The graphite mines in the United States were largely shut down more than seventy years ago. As a mineral with an extremely wide range of applications, graphite is used in various products, from nuclear reactors to pencils. However, at that time, when this mineral could be obtained at very low cost from other countries, mining graphite domestically in the U.S. appeared to have no economic justification. Today, against the backdrop of rapid global expansion in the battery industry, the U.S. is reevaluating graphite, a critical mineral that has long been overlooked.
In New York State, $Titan Mining (TII.US)$ is advancing the development of graphite resources within its existing mining area. The company has initiated limited-scale extraction and plans to achieve commercial production by 2028. Company management stated that geopolitical trends are in their favor, and the future products of this project will target high-tech manufacturing, energy storage, and industrial applications, including large-scale lithium-ion battery systems, high-temperature resistant materials, and specialty lubricants.
Titan estimates that upon full production, the project will produce approximately 40,000 tons of graphite concentrate annually, equivalent to about half of the current U.S. demand for natural graphite. The company revealed that market demand is clear, and potential customers have shown significant interest in the project's capacity.
Analysts pointed out that as geopolitical conditions change and uncertainties in global supply chains rise, the strategic importance of graphite, a core material for lithium-ion batteries, is significantly increasing.
Graphite is widely used as a negative electrode material in lithium-ion batteries and possesses properties such as high electrical conductivity and heat resistance, making it indispensable in advanced manufacturing, energy storage, and certain military applications. The U.S. Department of Energy has designated graphite as a “critical mineral,” and the Department of the Interior has included it on the national list of critical minerals. Industry experts generally predict that global graphite demand will continue to grow over the next decade, driven by rising demand for electric vehicles, grid energy storage, and electronic devices.
However, in recent years, heightened concerns over supply chain security and industrial autonomy have prompted the United States to accelerate efforts toward localizing critical minerals. Several companies have begun advancing graphite mining projects in an attempt to fill domestic supply gaps.
On the policy front, the U.S. government is supporting the development of critical mineral projects through various means. The Inflation Reduction Act passed in 2022 provides tax incentives for critical mineral production, and relevant agencies have recently expedited approval processes while using government financing tools to support feasibility studies and construction. The U.S. Export-Import Bank has expressed willingness to consider providing up to $120 million in financing support for the New York graphite project.
In addition to the New York project, several other graphite projects are currently underway in the United States. Mines in Alabama, Montana, and Alaska have entered the permitting or early development stages. Among them, a project in Alaska is considered to hold the largest known deposit of large-flake graphite in the U.S., with long-term development potential.
Both academia and industry generally agree that under the global energy transition, the localization of critical minerals will become a long-term trend. Researchers from the University of Michigan’s Sustainable Systems program noted that countries with exploitable resources reducing reliance on external supplies can enhance industrial resilience and economic security.
Although the United States may still find it difficult to fully achieve graphite self-sufficiency in the short term, the proportion of domestic supply is expected to increase significantly as new projects gradually come online. Analysts believe that this process will not only reshape the landscape of the U.S. graphite industry but also have a profound impact on the global battery materials supply chain.
Gregory Keoleian, Co-Director of the Center for Sustainable Systems at the University of Michigan, stated: "These initiatives are necessary. When you have resources that can be developed, you should not rely entirely on other countries."
Editor/Doris