The recent execution of the Graphite One-Chenyu Agreements represents a significant advancement towards establishing a knowledge base for U.S. Anode Active Material (AAM) manufacturing at Graphite One’s proposed Ohio facility. This milestone includes an exclusive license granted to a leading AAM manufacturer for the North American market. Additionally, Graphite One has announced the grant of long-term incentive awards.
In a recent press release dated October 21, 2024, Graphite One Inc. (TSXV: GPH) (OTCQX: GPHOF), a company focused on building a domestic U.S. supply chain for advanced graphite materials, disclosed the signing of technology license agreements and consulting agreements with Hunan Chenyu Fuji New Energy Technology Co. Ltd. (“Chenyu”), a reputable AAM manufacturer based in Changsha City, China. This partnership paves the way for G1 to introduce leading AAM manufacturing technology to the U.S. battery materials supply chain.
According to Anthony Huston, CEO of Graphite One, the absence of commercialization of synthetic anode battery materials in the United States highlights the importance of these agreements in establishing a domestic supply for lithium-ion battery materials. The partnership with Chenyu provides G1 access to critical AAM technology required to meet the evolving demands of battery manufacturers seeking fast charging, high density, and long-life battery specifications.
The agreements with Chenyu are structured as fee-for-services arrangements and do not include any equity ownership, representation in management or control rights within G1. The technology license agreement offers G1 exclusive access to AAM technologies in exchange for royalties based on net revenues from the sale of AAM products manufactured using the technology. The consulting agreement includes support in designing, constructing, and operating the Ohio AAM plant in exchange for milestone fees.
Subject to financing, G1 intends to construct a commercial AAM facility utilizing this technology at its Warren, Ohio property. The agreements also include provisions for future collaboration on advanced AAM technologies and potential expansion into other markets.
In alignment with its domestic supply chain strategy, Graphite One continues to develop the Graphite One Project, aiming to become a U.S. producer of high-grade anode materials integrated with a domestic graphite resource. The company’s strategic plan includes establishing an advanced graphite material manufacturing plant in Warren, Ohio, and a recycling facility for battery materials, subject to financing.
The recent grant of long-term incentive awards to senior management reflects the company’s commitment to driving innovation and growth within the organization. Furthermore, Graphite One reaffirms its dedication to advancing the development of a comprehensive U.S.-based graphite supply chain solution to reduce import dependency and support the growing demand for anode active materials in the battery market.
For further information on Graphite One Inc., including updates on the progress of the Graphite One Project, investors are encouraged to visit the company’s website at www.GraphiteOneInc.com.
