What updates can you share about Northern Graphite’s cornerstone Lac des Iles mine?

The Lac des Iles mine in Québec, North America’s only operating graphite mine, marked 35 years of continuous production in 2025. Historically supplying the industrial, electronics, and defense sectors, the current pit is nearing depletion. However, exploration has identified new resources within the lease area, potentially extending the mine’s life by eight years. To access these resources, the pit must be pushed back, requiring approximately CA$10 million in financing. While funding is not yet secured, the extension is considered vital for maintaining supply to long-standing customers and supporting the dedicated workforce, many of whom have worked at the mine for decades.

In the first quarter of 2025, while our sales volume was lower, pricing was significantly higher, due to both market conditions and our product mix. As a result, we were able to generate mining income. While our revenue is not yet enough to fund our project development, we require much less external funding than many other junior mining companies. Are you seeking government support for the Lac des Iles extension?

Yes, we are actively seeking support, but it is complicated. As an operating mine, we do not fit well into existing funding programs focused on exploration, infrastructure or innovation, since we are not building new assets or developing new processes. Additionally, lower commodity prices have reduced our market capitalization, limiting our ability to borrow the approximately CA$10 million needed to push back the pit and extend mine life. What is the strategic importance of North American graphite production?

The United States has minimal domestic graphite resources and depends heavily on imports, with China supplying around 95% of processed graphite. In response, the Association of Graphite Producers petitioned the US government, resulting in duties of up to 720% on Chinese graphite anode material due to subsidies. More trade actions are expected. These measures aim to support North American producers. Canada’s trade agreements with Europe also open access to global markets.

There are two key graphite markets: battery anode material and traditional sectors like electronics and defense. While battery graphite prices have dropped due to Chinese oversupply, recent trade actions may stabilize pricing and attract investment. Simultaneously, flake graphite supply is tightening, and demand remains high for industrial uses. The US Department of Defense plans to stockpile 48,000 t by 2030, highlighting the material’s critical importance. Overall, the long-term outlook for natural graphite across both markets remains strong. What was the significance of your German acquisition last year?

In 2024, we acquired a European carbon materials business from the Heraeus Group. This acquisition makes us the only graphite company globally with an in-house electrochemical laboratory. They are advancing Porocarb, a proprietary porous carbon which functions either as a primary anode material or as an additive to enhance battery performance and efficiency. How does the planned Baie-Comeau plant align with your global strategy?

Baie-Comeau is central to our strategy of producing standardized graphite anode materials across continents, using feedstock from our own mines. It will host our main facility for processing graphite into battery-grade anode material. We have applied for essential power access and await the government’s response. With BMI Group, we are advancing the repurposing of a former paper mill into an anode plant, significantly reducing capital expenditure compared to a greenfield build. What is the goal of Northern Graphite’s partnership with Graphano Energy?

Lac des Iles is part of a larger graphite district, with adjacent claims owned by Graphano that share similar grade and crystallinity. Collaborating with Graphano allows us to take a district-level approach, sharing resources, combining data, and streamlining exploration and processing. What is the status of Northern Graphite’s other projects?

We are progressing our Okanjande graphite project in Namibia, despite delays caused by investment challenges and market fluctuations. The project was selected under the European Critical Raw Materials Act and will supply a battery-focused processing facility in France. Both are being developed in tandem to support a secure supply chain. In Canada, we continue advancing our Bissett Creek project in Ontario. Alongside Lac des Iles, Bissett Creek will reinforce North America’s graphite supply. It is being aligned with our planned Baie-Comeau facility, which will produce battery-grade anode material for electric vehicle applications.