How the U.S. Inflation Reduction Act Will Encourage Domestic Graphite Production, According to Graphite One CEO Anthony Huston

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Anthony Huston, CEO of Graphite One, a company focused on becoming an American producer of high-grade anode materials that is integrated with a domestic graphite resource, presented at the Kinvestor Battery Metals and Mining Conference on November 22, 2022.

Weren’t able to attend the conference? Click here to watch the full presentation, available now on YouTube.

Central to Graphite One’s business model is the company’s desire to facilitate a U.S.-based supply chain of advanced graphite material, which is critical to the manufacturing of electric vehicle batteries. Currently, the U.S. is 100% import-dependent on its supply of natural graphite.

In August 2022, the United States federal government passed the Inflation Reduction Act of 2022 (IRA) in an effort to secure the U.S. as a world leader in domestic clean energy manufacturing, putting the country on a pathway to achieving its climate goals, including a net-zero economy by 2050.

Representing $500 billion in new spending and tax incentives, the IRA directs new federal spending toward reducing carbon emissions, lowering healthcare costs, funding the Internal Revenue Service, and improving taxpayer compliance (McKinsey).

As part of the government’s goal to reduce carbon emissions, the IRA made significant changes to previous tax incentives for manufacturers of electric vehicles (EVs), adding additional stipulations for the materials, components, and assembly of EVs.

“Where that really impacts projects like ours is that the graphite needs to be produced in the U.S. to receive that incentive,” said Huston in his presentation.

The IRA requires that critical minerals used in EV batteries must meet a gradually increasing percentage of components extracted, processed, or recycled in North America or in countries that have free trade agreements with the U.S., and that EV battery components must be manufactured or assembled in North America (Forbes).

“That has always been a part of Graphite One’s business plan,” added Huston.

Graphite One’s production is expected to qualify under the Act for tax credits in both categories as it plans to produce both anode materials and purified graphite in the United States, as defined in the IRA.

The company is in the first stages of developing a graphite production facility in Washington State. The advanced materials anode manufacturing facility is the downstream link in Graphite One’s 100% U.S.-based advanced graphite supply chain. While the Washington State facility would be engineered to accept multiple feedstocks required for anode production, the anchor source for the facility would be the Company’s resource near Nome, Alaska, which hosts North America’s largest known natural graphite deposit.

For more information about Graphite One and its projects, visit the company’s website.

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