two-year window to continue purchasing graphite mined, manufactured,
and processed in China, until January 1, 2027, upon demonstrating a meaningful procurement plan to
secure compliant supply chains by the time the exemption expires.
"With NAGA, we look forward to continuing conversations with government and with OEMs to establish
meaningful procurement plans to secure IRA-compliant supply chains," said Mr. Jacquemin.
About Northern Graphite
Northern, the only flake graphite producing company in North America, 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 expects to become one of the largest natural graphite producers outside of China when its
Namibian operations come back online. The Company also has the large-scale Bissett Creek project in
Ontario and substantial additional measured and indicated resources in Namibia and the Mousseau
property in Quebec which are expected to be sources of continued production growth in the future.
All
projects have "battery quality" graphite and are located close to infrastructure in politically stable
jurisdictions.
For media inquiries contact
Pav Jordan, VP of Communications
Email:
For additional information
Please visit the Company's website at
https://www.northerngraphite.com/home/
, the Company's profile
on
www.sedarplus.ca
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 news release include statements
regarding, among others, the Company's plans to extend the mine life of its LDI mine, develop its
Baie-Comeau Battery Anode Material facility, intentions to restart the Okanjande mine in Namibia
and development plans for its other projects including Bissett Creek. 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 and the inability to raise required financing. 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
news release.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/208119