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The 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) (OTCKB: NGPHF) (FSE: 0NG) (KSSTU: 0NG) (“Company“or”Northern“) announces that it has entered into a non-binding Letter of Intent (“LOI”) with Graphek Technologies LLC, the US subsidiary of Graphek Group Limited (NISE American: GRFX) (HKSE: 6128) (collectively “Graphek”), a global leader in anode materials that used in electric vehicle (EV)/lithium-ion (Li-ion) batteries, with the intention of combining Northern’s raw material supply capabilities with Graphex’s downstream processing expertise to build facilities that will provide an end-to-end North American supply chain all the way from the graphite mine to the battery.
Graphex and Northern intend to negotiate in good faith the terms of the joint venture, including management and ownership percentages, to jointly manufacture coated spherical graphite anode material for the EV/battery market. Northern will provide security of supply of raw materials (graphite concentrate) to the joint venture and it is envisaged that Graphek will license and/or contribute all technology, plans and expertise for the construction and operation of the plant. Graphex has already secured and is developing a site in Warren, Michigan that is 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 will continue to have the right 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 facilities provided that Northern may not directly or indirectly use, exploit or disclose any of Graphex’s technology.
Hugues Jaquemin, CEO of Northern commented that “collaborating with an existing anode material manufacturer that has established technology and expertise will allow Northern to skip the product development phase and 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 North America and Europe.”
“By combining the experience and expertise of Graphek in downstream processing and Northern in feedstock manufacturing, the collaboration will significantly improve the anode supply picture for the industry, starting in North America,” said John DeMaio, CEO of Graphek Technologies. “From the moment we decided to expand into North America, we’ve been committed to providing thorough support to electrification efforts, which means applying our experience and expertise to address challenges across the industry – this effort with Northern is just that.”
Graphite is the anode material in EV batteries and its largest component. Typically, graphite ore is mined and concentrated to ~95% purity by companies such as Northern. The mine concentrate is then shaped, refined and coated to create the critical EV battery anode material in a downstream process carried out by companies such as Graphex. The natural graphite supply picture in North America is marked by both a significant lack of availability of graphite mine concentrate (especially from non-Chinese sources), and a complete absence of experienced commercial downstream processing to transform it into a battery. anode material. The collaboration between Northern and Graphex is designed to solve both industry-wide problems by providing OEMs and battery manufacturers with a transparent, ESG compliant supply of quality products needed to meet current and projected demand.
Northern owns the only producing graphite mine in North America with a current production of 15,000 tpa of graphite mine concentrate. The company also has three development projects with resources capable of supporting production of over 100,000 tpa by 2025 and 300,000 tpa by 2027. Graphek has a long history of processing mine concentrate into high quality battery anode material and currently produces 10,000 tpa. Graphex is the only experienced natural graphite processor to have announced plans to develop anode processing plant(s) in North America. The collaboration between Northern and Graphex has the potential to accelerate this process. Given the US government’s emphasis on stimulating the development of domestic supply chains for critical minerals through the Inflation Reduction Act, the Bipartisan Infrastructure Act and the Defense Production Act, the Graphex-Northern collaboration represents significant progress toward creating a domestic graphite anode supply chain. material reality.
About northern graffiti
Northern is a TSX Venture Exchange-listed Canadian company focused on becoming a world leader in the production of 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 company in North America and will become the third largest outside China when its Namibian operations come back online. The company also has two major development projects, Bisset Creek in Ontario and Okyanande in Namibia, which will be the source of continued production growth in the future. All projects have “battery quality” graffiti and are located near infrastructure in politically stable countries.
About Graphex
Graphek Group Limited is a Cayman Islands company with head 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 improve renewable energy, in particular the production of spherical graphite and graphene, key components in EV/lithium-ion batteries, as well as other uses. Graphex has extensive commercial experience in the deep processing of graphite and the production of purified spherical graphite for batteries. Current production is 10,000 tpa and expansion is underway to increase production to 20,000 tpa in the next 12 months. Graphek intends to further expand existing operations to 40,000 tpa over the next three years. Graphex is currently among the leading suppliers of specialized spherical graphite to the electric vehicle and renewable energy industry and holds patents in areas including products, production methods, machine design and environmental protection. Graphex’s strategy is to expand its business globally to support the energy transition and electrification efforts around the world.
For additional information
Visit the Company’s website at http://www.northerngraphite.com/investors/presentation/, the Company’s profile at www.sedar.com, our Social channels listed below or contact the company at (613) 271-2124.
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Note Regarding Forward-Looking Statements
This release contains certain “forward-looking statements” within the meaning of applicable Canadian securities laws. Forward-looking statements and information are often 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. The forward-looking statements in this release include statements regarding, among other things, the company’s intentions to return its operations in Namibia and to advance its development projects into production and develop capacity to produce value-added products. All such forward-looking statements are based on assumptions and analyzes 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 under the circumstances. However, these statements are subject to various 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 application from by the competent authorities. ; failure of other parties to act as agreed; social or labor unrest; changes in the prices of goods; unexpected failure or inadequacy of infrastructure and failure of ongoing and planned studies to deliver expected 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 press release are based on what management believes to be 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 press release and are expressly qualified in their entirety by this cautionary statement. Subject to applicable securities laws, the Company undertakes no obligation to update or revise the forward-looking statements contained herein to reflect events or circumstances occurring after the date of this release.
Neither TSKS Venture Exchange nor its regulation service provider (as that term is defined in the policies of TSKS Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the original version of this press release, visit https://www.nevsfilecorp.com/release/149020
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