US Bets $2B on Domestic Graphite to Counter China's EV Dominance

WASHINGTON, D.C. – December 18, 2025 – In a powerful signal of its intent to build a secure domestic supply chain for critical minerals, the U.S. government, through the Export-Import Bank of the United States (EXIM), has dramatically increased its potential financial backing for Graphite One Inc. The non-binding Letters of Interest (LoI) now total a staggering $2.07 billion, earmarked for a vertically integrated project designed to take graphite from an Alaskan mine to an Ohio manufacturing plant, ultimately producing essential anode material for electric vehicle (EV) batteries.

The move represents one of the most significant federal commitments to date in the race to decouple America's green energy and defense sectors from foreign supply chains, particularly those controlled by China. The United States is currently 100% dependent on imports for natural graphite, a reality that has raised alarms across Washington.

A Strategic Bet on American Soil

The amended LoIs, announced today, significantly upscale EXIM's potential involvement. Support for Graphite One's Graphite Creek Project, located north of Nome, Alaska, has been increased from $570 million to $670 million. More substantially, the potential financing for the company's planned advanced graphite materials plant in northeastern Ohio has been quadrupled, jumping from $325 million to $1.4 billion.

This funding is being channeled through two of EXIM's most strategic initiatives: the "Make More in America" program and the "China and Transformational Exports Program" (CTEP). CTEP was specifically mandated by Congress to counter export subsidies from the People's Republic of China and bolster U.S. competitiveness in ten key high-tech sectors, including energy storage.

"Graphite One is building America’s graphite supply chain from the ground up--from the largest natural graphite deposit in the country in Alaska, to processing facilities in Ohio," said EXIM Chairman Jovanovic following a meeting with Graphite One's leadership. "This is exactly the kind of project President Trump's agenda demands: securing critical minerals, revitalizing American manufacturing capacity, and helping support the jobs of the future across our great country."

The increased backing for the Ohio facility is intended to support a phased expansion to an annual production capacity of 100,000 metric tons of anode active material, a critical component in lithium-ion batteries. The LoIs, while non-binding and conditional upon a formal application and due diligence process expected in 2026, would cover approximately 70% of the project's total capital costs.

"All of us at G1 are so appreciative of the support we are receiving from EXIM under the leadership of Chairman Jovanovic," said Anthony Huston, CEO of Graphite One. "There is no reason the U.S. should be dependent on foreign-sourced graphite when we have a generational resource in Graphite Creek anchoring a 100% U.S.-based advanced graphite materials supply chain."

From Alaskan Tundra to Ohio's Voltage Valley

Graphite One's ambitious plan envisions a complete mine-to-market ecosystem entirely on U.S. soil. The project is anchored by the Graphite Creek deposit, which the U.S. Geological Survey has recognized as the largest in the United States and among the largest in the world. Mined material would be shipped from the Port of Nome to the proposed manufacturing plant in Warren, Ohio, a region branding itself as "Voltage Valley" for its growing role in the EV industry.

Progress on the complex undertaking has been accelerated by other forms of federal support. In June 2025, the Graphite Creek mine was accepted onto the FAST-41 permitting dashboard, a federal program designed to streamline the often-protracted environmental review and authorization process for major infrastructure projects. A feasibility study, its completion expedited by a $37.3 million grant from the Department of Defense under the Defense Production Act (DPA), was filed in April 2025.

However, the path forward is not without challenges. Despite the federal fast-tracking, several local Inupiaq tribes in Alaska have voiced strong opposition, citing concerns that tribal consultations were not adequately conducted before the project received federal funding and was placed on an accelerated permitting schedule.

The Ohio facility, planned for a site formerly used by the DoD to stockpile critical minerals, is slated to be built in seven phases to manage capital risk. The company aims to begin construction within 36 months, with a target to start operations by 2028, initially processing synthetic graphite from other sources before the Alaskan mine's natural graphite becomes available.

The High-Stakes Game of Graphite Geopolitics

This multi-billion-dollar government backing is a direct response to a stark geopolitical reality: China's overwhelming dominance of the global graphite market. China currently accounts for roughly 70% of the world's natural graphite production and, more critically, over 90% of the processing capacity to turn it into the high-purity anode material that batteries require.

This concentration has exposed a significant vulnerability in Western supply chains. Beijing has already demonstrated its willingness to use this leverage, implementing export restrictions on graphite products as a tool in its ongoing trade disputes. The dependency poses a direct threat to U.S. national security and economic ambitions, as graphite is essential not only for EV batteries but also for military energy systems and other advanced technologies.

The EXIM LoIs are part of a broader, coordinated U.S. government strategy to mitigate this risk. In July 2025, the Department of Commerce imposed steep tariffs on Chinese graphite anode materials to counter what analysts see as market manipulation through oversupply. The Department of Defense has also been proactive, using the DPA to directly fund the acceleration of projects like Graphite Creek to secure the domestic industrial base.

Charting a Course Through Market and Financial Headwinds

While the government's financial signal is powerful, the LoIs are not a blank check. Graphite One must still secure the remaining 30% of the project's capital costs, a sum likely exceeding $800 million. The company has stated it is in discussions with major North American investment banks to raise this capital. A formal application to EXIM is not expected until 2026, after which the bank will conduct its own extensive due diligence.

Securing offtake agreements with end-users is crucial to de-risking the project for private investors. To that end, Graphite One has entered into a non-binding supply agreement with EV manufacturer Lucid Motors, a preliminary step toward guaranteeing a customer for its future output. The collaboration is part of a wider industry initiative aimed at fostering a competitive domestic automotive supply chain.

The project's success hinges on navigating these financial hurdles while also addressing regulatory requirements and local community concerns in both Alaska and Ohio. The $2.07 billion expression of interest from EXIM provides a powerful tailwind, but the journey to establishing America's first fully integrated graphite supply chain remains a long and complex one.