‘You can’t see China now as a reliable supply-chain partner’: Graphite mines forsaken for 70 years come back into fashion

Graphite mines in the United States largely closed down seven decades ago. Mining the ubiquitous mineral found in everything from nuclear reactors to pencils seemed to make little sense when it could be imported inexpensively from other nations, especially China.

That view is changing now.

Demand for graphite, a key material in the lithium-ion batteries that power everything from phones to electric cars, is surging as trade tensions with China persist. With federal officials concerned about the steady supply of a number of critical minerals, several companies have plans to mine graphite.

In New York, Titan Mining Corp. has mined a limited amount of ore from a deposit in snowy woods about 25 miles (40 kilometers) from the Canadian border, aiming for commercial sales by 2028. Company officials believe the geopolitical winds are at their backs to sell graphite concentrate for high-tech, industrial and military uses. That could include heat-resistant coatings in factories, anodes in large lithium-ion batteries connected to electrical grids and lubricants for military vehicles, according to the company.

“We believe there is a real opportunity here,” said company 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 rose this year as President Donald Trump’s administration imposed higher tariffs, though those tensions eased somewhat after Trump and Chinese President Xi Jinping met in October during a regional economic summit in South Korea.

The northern New York deposit is in a rural region with a rich history of graphite, iron ore and garnet mining. The iconic yellow Ticonderoga pencil was named for a town several hours east of this deposit where graphite was mined long ago.

Titan’s Joel Rheault recently held up a rock from the newly mined area. It was an ordinary-looking flecked fragment of schist, glinting slightly in the sun. But it was comprised of roughly 3% graphite.

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

A critical mineral

Graphite can conduct electricity and withstand high temperatures, making it useful for a host of commercial and military applications. As such, the Department of Energy has said the need for graphite is critical, and the Department of the Interior lists it as one of 60 “critical minerals,” along with more than a dozen rare earth elements.

Forecasters also expect global graphite demand to continue soaring in the next decade, alongside the battery boom. That includes both mined, or “natural,” graphite and manufactured, or “synthetic,” graphite, which tends to be purer but pricier. Lithium-ion batteries’ anodes can use a mix of both.

China dominance in supplying both of natural and synthetic graphite has worried U.S. policymakers for years. Concerns spiked recently when China placed new export controls on graphite and several other minerals, only to relax them for a year.

Federal officials trying to shore up supply chains for critical minerals like graphite included a tax credit for critical mineral production in the 2022 Inflation Reduction Act. More recently, the Trump administration struck critical mineral deals with other countries to diversify supplies. It also has emphasized critical minerals through government funding and streamlined reviews.

“What’s happening now needs to happen,” said 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

Most U.S. graphite mines were closed by the 1950s.

Right now, no U.S. graphite mines regularly produce a commercial product, according to the U.S. Geological Survey National Minerals Information Center.

But the center says the Titan mine is one of five active projects, including two in Alabama and one each in Montana and Alaska. Westwater Resources this fall announced it retained an engineering firm to lead the permitting process for mine development at the Coosa Deposit in Alabama. The Graphite One Inc. project in Alaska is at the site of what state officials say is the largest known large-flake graphite deposit in the United States.

“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 has an advantage because its New York graphite deposit was discovered several years ago at the site of its existing zinc mine. The company was able to start limited graphite mining under its current permits while seeking additional permits for full-scale mining.

The federal government this fall approved the New York mine for fast-tracked permitting, saying it would “build a strategically significant domestic supply chain for graphite.” The U.S. Export-Import Bank also said it would consider lending up to $120 million for construction and pledged $5.5 million for a feasibility study.

Titan expects to eventually produce about 40,000 metric tonnes (44,092 tons) of graphite concentrate a year, which the company says is roughly half the current U.S. demand for natural graphite.

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

This story was originally featured on Fortune.com