Amid China supply chain doubts, dormant US graphite mines see revival after 70 years

Most graphite mines in the U.S. shut down around seventy years ago. It appeared uneconomical to extract the common mineral, used in items ranging from pencils to nuclear reactors, when cheap imports from countries like China were available.

That perspective is now shifting.

Trade frictions with China continue, driving a spike in demand for graphite, an essential component in the lithium-ion batteries powering devices from smartphones to electric vehicles. As federal authorities grow anxious about securing consistent supplies of various critical materials, multiple firms are preparing to extract graphite domestically.

In New York, Titan Mining Corp. has extracted a small quantity of ore from a site in snow-covered forest roughly 25 miles (40 kilometers) from the Canadian border, targeting commercial sales by 2028. Executives feel market conditions favor selling graphite concentrate for advanced technological, industrial, and defense applications. The company states potential uses encompass factory heat-resistant coatings, anodes for large grid-connected lithium-ion batteries, and lubricants for military equipment.

“We believe there is a real opportunity here,” stated CEO Rita Adiani. “We have the ability to supply a significant portion of U.S. needs. And that’s largely because you can’t see China now as a reliable supply-chain partner.”

Trade tensions with China intensified this year following increased tariffs from the Trump administration, though these strains lessened somewhat after President Trump and China’s President Xi Jinping held an October meeting in South Korea.

The northern New York site lies in a countryside area with a deep mining heritage for graphite, iron ore, and garnet. The famous yellow Ticonderoga pencil took its name from a town located several hours east of this deposit, where graphite was historically mined.

Recently, Titan’s Joel Rheault displayed a rock from the new mining zone. It was a seemingly ordinary, speckled piece of schist that shone faintly in sunlight, but it contained approximately 3% graphite.

“You can see how gray the rock is here,” remarked Rheault, the firm’s vice president of operations. “That’s because of that graphite.”

A critical mineral

Graphite’s ability to conduct electricity and resist extreme heat makes it valuable for numerous commercial and military purposes. Consequently, the Department of Energy has declared graphite a critical need, and the Department of the Interior classifies it among 60 critical minerals, a list that also includes over a dozen rare earth elements.

Analysts further predict worldwide graphite demand will keep climbing sharply over the next ten years, fueled by the battery expansion. This covers both extracted “natural” graphite and man-made “synthetic” graphite, the latter typically being higher purity but more costly. Lithium-ion battery anodes can incorporate a blend of both types.

China’s commanding role in supplying both natural and synthetic graphite has long alarmed U.S. policy makers. Alarm grew recently when China instituted fresh export restrictions on graphite and other minerals, though it later suspended those controls for one year.

In efforts to strengthen supply chains for critical minerals such as graphite, federal officials incorporated a production tax credit in the 2022 Inflation Reduction Act. More recently, the Trump administration has secured critical mineral agreements with other nations to broaden sources. It has also prioritized these minerals via expedited government permit reviews.

“What’s happening now needs to happen,” observed Gregory Keoleian, co-director of the Center for Sustainable Systems at the University of Michigan. “I think you just don’t want to be completely reliant on other countries when you have resources that you could develop.”

Multiple active projects

The majority of American graphite mines ceased operations by the 1950s.

Currently, no U.S. graphite mines are in consistent commercial production, as per the U.S. Geological Survey National Minerals Information Center.

However, the center notes the Titan operation is among five active projects, with two in Alabama and one each in Montana and Alaska. Westwater Resources announced this autumn that it hired an engineering company to manage the permitting for developing the Coosa Deposit in Alabama. Graphite One Inc. is working at a location identified by state authorities as the nation’s biggest known large-flake graphite deposit.

“When we are sitting with one of the largest graphite deposits in the entire world … there’s no reason why we need to rely on China for our graphite,” said Anthony Huston, president and CEO of Graphite One.

Titan holds a benefit because its New York graphite reserve was identified several years back at its active zinc mine. The company could commence limited graphite extraction under existing permits while pursuing further approvals for full-scale mining.

This fall, the federal government authorized the New York mine for accelerated permitting, stating it would “build a strategically significant domestic supply chain for graphite.” The U.S. Export-Import Bank also indicated it was considering lending as much as $120 million for construction and committed $5.5 million for a feasibility study.

Titan anticipates ultimately producing around 40,000 metric tonnes (44,092 tons) of graphite concentrate annually, which the company estimates is about half of present U.S. demand for natural graphite.

“We have indications, effectively, that 100% of the output from this facility could be sold,” Adiani said.