Graphite One Resources Inc. has announced that the Alaskan Senate has taken up a bill that would allow the Alaska Industrial Development Export Authority (AIDEA) to issue bonds to finance infrastructure and construction costs of the Graphite Creek graphite project.

Senate Bill 203, introduced by Senator Donny Olson (D-Golovin), was referred to the Community & Regional Affairs and Finance committees. “The Seward Peninsula Kigluaik Mountains’ has a significant graphite surface deposit that can lend a positive impact on the local economy,” said Sen. Olson. “This is an opportunity to meet those economic needs, create more jobs in rural Alaska, and supply the United States with a local source of graphite.”

“We are pleased to see the Alaska Legislature take this interest in our project,” said Anthony Huston, CEO of Graphite One. “At present, the U.S. is 100% import-dependent for graphite, at a time when the US Geological Survey and Department of Interior have recognized graphite as a ‘critical mineral’ essential ‘to the national economy and national security.’ We believe our project, including our advanced materials processing plant, can help the U.S. maintain a cutting edge manufacturing capability at a time when ‘the electrification of everything’ is transforming our world.”

In February 2017, Graphite One and AIDEA entered into an MOU to assess potential Alaskan sites for the advanced materials processing plant, which will produce spherical graphite, a key component in EV Batteries and Energy Storage Systems.

As Senator Olson noted, “In 2016, the United States demanded 39,500 metric tons of imported graphite. Tesla’s lithium battery Gigafactory, located in Nevada, is scheduled for production in late 2018 or early 2019, which will require 93,000 tons per year of flake graphite to produce lithium-ion batteries for their vehicles.”