Northern Graphite signs graphite concentrate sales deal with Graphex

Northern Graphite, the owner of the Okanjande mine in Namibia and Bisset Creek in Canada, has agreed to supply graphite concentrate to Graphex Technologies LLC in a joint venture deal announced on 21 December 2022. 

The TSX-listed Northern Graphite wants to become a world leader in producing anode material for lithium-ion batteries/electric vehicles (EVs), fuel cells and graphene, and advanced industrial technologies.

Graphex Group Limited is a Cayman Islands company with its principal offices in Hong Kong and regional offices in Shanghai and Royal Oak, MI, USA. 

Graphex develops technologies and products to enhance renewable energy, particularly the production of spherical graphite and graphene, critical components in EVs/lithium-ion batteries, as well as in other uses. 

The two companies intend to diligently and in good faith negotiate the terms of a joint venture, including management and ownership percentages, to produce coated spherical graphite anode material for the EV/battery market. 

Northern Graphite will supply graphite concentrate, and Graphex will license and 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, to produce 15,000 tonnes per annum (tpa) of battery anode material. Northern Graphite is evaluating sites in Canada that could accommodate the production of up to 200,000 tpa of anode material. 

In addition, Northern Graphite 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 where it may not directly or indirectly use, exploit or disclose any of Graphex's technology.

Northern Graphite chief executive officer Hugues Jacquemin said collaborating with an existing anode material producer with established technology and expertise would enable them to leapfrog the product development stage and shorten the product qualification period and the 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," Jacquemin said.

Graphex chief executive officer John DeMaio also said the collaboration would improve the anode supply picture for the industry significantly, beginning in North America.

"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," DeMaio said.