DOD Enters Agreement to Expand Domestic Graphite Supply Chain

The Department of Defense has entered into a $3.2 million agreement with South Star Battery Metals Corporation to support the domestic production of Coated, Spheronized, Purified Graphite (CSPG) in Alabama. The agreement, made under Defense Production Act (DPA) authorities, will enable South Star to conduct a feasibility study and potentially construct a battery-grade processing facility. This move aims to strengthen the US graphite anode supply chain for lithium-ion batteries. So far in 2023, the DPAI Program has granted 23 awards totaling $717.5 million. For more information, visit the Department of Defense's website.

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Frequently Asked Questions

1. What is the Department of Defense's recent move regarding the graphite supply chain?

The Department of Defense (DoD) has entered an agreement with South Star Battery Metals Corporation worth $3.2 million to support the domestic production of graphite. This is part of a broader effort to strengthen and expand the U.S. domestic graphite supply chain. Source

2. Why is expanding the domestic graphite supply chain important?

Expanding the domestic graphite supply chain is critical for reducing dependence on foreign minerals and ensuring a reliable supply of materials that are essential for various defense and energy applications, including battery production for clean energy technologies. Source

3. Is the Department of Defense investing in any studies or projects related to graphite supply chain expansion?

Yes, the DoD has made investments such as the $37.5 million agreement with Graphite One (Alaska) to develop domestic advanced graphite supply chain solutions, which includes the Graphite Creek resource. These actions are aimed at expanding capabilities for domestic graphite mining and processing. Source

4. How does this initiative relate to the wider Biden-Harris Administration's policy?

The DoD's initiative aligns with the Biden-Harris Administration's strategy to secure and increase domestic production of critical minerals, which is part of a broader plan to strengthen supply chains and reduce dependence on foreign materials. Source

5. Are there any reports required by the FY2024 National Defense Authorization Act (NDAA) concerning critical minerals like graphite?

Yes, the FY2024 NDAA includes a requirement for a report on the DoD's reliance on graphite and the graphite supply chain, indicating the importance of this mineral to national security and the need for strategic planning. Source

6. Has the Department of Defense provided funding to specific companies for the expansion of domestic graphite mining?

The DoD has granted funding such as the $37.5 million to Graphite One, aiding in the increase of domestic capabilities for graphite production as well as processing. This aims to deliver an integrated supply chain solution. Source

7. What role does graphite play in national security and defense?

Graphite is a critical mineral that is essential for many defense applications, including advanced battery technologies and other clean energy innovations that are vital for modernizing the military and supporting national security objectives. Source

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