NY Graphite Project Gets Federal Backing to Break China's Mineral Grip

GOUVERNEUR, N.Y. – December 01, 2025 – In the quiet landscape of upstate New York, a project is taking shape that sits at the nexus of national security, industrial policy, and the green energy transition. Titan Mining Corporation has unveiled a Preliminary Economic Assessment (PEA) for its Kilbourne Graphite Project that not only promises robust financial returns but is also supercharged by significant strategic backing from the Export-Import Bank of the United States (EXIM). The announcement signals a calculated move to establish America’s first integrated graphite production capability in over 70 years, a direct challenge to the nation's complete reliance on foreign supply chains for this indispensable mineral.

The project's headline figures are compelling: a post-tax Net Present Value (NPV) of $513 million, a 37% Internal Rate of Return (IRR), and a rapid 2.7-year payback period. But the real story lies behind the numbers. With a plan to produce nearly 40,000 metric tonnes of graphite annually—enough to satisfy almost half of current U.S. demand—and armed with a potential $120 million in federal project financing, Titan’s Kilbourne project is transitioning from a geological prospect into a key piece of American industrial strategy.

A Strategic Infusion of Capital and Confidence

The most critical element of Titan's announcement is the substantial and multi-layered support from EXIM. The federal agency has not only issued a non-binding Letter of Interest for up to $120 million to fund the bulk of construction but has also approved an additional $5.5 million in non-dilutive funding to accelerate the project’s Feasibility Study. This marks the first time EXIM has funded a domestic project at the feasibility stage, a clear signal of Washington's urgency to fast-track domestic sources of critical minerals.

This funding falls under EXIM’s “Make More in America” initiative, a program explicitly designed to strengthen domestic supply chains for sectors essential to national and economic security. For a mineral like graphite, the timing is crucial. The U.S. is currently 100% dependent on imports for the 76,000 tons of natural graphite it consumes annually. Data from 2020-2023 shows that 43% of these imports came from China, which dominates the global market, accounting for an estimated 77% of world production and nearly all of the world's processing capacity for battery-grade material. This concentration of supply presents a profound vulnerability for American industries, from electric vehicle battery manufacturers to defense contractors.

John Jovanovic of the Export-Import Bank of the United States framed the investment in starkly strategic terms. "This investment demonstrates EXIM's commitment to strengthening domestic supply chains for strategic minerals essential to our national security and economic prosperity," he stated. "Titan's innovative approach to developing America's first integrated graphite capability in more than 70 years aligns directly with our mission to support U.S. jobs and reduce foreign dependencies in critical sectors."

EXIM’s involvement is far more than a financial backstop; it’s a powerful de-risking event for private investors. The federal government’s seal of approval validates the project's strategic importance, providing a level of confidence that commercial lenders and equity markets often require to engage with long-cycle, capital-intensive mining projects.

Unpacking the Kilbourne Economics

While federal support provides a strategic tailwind, the project's viability ultimately rests on its underlying economics, which the PEA outlines in compelling detail. The initial capital expenditure (CAPEX) of $156 million is notably efficient for a project of this scale. This capital efficiency is achieved by leveraging the substantial existing infrastructure at Titan’s adjacent Empire State Mine, an active zinc operation. This synergy bypasses the need for extensive new roads, power lines, and administrative buildings, allowing capital to be focused directly on the open-pit mine and processing facilities.

Titan's product strategy is equally sophisticated, aiming to capture maximum value from every ton of ore. The plan starts with producing graphite concentrate but quickly moves downstream to higher-margin, value-added products. This includes Micronized Natural Flake Graphite (NFG), Purified Micronized Graphite (PMG), and, crucially, Coated Spherical Purified Graphite (CSPG) starting in the project’s fifth year. CSPG is the high-purity, high-performance anode material essential for modern lithium-ion batteries, commanding a significant price premium. The PEA's pricing assumptions reflect this, with CSPG projected to sell for over $11,000 per tonne, compared to just over $1,500 per tonne for basic concentrate.

This value-added approach, combined with the estimated effects of the Advanced Manufacturing Tax Credits under Section 45X of the Inflation Reduction Act, underpins the project's impressive 37% after-tax IRR. By planning an integrated mine-to-anode-material operation on a single site, Titan is positioning itself not just as a raw material supplier but as a key technology partner in the domestic battery ecosystem.

From Zinc Miner to Critical Materials Powerhouse

The Kilbourne project represents a strategic pivot for Titan Mining, transforming it from a conventional zinc producer into what the company calls a "multi-metal critical materials complex." This evolution is a microcosm of a broader trend where traditional industrial players are retooling to serve the new energy economy. The established zinc operations at the Empire State Mine provide a steady source of cash flow, offering a degree of financial stability and internal funding capacity that reduces reliance on dilutive equity raises during the graphite project's development phase.

“The Kilbourne Project Study represents a pivotal milestone in advancing U.S. critical mineral independence,” said Rita Adiani, CEO and President of Titan Mining. “EXIM’s support is far more than capital—it is validation of Titan’s strategic role in establishing America’s graphite independence. Together with our established zinc operations generating cash flow, we are building a U.S.-anchored critical minerals platform with clear, long-term growth.”

The company’s vision extends even beyond zinc and graphite. The press release notes that testing for germanium—another critical mineral vital for semiconductors and defense optics—is already underway, suggesting a long-term strategy to maximize the value of its geological assets and become a diversified supplier for America's most strategic industries.

The Road Ahead: Execution and In-Ground Potential

With a positive PEA and strong federal backing, Titan is now moving the Kilbourne project toward a full Feasibility Study in 2026, with a target to begin construction in 2027. The path forward involves both opportunity and calculated risk. The PEA is based on an Inferred Mineral Resource, which is considered too geologically speculative to be classified as a proven reserve. For investors, this classification requires a careful assessment of geological risk.

However, this risk is balanced by significant exploration potential. The current resource estimate of 653,000 contained tonnes of graphite is based on drilling only 30% of the known mineralized strike length, leaving a vast area open for future resource expansion and potential extension of the mine’s initial 13-year life. The upcoming EXIM-funded drilling program will be crucial in converting inferred resources to higher-confidence categories and proving out the project's ultimate scale.

Navigating the permitting landscape in New York State will be another key execution milestone. However, by locating the project within the footprint of an existing, permitted mining operation, Titan may be able to streamline parts of the regulatory and community engagement process. The project is also a significant economic boon for the region, expected to create 160 new permanent jobs and add to the more than 300 total employees at the Empire State Mine complex. As Titan moves to secure offtake agreements and qualify its advanced graphite products with battery and industrial customers, the Kilbourne project will serve as a critical test case for America's ability to turn strategic ambition into industrial reality.