Graphite One (TSXV:GPH) Aligns with U.S. Push for Domestic Battery Manufacturing

Highlights

• Graphite One has welcomed the Pentagon report supporting domestic battery manufacturing in the US.
• Asian suppliers currently control ~92% of the battery manufacturing equipment market, creating strategic supply chain risks.
• The report recommends tax credits, co-investment funding, and incentives for battery equipment production.
• Graphite One continues advancing its Ohio anode materials facility and the Graphite Creek mine project.
• The company has received more than US$2 billion in non-binding EXIM Bank Letters of Interest and US$42 million in government funding.

Graphite One Inc. (TSXV:GPH) (OTCQX:GPHOF) is gaining attention as U.S. policymakers highlight the need for domestic battery manufacturing. This week, a Pentagon report emphasized the importance of strengthening domestic battery manufacturing capabilities in the United States.  Developed in collaboration with the interagency Federal Consortium for Advanced Batteries and reported by POLITICO, the report outlines recommendations to reduce reliance on foreign suppliers in a sector currently dominated by Asian manufacturers. For Graphite One, which is building an integrated graphite supply chain in the United States, the report aligns with key aspects of its development strategy.

Pentagon Flags Supply Chain Risks

The report highlights vulnerabilities arising from foreign dependence on battery manufacturing equipment, which are critical for military vehicles, drones, grid storage systems and AI data centres.

The study notes that Asian suppliers currently account for approximately 92% of the battery manufacturing equipment market, and assembling a complete battery production line in the United States without some level of foreign-produced equipment is currently not feasible.

To address these challenges, the Pentagon recommends targeted production and investment tax credits, the creation of a co-investment fund, and a framework that would support licensing established manufacturing technologies from suppliers in allied nations.

The report also proposes that federal grants and loans for battery production be tied to requirements that facilities incorporate a percentage of US-manufactured equipment, creating what it describes as a “guaranteed demand signal” for domestic suppliers.

Importantly, the study estimates these efforts could create 5,000 new American jobs and access a global market projected to reach US$48 billion by 2032.

Alignment With Graphite One's Plans

The recommendations closely align with Graphite One’s plans for its Ohio Advanced Anode Materials (AAM) facility. The project will require specialized equipment for graphitization, purification, and processing activities associated with advanced battery materials production.

Graphite One has already secured a site in Ohio and continues to advance equipment procurement planning, power agreements, and offtake discussions. These activities are progressing alongside development of the Graphite Creek mine in Alaska, a project covered under the FAST-41 federal permitting framework.

The company intends to explore both domestic and allied equipment solutions as they become available, while prioritising supply chain security and overall project economics.

Government Support Continues

Graphite One has received several forms of US government support, including non-binding Letters of Interest from EXIM Bank exceeding US$2 billion to fund the construction of the Graphite Creek mine and the Ohio AAM facility. The company has also received US$42 million in funding through the Department of Defense Title III program and the Defense Logistics Agency to fund the completed Graphite Creek feasibility study and the graphite-based foam fire suppressant project.

In addition, the Graphite Creek project is included on the FAST-41 permitting dashboard, a framework designed to improve coordination and transparency for major infrastructure and resource projects.

The company also noted the extension of tariff exemptions on imported battery-manufacturing equipment until at least November 2026, which it said acknowledges the industry's current reliance on imported technologies while domestic capabilities continue to develop.

Building a Domestic Graphite Supply Chain

Graphite One continues to pursue a complete US-based graphite-to-anode supply chain.

The strategy is anchored by the Graphite Creek deposit in Alaska, which has been recognised by the US Geological Survey as the largest graphite deposit in the United States and among the largest globally.

The company’s planned supply chain includes mining operations at Graphite Creek, transportation through the Port of Nome, and downstream processing into advanced graphite and anode materials at the Ohio facility.

Graphite One is also evaluating the potential for a co-located recycling facility that could recover graphite and other battery materials, supporting a more circular battery materials supply chain.

Graphite One's broader objective is to develop a vertically integrated enterprise capable of mining and processing natural graphite while manufacturing artificial and natural graphite active anode materials. The company is targeting applications across electric vehicles, energy storage systems, AI data centres, and defence-related technologies. As policy discussions increasingly focus on domestic supply chain resilience and critical minerals security, Graphite One continues advancing projects intended to establish a US-based source of graphite and battery anode materials.

Shares of GPH traded at CAD 1.13, up around 3%, at the time of writing on June 4, 2026.